The Future of Market Intelligence GIA White Paper 3/2010

3/2010 GIA White Paper Paper White GIA

MI Trends 2015 – The Future of Market Intelligence GIA White Paper 3/2010

The intelligence industry towards Executive Summary 2015 is heading to more sophistica- Market Intelligence by the very definition is about looking into the future and providing actionable insights. However what does the future hold in tion, integration to business proc- store for Market Intelligence itself as a discipline and profession? The GIA esses, impact to decision making, survey provoked lots of commentary and insights around the anticipated future developments of corporate intelligence programs. The survey and visibility. This GIA White Paper results and the related discussion in this White Paper have been built looks into the trends and anticipat- around the Key Success Factors of MI as presented in the GIA World Class MI Framework. Some of the highlights of the survey results have been ed developments of the industry to summarized below. help companies develop their MI Intelligence Scope programs accordingly. The findings • Customers, end users and competitors as the change drivers are based on an MI trends survey towards 2015 • Emerging markets presenting the biggest opportunities and hence conducted by GIA among 146 execu- driving the intelligence efforts tives and intelligence professionals Intelligence Process globally during May 2010. • Intelligence co-creation • Decision point intelligence (MI integrated to major business processes) • Social media tools becoming part of the intelligence process

Intelligence Deliverables • Increasingly sophisticated intelligence deliverables • Increased degree of future orientation • More emphasis on providing conclusions, provocative arguments and executive briefings on strategic topics

GIA White Paper 3/2010 MI Trends 2015 – The Future of Market Intelligence 1 Intelligence Organization 3/2010 • Centralization & decentralization trends in parallel; both representing progress • Intelligence networks and expert teams (fixed and virtual teams) • Outsourcing of non-core activities

Intelligence Tools • RSS feeds to desktop, free news aggregation and video webcasts • Mobile devices will be used increasingly as tools for sharing intel- GIA White Paper Paper White GIA ligence • Graphical approaches and dashboards ensure a high degree of visualization

Intelligence Culture • Executive commitment • Demonstrating the value of MI on an everyday basis • Internal branding of MI, training of users • Social media paving the way for increased virtual collaboration

GIA White Paper 3/2010 MI Trends 2015 – The Future of Market Intelligence 2 3/2010 GIA White Paper Paper White GIA

Table of Contents Executive Summary...... 1 Table of Contents...... 3 1. INTRODUCTION...... 4 2. MI Scope 2015...... 5 3. mi process 2015...... 8 4. mi deliverables 2015...... 11 5. intelligence organization 2015...... 13 6. intelligence tools 2015...... 17 7. intelligence culture 2015...... 20 8. Scenarios for MI towards 2015...... 22

GIA White Paper 3/2010 MI Trends 2015 – The Future of Market Intelligence 3 1. INTRODUCTION 3/2010

The purpose of the GIA MI Trends 2015 survey was to identify key trends and uncertainties that will influence the MI industry until 2015 and beyond in order to help companies develop their MI programs accordingly.

The survey was conducted in May 2010. 146 respondents, of whom 83% were intelligence professionals and 17% end users, replied to 19 questions related to the six key success factors of world class Market Intelligence: Scope, process, deliverables, tools, organization, and culture. Paper White GIA The survey contained both closed and open ended questions.

Using the survey results The reader may want to use this White Paper for collecting the relevant trends identified in the survey to the GIA World Class MI Framework and determining whether the trends suggest specific development efforts on one or several of the MI KSF’s in the reader’s own organization (Exhibit 1). The trends should provide ideas and perhaps confirm existing impressions about how to direct the intelligence resources, what tools to develop, how to organize the intelligence function, and what kinds of processes, deliverables and capabilities should be enhanced, going forward.

Level Informal MI Basic MI Intermediate MI Advanced MI World Class MI Description “Firefighters” “Beginners” “Coordinators” “Directors” “Futurists” Intelligence No specific focus has been Limited scope, seeking quick Wide scope with the attempt Both wide and deep scope Future-oriented scope that Scope determined. Ad hoc needs wins. Focus typically on com- to cover the current business covering not only issues of also covers topics outside of drive the scope. petitors or customers only. environment comprehen- HQ interest, but also those the current micro business sively. that interest business units. environment.

