Summary
Sun Tzu concludes with what he considers the foundation of strategy: intelligence. Wars are decided in single moments, but those moments are prepared by years of knowledge gathering. To remain ignorant of the enemy because you won't invest in intelligence is foolish and inhumane. Sun Tzu identifies five types of spies: local spies (enemy citizens), inward spies (enemy officials), converted spies (enemy agents turned to your side), doomed spies (agents used to spread disinformation), and surviving spies (who return with intelligence). Each type serves different purposes. The chapter—and the book—concludes with the principle that 'foreknowledge' cannot be obtained from supernatural sources or from analogy; it must come from people who know the enemy's situation. The foundation of strategic success is knowledge.
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An excerpt from the original text.(~203 words)
Sun Tzu said: Raising a host of a hundred thousand men and marching them great distances entails heavy loss on the people and a drain on the resources of the State... Hostile armies may face each other for years, striving for the victory which is decided in a single day. This being so, to remain in ignorance of the enemy's condition simply because one grudges the outlay of a hundred ounces of silver in honors and emoluments, is the height of inhumanity. Sun Tzu concludes with what he considers the foundation of strategy: intelligence. Wars are decided in single moments, but those moments are prepared by years of knowledge gathering. To remain ignorant of the enemy because you won't invest in intelligence is foolish and inhumane. Sun Tzu identifies five types of spies: local spies (enemy citizens), inward spies (enemy officials), converted spies (enemy agents turned to your side), doomed spies (agents used to spread disinformation), and surviving spies (who return with intelligence). Each type serves different purposes. The chapter—and the book—concludes with the principle that 'foreknowledge' cannot be obtained from supernatural sources or from analogy; it must come from people who know the enemy's situation. The foundation of strategic success is knowledge.
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Intelligence Amplifier™ Analysis
The Road of Strategic Intelligence
Recognizing that all strategic success rests on intelligence—and that investment in knowledge always pays better returns than operating from ignorance.
Why This Matters
Connect literature to life
Understanding that strategic success depends on superior knowledge—and that investment in intelligence always returns more than operating from ignorance.
Practice This Today
Audit your current intelligence function. What do you know about competitors, markets, and your own position? What would it cost to know more—and what's the cost of not knowing?
Now let's explore the literary elements.
Terms to Know
Foreknowledge
Intelligence about the enemy that enables strategic advantage
Modern Usage:
Competitive intelligence, due diligence, research—knowing before acting
Five types of spies
Local (citizens), inward (officials), converted (turned agents), doomed (disinformation carriers), surviving (returning intelligence)
Modern Usage:
Different intelligence sources serve different purposes—each with unique access and risk
Converted spy
An enemy agent who has been turned to work for you
Modern Usage:
A competitor's employee who shares information, a former critic who becomes an advocate
Characters in This Chapter
Sun Tzu
Strategist concluding with intelligence foundations
Shows that all strategy rests on intelligence—knowledge is the ultimate competitive advantage
Modern Equivalent:
The executive who invests heavily in competitive intelligence and due diligence
Key Quotes & Analysis
"To remain in ignorance of the enemy's condition simply because one grudges the outlay is the height of inhumanity."
Context: Arguing for investment in intelligence gathering
Trying to save money on intelligence costs lives. Knowledge is worth its price.
In Today's Words:
Being cheap about research and competitive intelligence is foolish. The cost of ignorance is always higher.
"What enables the wise sovereign and the good general to strike and conquer, and achieve things beyond the reach of ordinary men, is foreknowledge."
Context: Establishing intelligence as the foundation of strategic success
Superior results come from superior information. Knowledge is the ultimate advantage.
In Today's Words:
Winners know more than losers. That's the secret. Everything else follows from better information.
"Be subtle! Be subtle! And use your spies for every kind of business."
Context: Final advice on intelligence operations
Intelligence should be pervasive, not occasional. Every strategic decision should be informed by knowledge.
In Today's Words:
Make information-gathering a habit, not an event. Know before you act—always.
Thematic Threads
Strategy
In This Chapter
All strategy depends on knowledge—intelligence is the foundation
Development
This final chapter reveals what supports everything that came before
In Your Life:
How much do you invest in knowing before you act?
Preparation
In This Chapter
Foreknowledge enables victory that seems impossible
Development
Superior results come from superior preparation—which requires superior knowledge
In Your Life:
Do you know enough about your competitive situation to act with confidence?
You now have the context. Time to form your own thoughts.
Discussion Questions
- 1
Why do organizations underinvest in competitive intelligence? What psychological factors are at play?
analysis • medium - 2
What intelligence about your competitive situation would be most valuable? How could you get it?
application • medium - 3
How has better knowledge—or ignorance—affected outcomes in your experience?
reflection • deep
Critical Thinking Exercise
The Intelligence Audit
Audit your current state of knowledge about a competitive situation.
Consider:
- •What do you know confidently about competitors?
- •What do you assume but don't actually know?
- •What are you completely ignorant about?
- •What would it cost to know—and what's the cost of not knowing?
Journaling Prompt
Describe a time when ignorance cost you more than knowledge would have. What should you have invested in knowing?