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Strategic market intelligence tips and myths (Voka april 2013)


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Market Intelligence doesn't have to be time or budget intensive... to draw strategic conclusions, some of the work can easily be done by yourself -or anyone in your team... the presentation provides some tips on how to do this.

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Strategic market intelligence tips and myths (Voka april 2013)

  1. 1. 7 Myths about Market Intelligence-how to build valuable market insights quickly and cheaply as basis forstrategic decision taking-frederic de meyerfounderinstitute for future
  2. 2. Aim of this presentationShow how to perform market intelligence in an easy,impactful and cost-efficient way as a vital contribution tostrategic decisions at any level within a company……by debunking 7 myths around market intelligence
  3. 3. Myth #1: strategic market intelligence iscomplexHell no, not always !Very often the bleeding obvious isomitted… bottom line thinkingand simple cross-checks can domiracles !
  4. 4. Myth #2: strategic market intelligence is costlyDecision areaNot necessarily !Dependent on the type ofdecision you need to make,strategic intelligence can becostless…although paying foradditional information canprove crucial
  5. 5. AMyth #3: data needs to be 100% accurate tomake decisions based on themNo it doesn’t !There is no such thing as 100%accurate data…furthermore, you shouldn’tmind if the data is 80%, 82.5%or 84.7332% accurate, just aslong as you can makesuccessful decisions based onthem!illusion/delusionAAAAA, CA, C, DA, B, C, DStrategic options: A, B, C, D, E?
  6. 6. Myth #4: you need an external agency to gatherstrategic dataNot necessarily !The internet is loaded withfree data and marketinsights… a thorough andsystematic search can do agreat part of the job!(free statistics)(professional organizations –technology examples)(free market insights)
  7. 7. Quickly assess quality and usefulness of onlinesources
  8. 8. Free sources for competitive assessments
  9. 9. sources to assess your business environment
  10. 10. Monitoring Economic Sentiment-2.5%-2.0%-1.5%-1.0%-0.5%0.0%0.5%1.0%1.5%60708090100110120GDPChangesEconomicSentimentEU (27) Economic Sentiment vs.Real GDP changes (Volumes)Economic Sentiment (at end of quarter, seasonally adj.)GDP Quarterly y/y Growth (Market Price, seasonally adj.)Source: Eurostat, chart built by Cisco MBI6070809010011012020002001200220032004200520062007200820092010EconomicSentiment Indicator, selectedcountriesGermanySpainFranceItalyUKSource: Eurostat, chart built by Cisco MBI- Correlations with revenue? Orders?- Short-term expectations of these countries/industries- How hard will business conditions be in next couple of months?
  11. 11. AustriaBelgiumDenmarkFinlandFranceGermanyGreeceItalyNetherlandsNorwayPortugalSpainSwitzerlandUK-1012343.5 4 4.5 5 5.5 6RealGDPgrowth2010WEF Country Competitiveness IndexSOURCE: WEF, IMF, chart by Cisco MBISegmenting countries based on freely available data
  12. 12. Myth #5: strategic intelligence = 200 slides perquestionDon’t ask for them !Ask for that single chart thatexactly answers your questionand helps you make that onedecision…(but think about it thoroughlybefore you do)JapanNorth AmericaSouth Am.EuropeCISMEAAsiaChinaPasttechnologyadoptionBusiness environmentGeographic priotizationintruductionnew technology [X]Bubble size:Ease of doing businessFavorableUnfavorableHighLowSAMPLE CHART, i4fi
  13. 13. Myth #6: strategic intelligence is unambiguousDig deeper!If a market view leads todifferent conclusions, it meansyou haven’t drilled down to asufficient level of detail…Which market is most promising?
  14. 14. Myth #6: strategic intelligence is unambiguousWhich market is most promising? Not necessarily the biggest one…
  15. 15. Myth #7: interpreting market data is easyHell no, not always !Simple conclusions often hidesome inconvenient truths… thedevil is in the detail !Our addressable marketis growing with 10%. So,provided we keep thesame market share, ourturnover will grow with10% as wellEven if we keep the samemarket share in each ofour markets, our overallshare and turnover mightdecline
