World Class Market Intelligence Capabilities Bring Higher Effiency And Strong ROI - Only 10% Of Companies
WORLD CLASS MARKET INTELLIGENCE CAPABILITIES BRINGHIGHER EFFICIENCY ANDSTRONG ROI - ONLY 10% OF COMPANIES By Gianluigi Cuccureddu May 31st, 2011 Discuss and feedback this article on BusinessInsider.com Managing Partner of 90:10 Group Netherlands CMO Agora Media Innovation Connect through LinkedIn http://www.linkedin.com/in/gianluigicuccureddu Tel: +31 (0)6 41362612
Higher efficiencies in decision making and strong ROI on their market intelligence budgetsare the outcomes according the 2011 Global Market Intelligence Survey by the GlobalIntelligence Alliance (GIA). The need to address growing global competition has acceleratedthe development of systematic market intelligence at global companies. The study showsthat only 10% of the surveyed companies have market intelligence capabilities that areworld class.The Survey -amongst 900 Market Intelligence professionals- found the followingdistinguishing qualities of companies with world class market intelligence functions:1. They work closer with decision-makersOver half of the companies with world class market intelligence capabilities have at mostone organizational layer between the market intelligence function and the CEO, and nonehave more than four layers. Such companies also have more top management as internalclients.2. They have more extensive networksCompanies with world class market intelligence capabilities get contributions from morepeople within the organization than companies on average.3. They work in a more regular fashion52% of market intelligence work goes into regular deliverables opposed to ad-hocdeliverables, while the figure is 45% for companies in general.4. They more often have a centralized market intelligence functionWhile 69% of companies with world class market intelligence capabilities have a centralizedmarket intelligence function, the same is true for only 56% of companies in general.5. They use their budgets and staff more effectivelyEven though companies with world class market intelligence capabilities work withintelligence budgets and team that are comparable in size to other companies in general,they score significantly higher both in the maturity level of their market intelligencefunctions and in decision-making efficiency.The average budget is is one million euro for a Market Intelligence department. Half of thecompanies spend less than €200.000 and 20% has more than one million to spend. Thelargest budgets can be found in high competitive and mature industries.
Market Intelligence 2.0InfrastructureIn the Survey article the use and impact by social media technologies could not be derived.If we look at the distinguishing qualities of companies with world class market intelligencefunctions, they could well be impacted by social media because there are more extensivenetworks who work in a more regular fashion. If the social technology infrastructure is setup correctly, sharing and collaboration can become part of daily routines.The second advantage of social technologies are cost reductions and an increased efficiencyof sharing, collaboration and getting the right information in the right department at theright time.Continuous real-time intelligenceWhats interesting for Market Intelligence in general as a discipline is the enrichment bysocial media data and its real-time character. The process of acquiring and analyzinginformation in order to understand the market (both existing and potential customers) isreal-time,continuous and descriptive. By analyzing unmediated conversations and contenton current and future needs and preferences, attitudes and behavior of the market, thequality of the input increases because Market Intelligence will get lots of answers withoutquestioning.FutureCompetition increases, PLCs become shorter, occur faster and the New Consumer as definedby Lewis and Bridger, seeks authenticity, is individualistic, independent and well-informed.This new type of consumer actively destroying patterns challenging research and analysis.These are just three reasons to keep further investing in Market Intelligence and the socialmedia data integration into the process.Are your Market Intelligence capabilities enhanced by social media?