Industry Building Blocks overview of the global economy by industry, with lots of examples from the Auto, Truck, Train & Ship Manufacturing sector.

1. Make your decision with IBB Precision
TM
Contact: Alan S. Michaels
amichaels@IndustryBuildingBlocks.com
© 2015 Industry Building Blocks
IndustryBuildingBlocks.com
The first company to define the
global economy at the granular
(five forces) industry level.
Industry Building Blocks
Company Overview version for:
Auto, Train & Ship Manuf.
January 24, 2015

2. Market terminology was at too high a level to make
great decisions.
 Big Data includes what?
 Internet of Things means what?
 You manufacture Truck Parts– what type?
 You need a Consultant; can you be specific?
 You want Fruit Salad?
2© 2015 Industry Building Blocks Make your decision with IBB Precision™
Yesterday’s Problem
Sure, I’ll make fruit salad.
Damn if I know what kind of
fruit salad you want.
Lack of Precision

3. • Industry Building Blocks provides information on the top
17,000 industries, covering over 99% of the global economy.
• The format for each 7 page industry analysis is the same.
• Granular (line-of-business) industry information supports:
 Corporate planning, including selecting new industries to enter
 Business unit planning
 Market segmentation and strategic marketing
 Opportunity identification
 Competitor analysis (and vendor and business customer analysis)
 Merger, acquisition, and joint venture planning
• Make your decision with IBB precisionTM
3© 2015 Industry Building Blocks Make your decision with IBB Precision™
Industry Building Blocks (IBB)
Provides Market Precision
Make your
decision with
IBB Precision TM

4.  Improve opportunity identification, competitor analysis, and
corporate and business unit strategy development
with and the
Industry Building Blocks Classification System TM
(IBBCS)
 IBB leverages Michael E. Porter’s five forces industry model
 IBB precision is 15x more granular than NAICS
 The IBB research team has been perfecting the Industry Building
Blocks Classification System for more than 14 years.
(Industry Building Blocks is a private company located in NY.)
4© 2015 Industry Building Blocks Make your decision with IBB Precision™
Industry (Line-of-Business Level) Information Is
Step #1 for Strategy Development

5. 5© 2015 Industry Building Blocks Make your decision with IBB Precision™
A Global View of the World Economy by Industry
Is Logically Straightforward
Industry #
Business 1 Business 2 Business 3 . . . Business N
1
2
3
4
5
…
N
 There are “N” number of industries
 There are “N” number of competitors (companies / brands)

6. Industry Name
Bus
1
Bus
2
Bus
3
Bus
4
Bus
5
Bus
N
1 Industry Data 
2 Industry Data 
3 Industry Data 
4 Industry Data 
5 Industry Data 
…
17,000 Industry Data 
6© 2015 Industry Building Blocks Make your decision with IBB Precision™
IBB Presents the IBB Global
Industry Game Board
Company Name (and Brand Names)
…
The Auto, Truck,
Train & Ship Manufacturing
Sector includes over
600 IBB Industries.

7.  By Industry
 By Industry Sector
 By Industry Subsector
 By Industry Group
 By Industry Subgroup
 By Industry (17,000 industries)
 By Company
 By Top Parent Company
 By Immediate Parent (Ex: Subsidiary)
 By Brand
7© 2015 Industry Building Blocks Make your decision with IBB Precision™
IBB Industry & Company Segmentation
Is Built From the Bottom Up
By Industry
 Auto, Truck, Train & Ship
Manufacturing
 Auto Manufacturing
 Autos, Vans & Light Trucks
 Automobiles
 Motor Vehicles / Autos –
Convertibles
By Company
 General Motors
 Chevrolet Division
 Chevy Camaro convertible

8. 8© 2015 Industry Building Blocks Make your decision with IBB Precision™
Companies Typically Compete In More Than One
Industry (Line of Business)
Industry #
Company Names (and Brand Names)
1
Global 500 companies
compete, on average,
in 30 lines of business.
2
3
4
5
6
7
…
17,000

9. By using the: Industry Building
Blocks Classification SystemTM
any number of companies can be
analyzed side-by-side,
at the line-of-business level,
where true competition takes place.
9© 2015 Industry Building Blocks Make your decision with IBB Precision™
IBB Normalization of All Company Data
Enables Apples-to-Apples Comparisons