Intelligence Reactive ad hoc process puts Needs analysis made. Estab- Secondary info sources Advanced market monitor- MI integrated with key busi- Process out fires when they emerge. lishing info collection from complemented by some pri- ing and analysis processes ness processes and utilized Uncoordinated purchases of secondary external sources. mary info collection. Analysis established. Targeted com- in key decisions. Future information. Little or no analysis involved. included with still a limited munication of output to key oriented analysis is being WORLD CLASS MI scope. people. conducted, and an early warning capability exists. ADVANCED MI Company-specific action plan for maintaining and further developing the intelligence Intelligence Ad hoc deliverables quickly Regular newsletters comple- Various reports and profiles Two-way communication is High degree of future orienta- Company-specific action plan INTERMEDIATE MI operation at world class levels Deliverables put together from scratch. ment ad hoc deliverables, emerge as new, structured increased in both produc- tion and insight creation in and time schedule for reaching little analytical ambitions. MI output. ing and utilizing the MI the process of producing the next level BASIC MI Company-specific action plan output. The level of analysis and delivering MI output. and time schedule for reaching increases. Workshops and seminars in the next level Company-specific action plan regular use. INFORMAL MI and time schedule for reaching Trends 2015 the next level Intelligence Email and shared folders as Corporate intranet is emerg- Web-based MI tool estab- Sophisticated channeling of The MI tool with its function- Company-specific action plan Tools the primary means for sharing as a central storage for lished that provides access both externally and internally alities supports the intel- and time schedule for reaching ing and archiving informa- intelligence deliverables. to structured MI output. Us- produced MI content to the ligence process, and is being the next level tion. Email still in use for distribu- ers receive email alerts about MI tool. used frequently for end user tion. new info in the system. collaboration.

Intelligence No resources specifically One person appointed as A fully dedicated person Establishing an MI network Integrating the internal Organization dedicated to MI. Individuals responsible for MI. Increas- manages MI and coordinates with dedicated resources in MI organization with the conducting MI activities on a ing coordination of MI work activities. Centralized, inter- business units. Non-core MI outsourced arms to support non-structured basis. in the company. Loose rela- nally or externally resourced activities outsourced. Utiliza- key business processes. A tionships with external info info collection and basic tion of local primary info steering group to guide MI providers. analysis activities exist. collection. efforts.

Intelligence No shared understanding ex- Some awareness exists of MI awareness on a moderate People participate increas- A strong MI culture is reflect- Culture ists of the role and benefits MI, but the organizational level, sharing of info is en- ingly in producing MI ed in the way the organiza- of systematic MI operations. culture overall is still neutral couraged in the organization content. Top mgmt voices tion shares info and acts on towards MI. through internal training and its continuous support to MI it. CEO is a strong supporter marketing. efforts. of MI.

Exhibit 1. From trends to a task list with activities designed to improve one or several of the key success factors in the MI Roadmap

The intelligence development needs and the subsequent efforts are unique to each company and its business, organization and culture. The trends presented in this White Paper can therefore only suggest direction and next steps, but the exact timeline and linkage between development efforts with regards to different intelligence KSF’s are necessarily case-specific each time. Highlighting this is the staircase graph on the right hand side in Exhibit 1. Each step in the staircase is reached through a combination of intelligence development efforts that are a unique set for each company’s specific situation.

The readers are also encouraged to find case examples of how different companies have gone about taking their intelligence operations to advanced levels from the earlier GIA White Papers. However the emerging trends may shape the intelligence industry, there are fundamentals that stay, and the survey respondents, too frequently referred back to basics that may not be new as topics, but whose importance may be even growing when the corporate intelligence programs mature.

GIA White Paper 3/2010 MI Trends 2015 – The Future of Market Intelligence 4 Defi nitions and terminology Market Intelligence (MI, frequently also used interchangeably with “Competitive Intelligence, CI” or “Business Intelligence, BI”) is a distinct discipline by which organizations systematically gather and process information about their external operating environment (such as customers, competition, trends, regulation, or geographic areas). The purpose of Market Intelligence is to facilitate accurate and confi dent decision making that is based on carefully analyzed information about the above mentioned topics. GIA White Paper 3/2010 Paper White GIA

2. mI ScOPE 2015

Intelligence Scope - Introduction Defi ning the scope of the intelligence operation translates as listing out corporate functions that should be using intelligence deliverables, and topics and themes that each of them are most interested in. Additionally, the degree of future orientation needs to be determined; Looking into the rearview mirror is a good starting point, but a mature MI operation also needs to spend a lot of time on outlining possible future scenarios of the operating environment.