  16. 16. Sometimes interpreting market data can be counter-intuitive…Year XMarket size Revenue Market ShareSegment A 60 36 60%Segment B 15 3 20%Segment C 10 2 20%Segment D 10 2 20%Segment E 5 1 20%100 44 44%Year X+1Market growth Market SizeRevenue @same marketshare2% 61,2 36,7225% 18,75 3,7525% 12,5 2,525% 12,5 2,550% 7,5 1,5112,45 46,97Market growth: 12,5%Revenu growth: 6,8%Market Share X+1: 41,8%Even if you keep thesame market share inevery market, youroverall market sharemight decline
  17. 17. Some key advise…• Don’t try to reach 100% accuracy… 80% is fine, just as long as theconclusions are 100% successful;• Don’t spend too much money, think about what you can do yourself, orthrough free sources;• Don’t underestimate the amount of vital information you already haveinternally, try to gather it structurally;• Combine different sources and views to get to new insights;• Don’t over-complicate, few datapoints given in a new way can lead to theright results;• Turn your Market & Business Intelligence needs into ‘critical businessquestions’;• Share findings with partners, channels, employees, shareholders, …
  18. 18. website www.i4fi.comblog www.fredericdemeyer.commail frederic@i4fi.comtwitter @fdemeyerfor useful long-term planning tools: our services(freelance or project based)• Competitive assessments;• Trend assessments;• Strategic positioning;• Investment priotization;• Market opportunity assessmentsdiscover the book“Frederic offers a uniqueinsight of how globalchanges translate into newbusiness opportunities. Thisbook is an essential tool forany future-oriented manageror entrepreneur and anyoneinvolved in innovationstrategies”Philippe De Ridder, co-founder, Board ofInnovationAvailable on
  19. 19. www.i4fi.comwww.fredericdemeyer.comadditional questions: frederic@i4fi.comhelping you anticipate thefuture…
  20. 20. A concrete exampleCritical business question:• In which countries do we invest the limited resources(headcount and budget) in order to maximize the success of theintroduction of a new technology ?
  21. 21. Step 1: creating ‘Leading Indicators’ based on freelyavailable dataBusiness Context Index Internal readiness Index Industry relevance IndexEconomic size UC 3yr growth Retail (Retail IT vs Total IT, IDC)Composit Leading Ind. (OECD) SAN 3yr growth Media (IPTV & Cable household penetration)Economic Sentiment DMS Total Bookings size Finance (weight of Top10 banks per country)Addressable Market Size DMS % Total Bookings Education (Internet in School ranking WEF)e-Readiness (WEF) # DMS channels Government (presence of ICT in Gov offices)ICT development index (WEF) DMS Bookings vs # PartnersComposit Indicator 1 Composit Indicator 2 Composit Indicator 3Economy size: CompositLeading Ind.(OECD)EconomicSentiment:TAM size: e-Readiness ICTdevelopmentindexAVGUKI UKI 2 4 11 1 4 7 4.8Nordics Sweden 8 11 1 9 1 1 5.2France France 3 3 3 3 11 11 5.7Alpine Switzerland 11 2 (na) 7 5 5 6.0Germany Germany 1 14 4 2 9 8 6.3Italy Italy 4 5 5 4 12 10 6.7Benelux Netherlands 6 12 12 6 3 3 7.0Alpine Austria 10 7 6 12 6 9 8.3MED Spain 5 8 7 5 13 13 8.5Nordics Denmark 14 13 10 10 2 2 8.5Nordics Norway 12 9 (na) 11 7 4 8.6Nordics Finland 15 6 2 15 8 6 8.7Benelux Belux 7 10 8 8 10 12 9.2MED Greece 9 1 13 16 15 15 11.5MED Portugal 13 15 9 14 14 14 13.2(country ranking, lesser score = most favorable)
  22. 22. Step 2: create ‘segments’ with conclusionsSource: Cisco MBI MethodologyIdeal worldSeedHarvestWaitIdeal World:- Favorable business environment and DMSpenetration;- Focus on leveraging current success and‘cross the chasm’;Harvest:- Difficult business environment but goodDMS penetration;- Focus on deepening current deals andcustomers;Seed:- Good business environment and prospectsbut low DMS penetration;- Focus on new customers and prospects(cross the chasm);Wait:- Unfavorable business environment and poorDMS penetration;- Focus on marketing and channels to ‘makemarket’
  23. 23. Step 3: Mapping countries in the segmentsSource: VariousThe Bubble Size is an indication of the amount of core DMS industries that areattractive in a specific country (see slide 8). As such, it can also be interpreted ashow ‘labor intensive’ the coverage of this opportunity would be (bigger bubble =more resources or various skills needed).Ideal World:- UK, Germany & Italy- UK and Germany would require moreresources/ vertical skills;Harvest:- Denmark, Spain, Belgium, Greece- Denmark and Belgium would requirerelatively more resources, Spain and Greecefocus on limited # industries;Seed:- Sweden, France, Switzerland andNetherlands;- More of a ‘Business Development’ function ?Wait:- Finland, Austria, Norway, Portugal- Invest in Marketing efforts ?