10. 10© 2015 Industry Building Blocks Make your decision with IBB Precision™
The IBB Classification SystemTM
Enables the Grouping
of Industries. One such example: by Broad Industry Sectors
Industry Sector Name # of Industries
1 Aerospace & Defense 446
2 Agriculture, Forestry, Fishing & Hunting 253
3 Auto, Truck, Train & Ship Manufacturing 601
4 Banking, Financial Markets & Financial Services 521
5 Chemicals Manufacturing 812
6 Construction & Engineering Services 472
7 Consumer Products Manufacturing 1,552
8 Consumer Services & Real Estate 596
9 Food Services & Lodging 127
10 Food, Beverage & Tobacco Manufacturing 1,083
11 Healthcare, Life Sciences & Pharmaceuticals 1,240
12 Insurance, Annuities & Healthcare Plans 374
13 IT, Business Consulting & Business Services 3,026
14 Media, Communications & Entertainment 930
15 Mining, Metals, Energy & Environmental Services 972
16 Other Commercial Products Manufacturing 2,629
17 Retail Trade & B2C eCommerce 265
18 Travel, Transportation, Wholesale & Distribution 368
19 Unlawful Industries & Industries to Be Classified 584
Total Number of IBB (Granular) Industries 17,000
Note

11. Group (and Target) Industries By:
 Text in the Industry Name (Ex: “Consulting”)
 Industry Revenue or Industry Attractiveness Score
 Targeted Customers (Ex: “Car Dealers” or “Taxi Firms”)
 Buyer Type (Ex: “Teenager” or “Company Procurement Mgr”)
 Economic Trend (Ex: “Employment” or “Interest Rates”)
 Technology Trend (Ex: “Internet of Things”)
And by thousands more selection criteria
11© 2015 Industry Building Blocks Make your decision with IBB Precision™
IBB Provides an Unlimited Number of Ways to
Group (and Target) the 17,000 Granular Industries

12. One or more products and / or services that
are direct substitutes
Sold by one or more businesses
To one or more external customers
Requires similar activities to produce the
product or provide the service (hence,
 Rigid Inflatable Boat Manufacturing
 Soft Inflatable Boat Manufacturing
are distinct industries)
12© 2015 Industry Building Blocks Make your decision with IBB Precision™
A Working Definition of “Industry” for Those Not
Familiar with Porter’s Five Forces Model

13. A Molecule & A Chemical Element
Examples of Industry Groups:
• Boat & Ship Manufacturing
• Boat & Ship Equipment & Parts Manuf.
• Marine Engine Manufacturing
An Example of An Industry:
• Ocean-Going Ship Diesel Engine Manufacturing
13
© 2015 Industry Building Blocks Make your decision with IBB Precision™
The Difference Between An Industry Group &
An Industry, Is Like the Difference Between…
An “Industry
Group” =
Two or more
Industries
An “Industry”
Is the Right
Level for a
Five Forces
Analysis

14.  Driverless Cars
Vs. Racing Cars
 Armored Bus Manufacturing
Vs. Double Decker Bus Manufacturing
 Flatbed Truck Manufacturing
Vs. Cement & Concrete Mixer Truck Manufacturing
 Ferry Boat Manufacturing
Vs. Tugboat Manufacturing
 Train Freight Car: Rail Hopper Wagon Manufacturing
Vs. Train Freight Car: Rail Car Carrier Manufacturing
14© 2015 Industry Building Blocks Make your decision with IBB Precision™
To Highlight IBB’s Precision, IBB Views Each of the
Industries Below as Distinct
Each of these
IBB “Industries”
Deserves a Full
Industry Analysis
IBB, Unlike Most Other Industry Classification Systems,
Does Not Lump Together Any of the Industries Below

15. 15© 2015 Industry Building Blocks Make your decision with IBB Precision™
Each (7 page) Industry Analysis Provides the
Following Categories of Information
Industry Revenue Competitors, by:
• Top Corporate Parent
• Immediate Parent
• Brand
Industry Attractiveness
Product Segments
Customer Segments
Channel Segments Industry Substitutes
End Users Industry Complements
Industry Trends Industry Vendor Types
Economic Trends Buyer Purchase Criteria
Technology Trends Industry Uncertainties
Geopolitical Trends & More, including keywords*
* For optional link to DiscoveryPatterns.com

16.  Ability to segment any global market arena into its component
industries to better address market opportunities.
 Ability to group any combination of industries to analyze any
ecosystem.
 Enhanced ability to commercialize new ideas and products by quickly
finding the relevant industry players.
 Superior ability to objectively analyze competitors across all product
lines to compete on a more holistic basis.
 Side-by-side company comparisons at the line of business level
(using data normalized with the IBBCS) to facilitate better marketing and
planning processes overall because of the granularity.
 Better corporate training because every industry and company is
analyzed using the same framework.
16© 2015 Industry Building Blocks Make your decision with IBB Precision™
Line-of-Business (Industry Five Forces) Level
Information Offers Many Advantages