Exhibit 2. Market Intelligence scope and the related user groups

CORPORATE PLANNING & BUSINESS DEVELOPMENT: Strategic Intelligence

R&D: CORPORATE Technology COMMUNICATIONS: Trends and Intelligence Themes BUSINESS ENVIRONMENT TRENDS AND CRITICAL THEMES Media Intelligence

SOURCING: SUPPLIER CUSTOMER MARKETING & SALES: INDUSTRY Industries INDUSTRY INDUSTRY Supplier INTELLIGENCE INTELLIGENCE INTELLIGENCE Market & Product Intelligence Scope Intelligence

INVESTOR RELATIONS: SUPPLIER COMPETITOR CUSTOMER CRM: Peer Group & Companies INTELLIGENCE INTELLIGENCE INTELLIGENCE Key Customer Capital Markets Intelligence Intelligence

INTEREST GROUPS Market Region

Value Chain Dimension

ALL DESICION�MAKERS: Market Monitoring

GIA White Paper 3/2010 MI Trends 2015 – The Future of Market Intelligence 5 Trends 2015 - Survey Results 3/2010 Not surprisingly, the survey results suggest the emerging growth markets such as China, Asia Pacific, Latin America, the Middle East and Eastern Europe are rapidly becoming part the geographic scope of most companies’ intelligence programs (Exhibit 3). The primary focus in these areas is gradually shifting from looking at investment opportunities and market entry strategies to continuously keeping the areas under the radar screen. Many Western companies already have an established presence in the growth markets, and they now need to stay on top of the local market dynamics both on an everyday basis and looking into the future. As a result,

processing and translating local language business information will most likely consume more Paper White GIA resources than before.

Which areas in the business environment will be under the heaviest change and therefore have the most significant impact on MI efforts?

Geographical perspective

North America

Latin America

Northern Europe

Western Europe

Eastern Europe & CIS

Africa

Middle East Increase significantly (+2) Greater China Increase moderately (+1) Remain the same (0) Asia Pacific Decrease moderately (+2) Decrease significantly (+2) -1,0 0,0 1,0 2,0

Exhibit 3. Anticipated changes in the regional scope of the intelligence program

From a value chain perspective, customers, end consumers and competitors will continue to be under the primary focus of the intelligence efforts for most surveyed companies; Customers and end users since they drive the business whether in the mature markets or emerging ones, and competition since it typically influences the pricing and differentiation strategies. Suppliers and distributors, in turn tend to be heavily under the radar screen in industries undergoing rapid changes in the value chain, i.e. M&A activity, partnerships and joint ventures on the supplier side, or for instance shifts in manufacturing technology or distribution strategies.

GIA White Paper 3/2010 MI Trends 2015 – The Future of Market Intelligence 6 3/2010

Which areas in the business environment will be under the heaviest change and therefore have the most significant impact on MI efforts?

Value chain perspective

Suppliers GIA White Paper Paper White GIA

Competitors

Distributors Increase significantly (+2) Customers Increase moderately (+1) Remain the same (0) Decrease moderately (+2) End users Decrease significantly (+2) -1,0 0,0 1,0 2,0

Exhibit 4. The dominant focus of MI efforts continues to be on the front end of the value chain

The scope of the intelligence efforts is initially determined by the MI needs analysis that should be repeatedly revisited even if the company is not expanding to new geographic areas, or the value chain that it belongs to remains stable. User groups to the intelligence program are also part of the scope of the activity, and the existing intelligence infrastructure can be leveraged to serve additional corporate functions and activities, of which Risk Management is an emerging example.

Risk management emerging as an application area of MI With the Sarbanes-Oxley Act in force since 2002 and the more recent major failures in corporate risk management, it’s becoming increasingly important for especially public companies to com- ply with strict risk control measures both financially and qualitatively. From the MI perspective, this means that for instance sizable strategic investment decisions should be backed up with sound research and analysis, not only to ensure business success in the first place, but also to avoid the management being held liable afterwards for bad decisions made based on improper or missing information.

