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Chapter 1: Understanding Intelligence


Rust, Chicks and Jade . . . The Tale of Intelligence

Story A . . . A Case of Rust
A group of Japanese engineers pulled over to a railroad siding near an American manufacturing plant and measured the density of the rust that had accumulated on that piece of rail leading up to the competitor's loading dock. They did not trespass. Entering this rust density number measurement into a mathematical formula they developed, they were able to determine the number of times box cars have slid up to the loading dock over a period of time. Using that indicator, they were able to estimate the volume of shipments.

Story B . . . Hatching A New Idea
How did the Chicago's Museum of Science and Industry discover that its hatching chick exhibit was the most popular exhibit in the museum. There were no turnstiles, no counting mechanism available. The answer lay with the floor tile. The Museum's janitors kept coming to the curators, complaining that the tile wore out far quicker around the chick exhibit than anywhere else.
Eureka!

Story C . . . It's All In The Eyes
Sellers of jade in ancient China were able to tell when a customer was interested in one piece of jade more than in another -- without words or hand motions of any sort. They simply looked into their customers' eyes. When the customer's pupils dilated more for one piece of jade than for another, they had their answer.

All three stories demonstrate that it is human behavior, not machines, data bases or high technology that can reveal a company's behavior or strategy. In the first story, for example, rust is a chemical by-product, but that by-product also reflects the number of cars someone ordered to the loading docks. The chick and jade stories follow similar lines.

All corporations -- manufacturing or service -- are the result of human beings and their transactions. Keep these stories in mind and you will be able to surmount those seemingly impenetrable competitor castles.

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