17.  Industry Group Analysis / Market Area Analysis
(A list of industries which make up the general market)
 Industry Analysis Report
(A seven page PDF analyzing one specific industry)
 Company Lines-of-Business Summary Report
(An objective list of industries the company competes in)
 Company Lines-of-Business Detailed Analysis
(An objective list of industries the company competes in with a
seven-page Industry Analysis or a one-page Industry Summary
for each of the company’s lines of business)
 Companies Side-by-Side Analysis
(Compares ten companies or fewer, by line-of-business)
17© 2015 Industry Building Blocks Make your decision with IBB Precision™
Industry Building Blocks Provides the Following Standard
Industry & Company Reports + Much More
Define An
Industry
Group
Define An
Industry
Define A
Company
Compare
Companies

18. 18© 2015 Industry Building Blocks Make your decision with IBB Precision™
Decision Makers Want Information That Enables
Them To Make Better Decisions
Definitions of the term “Industry”
Industry
(used loosely)
Anything you want it to mean. For example:
– The Auto Manufacturing “industry” includes
the Auto Parts “industry” which includes
the Auto Engines “industry” which includes
the Auto CNG Engine Manufacturing “industry”
(Strategically
Relevant)
Industry
1. A definition for strategic planners & industry analysts:
The right level to conduct an industry analysis.
– For example: a Michael Porter 5-forces industry analysis.
Example: Auto CNG Engine Manufacturing Industry
2. A definition for those not familiar with industry analyses:
One or more products and/or services that are direct substitutes
sold by one or more businesses to one or more external
customers (and where the processes for manufacturing the product,
or for providing the service, are similar).
Sounds obvious.
I hope our strategy and
marketing teams know
the specific industries
that we compete in.
Compare
competitors
at the
LoB level.

19. 19© 2015 Industry Building Blocks Make your decision with IBB Precision™
Holistic Corporate Planning
Begins With An Industry Analysis for Each LOB
Company & Industry
Information Sources
(External & Internal)
Activity 2
Activity N
Activity 1
Corporate Strategy
Operational Plan
Financial Plan
< Your Company >
Group Strategy
Operational Plan
Financial Plan
Group A
Group Strategy
Operational Plan
Financial Plan
Group X
© 2003 Alan S Michaels
amichaels@e-Competitors.com
Strategic
Planning
Activities Performed
( Support Function
= Activity Shared
by two or more
businesses)
The basics:
• Ongoing, iterative improvement.
• One-page plans = 80% of the benefit.
• Alignment is critical.
• Speed and flexibility are key.
• All parts are interconnected.
[Holistic]
Planning Framework
Business 1
Products/Services
& Buyer Types
---------------
Industry
Analysis
& Business
Strategy
with linkages to
Support Functions
Operational Plan
Financial Plan
Op Plan Fin Plan
Op Plan Fin Plan
Op Plan Fin Plan
Group Strategy
Operational Plan
Financial Plan
Group B
Group Strategy
Operational Plan
Financial Plan
Group C
Business 2
Products/Services
& Buyer Types
---------------
Industry
Analysis
& Business
Strategy
with linkages to
Support Functions
Operational Plan
Financial Plan
Business 3
Products/Services
& Buyer Types
---------------
Industry
Analysis
& Business
Strategy
with linkages to
Support Functions
Operational Plan
Financial Plan
Business 4
Products/Services
& Buyer Types
---------------
Industry
Analysis
& Business
Strategy
with linkages to
Support Functions
Operational Plan
Financial Plan
Business N
Products/Services
& Buyer Types
---------------
Industry
Analysis
& Business
Strategy
with linkages to
Support Functions
Operational Plan
Financial Plan
Corporate
Decision-Making
Framework
Decision
Makers
CEO
Corporate
Planner
Group Execs
LOB Execs
Marketing
-
Sales
-
CIOs
-
Other
Functional
Managers
For each
Line of Business
Industry
Analysis

20. 20© 2015 Industry Building Blocks Make your decision with IBB Precision™
Use Structured IBB Data + Unstructured Big Data to
Best Support Corporate & Business Unit Decisions
Using Big Data Analytics
Leverage the swarm intelligence of news from companies
like Discovery Patterns to adjust strategies when needed.

21. 21© 2015 Industry Building Blocks Make your decision with IBB Precision™
Market Research Without IBB Is Like Reading
Without Glasses
NAICS View (1 NAICS Industry)
• 336510 Railroad Rolling Stock Manufacturing
IBB View
• Trains / Armored Treasury Van Manufacturing
• Trains / High Speed Train Manufacturing
• Trains / Locomotives - Diesel & Electric Locomotive Manufacturing
• Trains / Locomotives - Remanufactured Locomotives
• Trains / Metros Manufacturing
• Trains / Passenger Coach Commuter Car Manuf.
• Trains / Passenger Coach Luggage Van Manuf.
• Trains / Passenger Coach Mail Van Manufacturing
• Trains / Passenger Coach Restaurant Car Manuf.
• Trains / Passenger Coach Sleeping Car Manuf.
• Trains / Regional & Intercity Trains Manufacturing
• Trains / Subway Train Manufacturing
ETC
IBB
Precision
Wins
IBB Industries are
the Correct Level
for a Five Forces
Industry Analysis