The implications of risk management becoming part of the application areas of MI in the organization are not exotic; Deliverables will need to be tailored accordingly, but the processes and methodologies rarely differ from other intelligence efforts. Market Intelligence can bring an external point of view to the risk management discussion that is typically internally focused: On top of internal business risks, management should consider risks originating from the customer base, competitive dynamics, macroeconomic factors, political environment, or technological shifts.

GIA White Paper 3/2010 MI Trends 2015 – The Future of Market Intelligence 7 3. mI PrOcESS 2015

Intelligence Process - Introduction “Intelligence process” refers to the process of gathering, analyzing and reporting information about specifi ed topics to users. The intelligence process should always be anchored to the existing corporate processes (strategic planning, sales, marketing, product management, etc.) within which information will be used. In practice, the output delivered by the intelligence proc- GIA White Paper 3/2010 Paper White GIA ess should fi nd its place as part of the strategic planning process, sales meetings, marketing reviews and innovation management, or as part of simply maintaining current awareness in the organization about the developments in the external operating environment.

Exhibit 5. Intelligence process and the role of its output as part of business processes

�. UTILIZATION & FEEDBACK Conclusions, �. NEEDS Implications ANALYSIS and Decision-Making

Project- and Process-Related �. DELIVERY �. COVERING Intelligence Support SECONDARY INFORMATION Strategic Sales & ing SOURCES Planning Market- R & D Other

�. ANALYSIS Continuous Market Monitoring �. PRIMARY RESEARCH

Unstructured Information

Exhibit 5 illustrates the phases in the cyclical intelligence process: A needs analysis leads to information gathering from both secondary and primary sources, after which the information is converted into analyses and conclusions, followed by delivery, utilization and feedback. The concrete output of the process, is in turn illustrated on the right hand side of the graph, where decision making is backed up by intelligence products of diff erent purpose, format and level of analysis depending on the user groups.

trends 2015 - Survey results The survey results suggest that social media applications will be used increasingly for collecting

GIA White Paper 3/2010 MI Trends 2015 – The Future of Market Intelligence 8 and sharing information for MI purposes. Three perspectives were specifically brought up in the 3/2010 survey:

• Information collection and analysis around individuals. By monitoring the activities in social media of some key people at customer, competitor, and supplier organizations, it will be possible the identify projects, new competence areas, travel plans, business rela- tionships, and open positions that combined tell a lot about the company’s strategy and initiatives.

• Internal use of features from social media applications. Competitor and customer wikis will Paper White GIA be created in order to enhance the internal knowledge about them. Blogs will be used in order to provide internal context and alternative perspectives to relevant business signals, and crowd forecasting will emerge as a parallel tool to traditional forecasting methods. • Cultural shift triggered by social media. As people get used to both networking virtually and communicating on the go through smartphones and pocket computers, it should become easier to engage different parts of the organization in the daily intelligence efforts.

The survey results give strong support to co-creation as an emerging trend also in the corporate world, i.e. intelligence deliverables are created jointly by MI professionals and various decision- makers and stakeholders. In practice, MI professionals will need to increasingly often give briefings and presentations and engage in facilitating workshops such as scenario planning, war gaming, crowd forecasting, and trend seminars.

From the MI perspective, the co-creation trend means two things:

• Decision-makers, i.e. the end users of the intelligence deliverables will engage more tightly in the process of actually producing the insights. This is typically rewarding and motivating for intelligence professionals who in turn get to be involved in reaching the often strategic decisions that the company takes based on the intelligence efforts. • However, to claim their position as the management’s trusted advisor and co-worker, intelligence professionals must truly understand the company’s business fundamentals and the management’s mindset, and to incorporate this understanding into their deliverables in an analytical and thought-provoking manner. In practice, co-creating intelligence deliverables with management does not mean less work for the intelligence professionals, but more.

The survey results in Exhibit 6 suggest that ideally in the future, the intelligence team needs to use their time on taking the intelligence deliverables to a high analytical level, after which it is time for the management to get involved and reach the final conclusions jointly with the intelligence team. Not surprisingly, the analysis process as a whole is not something that many companies would see being outsourced, or that management would be using much time on turn- ing information into analyses. Outsourcing other parts of the intelligence process than analysis will, on the other hand be considered by many of the surveyed companies in the interest of liberating time from the in-house resources to concentrate on working close to the management and decision-making.

GIA White Paper 3/2010 MI Trends 2015 – The Future of Market Intelligence 9 3/2010

How do you anticipate the analytical output of the MI process to develop?

