Intelligence Win The War (JerryTalk audio version)

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Intelligence Win The War (JerryTalk audio version)

  1. 1. Intelligence Wins the War Jerry Nye 兵者,國之大事,死生之地, 存亡之道,不可不察也
  2. 2. Why Market Intelligence Procurement organizations rely on and systematic market intelligence to support strategic decision-making in recent years due Economic meltdown, Significant commodity price volatility, and High-profile bankruptcies Intelligence Support Procurement Needs Target Price Competitive Analysis Market deflection Supply Market Win or Loss Marketing and Sales Procurement Decisions Product Development Supply Market Landscape Market Requirements
  3. 3. Challenges Face Gathering Market Intelligence Needs Executive Strategy Make & Buy Marketing Suppliers <ul><li>Is this the right decision? </li></ul><ul><li>Is this the right saving? </li></ul><ul><li>Price war – now what? </li></ul><ul><li>Over inventory? </li></ul><ul><li>New products coming out? </li></ul><ul><li>Share of wallet and why </li></ul><ul><li>What the suppliers really thinks </li></ul><ul><li>Rumors, trends, what the street says </li></ul><ul><li>Where industry is going </li></ul><ul><li>What consumer really thinks </li></ul><ul><li>What is on competitor product roadmap </li></ul><ul><li>Build vs.Outsouring? </li></ul><ul><li>Purchasing influence? </li></ul><ul><li>What is possible and what is not </li></ul><ul><li>What the future holds </li></ul><ul><li>Is this the right supplier? </li></ul><ul><li>Is this the right price? </li></ul><ul><li>Should we buy or exit? </li></ul><ul><li>Demand up or down? </li></ul><ul><li>Good industry to be in? </li></ul><ul><li>How the company compares </li></ul><ul><li>How competitors are positioning </li></ul><ul><li>First hand what customer thinks </li></ul><ul><li>Collective industry perceptions </li></ul>Knows Requires a funded, focused, credible, professional people
  4. 4. Gather Intelligence on Macro-economic Factors <ul><li>GDP growth </li></ul><ul><li>Consumer spending, business investment indices </li></ul><ul><li>Unemployment levels, consumer and producer price indexes </li></ul><ul><li>Interest rates, exchange rates </li></ul><ul><li>Potential changes in public policy on environmental requirements, tariffs, and tax Potential disruptions to the global supply chain, including security concerns and customs delays </li></ul>Procurement organization should gather intelligence on macroeconomic data, industry trends, and information on supplier financial viability and business continuity.
  5. 5. Collect Suppliers information <ul><li>Financial Ratio. Quick ratio, Debt-to-equity, Current ratio and Cash flow </li></ul><ul><li>Pricing and Profit. Supplier’s profit margin </li></ul><ul><li>Capital Sources. Supplier’s sources of capital, Cost of capital—interest rates </li></ul><ul><li>Proprietary . Supplier stability indicators and Supplier performance and operations measures </li></ul><ul><li>Business Continuity. Supplier dependency measures, Supplier exposure reviews </li></ul>
  6. 6. Identifying Reliable Sources of Information <ul><li>Free Public. Internet resources such as Hoovers, Yahoo </li></ul><ul><li>Industry Specific. Trade magazines and industry newsletters such as American Metal Market . </li></ul><ul><li>Proprietary- Customized news alerts such as Dow Jones, Wall Street Journal </li></ul><ul><li>Informal/Internal . Corporate finance department information </li></ul>
  7. 7. Cisco <ul><li>Identifying distressed vendors and leveraging that knowledge to renegotiate </li></ul><ul><li>Sharing relevant industry or economic forecasts with strategic suppliers to enhance collaborative partnership </li></ul><ul><li>Building a cost model </li></ul><ul><li>Designing internal contingency plans for increased customs processing times </li></ul><ul><li>Developing alternative sourcing arrangements for at-risk, single – sourcing products </li></ul><ul><li>Deploying additional dedicated resources to increase monitoring of suppliers facing financial distress and security concerns </li></ul>
  8. 8. Motorola Category Competitive Advantage/Rapid Sourcing initiatives <ul><li>Setup price target and saving goal </li></ul><ul><li>Supply market update </li></ul><ul><li>Market deflation </li></ul><ul><li>Category competitive advantage (CCA) </li></ul><ul><li>Absolute competitiveness </li></ul><ul><li>Fact-based negotiation </li></ul><ul><li>Category deep dive </li></ul><ul><li>Cost modeling </li></ul>
  9. 9. IBM Procurement Competitive Advantage
  10. 10. Avaya copy exactly Market Intelligence Cost Modeling Teardown Analysis Face Based Negotiation Copy Exact Re-structure initiative Inventory analysis Setup negotiation target Cost modeling Teardown analysis Supply Market update Market deflation Market intelligence
  11. 11. The Five Ws <ul><li>Why – S trategic decision-making tool </li></ul><ul><li>What – Know competitive position </li></ul><ul><li>Who – CICSO, IBM, Motorola …etc </li></ul><ul><li>Where – Electronic equipment, consumer market </li></ul><ul><li>When – Economic meltdown, Significant commodity price volatility, and high-profile bankruptcies </li></ul><ul><li>How – Copy exactly </li></ul>
  12. 12. Contact me <ul><li>630-487-9282(cell) </li></ul><ul><li>[email_address] </li></ul><ul><li>http://www.linkedin.com/in/jerrynye </li></ul>

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