The Rise of Web Intelligence

How rumors, leaks, and news online have transformed the Internet’s impact on business

We live in a market of instant information, where perception and image are increasingly linked to stock prices, and the best strategic plans can be undermined in the course of a morning. With 56% of the population online, gossip spreads like wildfire—from thousands of sources that lie beyond the reach of search engines and traditional information services.As a handful of high-profile cases in the past seven years have shown, companies pay a heavy price for gossip initiated online. Perhaps most distressing for companies is the way gossip—whether true or false—can move from the Web to the Business section of print news in the matter of one day. Consider:

• Over the past seven years, the proliferation of gossip online—from uncontrolled leaks to quickly spreading rumors—has significantly impacted the success of companies nationwide. In a climate where 60% of print journalists would report an online rumor with one confirmation and almost 20% would report a rumor directly from a major online source, the risks incurred by staying out of the loop are high (Ross Report on Cybermedia, May 2000).;

• Data leaks: In 1999 the online site BlueOvalNews.com posted confidential Ford documents that undermined the automobile maker’s lobbying efforts against tighter emissions and fuel-economy regulations. The negative publicity exposed a contradiction in Ford’s policy and caused an ensuing loss of credibility.;

• Product secrets: In spring 2000, Yahoo chat rooms were buzzing with unreleased information about new Apple mouses and duel-processor PowerMacs. Apple sued Yahoo, as Apple competitors profited from the secret information by tailoring new product releases to counter Apple’s efforts.;

• Valuation loss: In summer 2000, a false press release, issued by a newswire intern, stated that Emulex was restating its earnings and firing its CEO. Emulex watched as $2.5 billion dollars was knocked off its market cap in the course of one morning, with most of the damage done in the first half an hour after release. Likewise, Oracle’s stock plunged last year after false rumors of owner Larry Ellison’s death surfaced and caught on fire in chat rooms. Oracle became the most heavily traded stock of that day, losing as much as 30% before snuffing out the rumor.;

What is Web Intelligence?

Companies like these have learned that having access to rapid online content before it reaches traditional news venues can effectively make or break a company’s competitive positioning. This “Web Intelligence” includes the vast amount of transient digital information—news, rumor, speculation, and public commentary—that can have a significant impact on a company’s reputation, sales strength and ultimately its stock price. Access to Web intelligence is most valuable to a company within the first few hours that it appears online. In this vulnerable window of opportunity, strategic planners can take advantage of breaking competitor news or squash a potentially dangerous rumor.

To fill this critical information gap, Moreover uses dynamic database technology to deliver relevant Web Intelligence to companies from over 2400 online sources—including major news sites, niche sites, complaint sites, Web logs, discussion boards, and message groups. Near real-time updates posted to company intranets allow employees company-wide to respond to information while it is still within action range. Instead of being forced into a reactionary stance, companies wield Web Intelligence to maintain a competitive edge and plan accordingly.

According to Aberdeen Group research director Guy Creese, many companies can benefit from adding Web Intelligence to their information arsenal. “Information-intensive industries ... need to complement their traditional news services with Web-based intelligence in order to quickly act on new developments,” said Creese. “Moreover takes the labor out of being Web-aware by automatically pointing to the up-to-date, Web-sourced information that these types of companies need to remain competitive.”

Internal departments that stand to benefit from Web Intelligence include sales, marketing, knowledge management, and PR, as well as CIOs, intranet and extranet managers and corporate librarians. For one company, spotting earnings speculation on a CBS Marketwatch discussion board enabled the marketing team to respond immediately, restoring confidence and keeping the rumor from making Monday’s morning paper. Another company found an industry-first opportunity for the sales team in an update from the Korea Post.

The difference between the Web as curse and the Web as blessing for corporate communications lies in the ability to find and identify critical information early. Web Intelligence, in all its forms, gives companies a chance to create an environment of action and strategy, where bad news may be managed quickly, and good news converted into profit