Analysis is conducted by a central MI organization

Analysis is conducted by Paper White GIA decision-makers themselves

Analysis is conducted in co-operation by the MI professionals Increase significantly (+2) and decision-makers Increase moderately (+1) Remain the same (0) Analysis work is largely outsourced Decrease moderately (+2) Decrease significantly (+2) -1,0 0,0 1,0 2,0

Exhibit 6. Anticipated developments in the analysis process

Standardization of the MI process throughout the organization Typically in large organizations, intelligence efforts first emerge in regional units, without any significant central coordination that would ensure uniform research approaches, analysis methods or presentation templates. Many companies have realized, however, that building a solid world class intelligence program that is recognized company-wide requires an HQ-centric approach to ensure that the local units have a common platform to base their own efforts on. By at least partly standardizing the presentation templates, analysis frameworks, and sourcing of data, companies will achieve cost savings, avoid doing double work, facilitate cross-functional cooperation, and maximize the benefits of the intelligence program for the entire organization.

Decision-point intelligence One of the frequently mentioned topics in the survey – and indeed in any MI-related discussions lately – is the integration of MI to decision-making and corporate business processes. Consider- ing the popularity of the topic, it is surprising how few companies to date can honestly say that their decision-point intelligence is in a good shape, i.e. that all strategic decisions are being backed up with timely and well prepared analyses. Two conclusions can be drawn:

• Intelligence teams still need to work further on proactively understanding the business fundamentals and growth drivers of the company - and the related decision-making processes • Decision-makers in turn need to understand that the intelligence teams will need continuous visibility not only to the concrete assignments that are requested from them, but to the decision points in the background from which the intelligence needs are derived

GIA White Paper 3/2010 MI Trends 2015 – The Future of Market Intelligence 10 4. MI Deliverables 2015 3/2010

Intelligence Deliverables - Introduction When considering the quality standards to be set for intelligence deliverables, it is helpful to think of the entire intelligence operation as an organization that produces marketable products to end users just like any company. Ad hoc deliverables are hard to produce, manage, sell, or measure systematically in any organization, and the same applies to the organization that produces intelligence deliverables. Paper White GIA

The more sophisticated the intelligence deliverables are, the more they should aim at generating insight, since plain information will not be impactful enough to drive strategic and operative decisions. Insight, instead combines the newly created understanding with anticipated business implications, and has the power of pointing at directions to where the organization should be steered.

Exhibit 7. Typical intelligence deliverables

User Collaboration (Collaboration, Field Signals and Analysis)

Strategic Sales & R & D Other Planning Marketing

Analysis

Proﬁles

Reports

News extensions, Geographical areas News & Signals News extensions, Speciﬁc topic areas

Trends 2015 - Survey Results In general, MI deliverables will become increasingly sophisticated in the future. The survey results (Exhibit 8) suggest that MI products in the future will feature an increased analytical depth, online availability and still greater future-orientation. The sophistication of the intelligence deliverables ties in with the overall stage of development of the intelligence program, however; By combining experience with tools and resources it is possible to concentrate on increasingly analytical and future-oriented intelligence output, such as analytical deep-dives, scenario analysis, and war gaming workshops, while in the early stages there’s typically more emphasis on rather basic deliverables.

GIA White Paper 3/2010 MI Trends 2015 – The Future of Market Intelligence 11 3/2010

How will the MI deliverables develop with regards to the following aspects?

Analytical depth

Variety of deliverables GIA White Paper Paper White GIA Future orientation

Online/ just-in-time / frequently updated content instead of one-time Increase significantly (+2) reports Increase moderately (+1) Remain the same (0) Face to face delivery and discussion of Decrease moderately (+2) MI output Decrease significantly (+2) -1,0 0,0 1,0 2,0

Exhibit 8. The anticipated development in MI deliverables towards 2015

The survey respondents do not seem to put as much emphasis on the face to face delivery and discussion about the intelligence deliverables as on the technical qualities such as analytical depth and future orientation. This is somewhat surprising considering the earlier discussed trend of increased co-creation and interaction between decision-makers and intelligence professionals. The results can perhaps be interpreted from a timeline perspective: The need to develop the technical qualities of the deliverables is more imme- diate for many companies than the face to face delivery that only comes as the next step.

How do you see the end user value of the following intelligence deliverables developing towards 2015?