22. 22© 2015 Industry Building Blocks Make your decision with IBB Precision™
An IBB Company Profile Report for: XYZ Inc
Industry Name
Industry
Revenue
XYZ Inc
Share %
XYZ Inc
Revenue
Motor Home Class A Manuf.
List of
Industries
in which
Company
XYZ Inc
competes
% $
Motor Home Class B Manuf. % $
Motor Home Class C Manuf. % $
% $…
% $Luxury Motor Home Manuf.
Total
Revenue $ ____
A company competes in “N” lines of business (industries).
To support decision makers, IBB provides industry information on
each LOB (ex: competitors, products, customers, substitutes, etc.).

23. 23© 2015 Industry Building Blocks Make your decision with IBB Precision™
Company Side-By-Side Report Format for: Auto, Truck,
Train & Ship Manufacturing Companies: A, B & C
Row Industry Name
Company
A
Company
B
Company
C
1 Yes Yes Yes
2 Bus Axles Manufacturing
Does Not
Compete
Yes
Does Not
Compete
3 Bus Chassis Manufacturing Yes
Does Not
Compete
Yes
4 Bus Engine Manufacturing Yes Yes Yes
5 Bus Tire Manufacturing Yes Yes
Does Not
Compete
N Yes Yes Yes
List of all industries where
Companies A, B, & C compete.

24. 24© 2015 Industry Building Blocks Make your decision with IBB Precision™
Prior to Now, Company & Industry Information
Came From Three Basic Categories of Vendors
There are hundreds of
vendors that provide
information on companies -
and they group the companies
into “industry sectors.”
This “industry sector data” is
usually at way too high a level
to be actionable.
There are many data vendors
that use NAICS (and old) SIC
codes in providing industry and
company data. These coding
schemes are also at too high a
level to meet the needs of most
decision makers.
Niche (often premium) vendors for industry and
company information are typically focused on a
narrow set of industries and / or they only cover a
limited geographic area.
2
3
1

25. 25© 2015 Industry Building Blocks Make your decision with IBB Precision™
Decision Makers Increasingly Want Information at
the Line-of-Business Level
Company 10k Historical Data
& Industry Sector
Data Providers
SIC & NAICS
Government Classification
Data Providers
Deep Dive, Narrowly Focused:
Management Consultants,
Industry Analysts
& Market Research Firms
Information Providers
Industry & Company
Line-of-Business
Strategic Intelligence Provider
1 2
3 The New Category4

26. 26© 2015 Industry Building Blocks Make your decision with IBB Precision™
Industry Segmentation & Target Marketing
with IBB Precision Is So Easy
Each of the IBB 17,000
industries has its own
Industry Matrix.

27.  Over 30,000 members
 19 Industry Sector Subgroups
27© 2015 Industry Building Blocks Make your decision with IBB Precision™
Join Our LinkedIn Group: “Corporate Planning,
Strategy & Strategic Market Segmentation”
Top 17,000
Industries
Aerospace & Defense Food, Beverage & Tobacco Manufacturing
Agriculture, Forestry, Fishing & Hunting Healthcare, Life Sciences & Pharmaceuticals
Apparel Manufacturing Insurance, Annuities & Healthcare Plans
Auto, Truck, Train & Ship Manufacturing IT & Business Services
Banking, Financial Markets & Financial Serv. Media, Communications & Entertainment
Chemicals Manufacturing Mining, Metals, Energy & Environmental Serv.
Construction & Engineering Services Other Commercial Products Manufacturing
Consumer Products Manufacturing Retail Trade & B2C eCommerce
Consumer Services, Ed. & Real Estate Travel, Transportation, Wholesale & Distribution
Food Services, Hospitality & Lodging
SUBGROUPS

28. Sample IBB Data Extracts
28© 2015 Industry Building Blocks Make your decision with IBB Precision™
Sample Views of IBB Data for
Auto, Truck, Train & Ship Manufacturing

29. 29© 2015 Industry Building Blocks Make your decision with IBB Precision™
IBB Company “Line-of-Business” Report
Sample
Data Extract
Volvo Group
VOLV-B (STO)
Line-of-Business Analysis

30. 30© 2015 Industry Building Blocks Make your decision with IBB Precision™
IBB Companies “Side-By-Side” Report
Partial Data
Sample
Data Extract

31. Make your decision with IBB Precision
TM
Contact: Alan S. Michaels
amichaels@IndustryBuildingBlocks.com
© 2015 Industry Building Blocks
IndustryBuildingBlocks.com
The first company to define the
global economy at the granular
(five forces) industry level.
Industry Building Blocks
Make your decision with IBB PrecisionTM
Thank You