Numbers, figures and hard facts about competitors’ or customers’ performance

Comparison and benchmarking between our and competitor products and services

Ideas, thoughts and opinions from experts about how the marketplace is changing

Discussions, comments, dialogue between people within our network

Broad trends and themes about consumer and household behavior

Macroeconomic indicators and forecasts to help understand business cycles Increase significantly (+2) Increase moderately (+1) Industry-level indicators, price data, Remain the same (0) market size and market share data Decrease moderately (+2) Decrease significantly (+2) -1,0 0,0 1,0 2,0

Exhibit 9. Value of MI Deliverables

GIA White Paper 3/2010 MI Trends 2015 – The Future of Market Intelligence 12 Additional trends and developments that were raised in the survey through the questions and 3/2010 open comments included

• Increasingly visualized intelligence deliverables: Using graphs, dashboards and score cards to visualize the analytical output of the MI process as opposed to delivering results in plain text and figures format. This trend again ties in with resourcing the intelligence function adequately: Producing insightful visuals requires time, highly analytical thinking and a solid understanding of the company’s business fundamentals. GIA White Paper Paper White GIA • Measuring the impact of the MI deliverables: Related to the increased investment in the intelligence program, companies are becoming increasingly aware of the necessity of keeping track of the benefits. In the future, the survey respondents expected to see more of measures such as communicated success stories, direct feedback requests, and usage statistics of certain intelligence deliverables.

• Adding the Early Warning & Opportunity perspective to existing MI deliverables: Interpret- ing market signals and analyses from the perspective of both negative and positive risks for the company will increase the strategic value of the intelligence deliverables. The early warning and opportunity perspective will also provide a framework for assessing the rela- tive importance of different developments in the operational environment of the company.

• Personalized delivery: While it is not meaningful for the intelligence team to even aim at personally delivering all intelligence output, much of the greatest strategic value is typically created not alone by either decision-makers or intelligence professionals, but in groups of both. Therefore as the intelligence deliverables develop towards increased sophistication, the survey respondents expect to see more and more of briefings, workshops, and informal discussions as the delivery format of strategic level intelligence output.

• Decision-point intelligence: Referring to the already discussed topic of the linkage between intelligence programs and business processes, we need to once again stress that decisions drive intelligence efforts. Therefore the intelligence deliverables will need to be built around the decision points that the intelligence input is needed for. This is not possible without an open dialogue and through needs analysis conducted jointly by the intelligence team and the decision-makers themselves.

5. Intelligence Organization 2015

Intelligence Organization - Introduction Organizing the resources for producing the intelligence deliverables calls for balancing between the external and internal intelligence networks: What should be purchased from which external sources (and what will be the budget), and who should be involved in producing the deliverables internally. Also, a decision has to be made about the degree of centralization vs. decentralization of the intelligence program; There are numerous examples of companies where the entire intelligence function is operated from the headquarters, whereas other companies do not have any HQ-level MI coordination at all. This naturally depends on the size of the company: Some companies may be so large that for instance regional units alone are sizable enough to have their own centrally coordinated intelligence programs, or the company’s business lines are so different that it justifies them having independent intelligence programs.

GIA White Paper 3/2010 MI Trends 2015 – The Future of Market Intelligence 13 Exhibit 10. An intelligence organization combines internal and external resources

BUSINESS NEWS INDUSTRY MARKET UNPUBLISHED INFORMATION SERVICES CONSULTANTS RESEARCH INFORMATION DATABASES GIA White Paper 3/2010 Paper White GIA

6. UTILIZATION & FEEDBACK 1. NEEDS ANALYSIS

5. DELIVERY 2. COVERING Intelligence ProcessSECONDARY INFORMATION SOURCES

4. ANALYSIS 3. PRIMARY RESEARCH

GROUP

BUSINESS BUSINESS BUSINESS AREA 1 AREA 2 AREA 3

trends 2015 - Survey results Based on the survey results (Exhibit 11), there’s growth to be expected in MI investment following the initial impact of the economic downturn. However, it is good to remember that many companies did not downsize their intelligence programs in the fi rst place, as there has been an urgent need for companies to quickly identify new business opportunities to fi ll in the revenue gaps generated by the recession. As for the split of resources, the survey results suggest that there’s a balance between hiring professionals in-house and outsourcing parts of the process.

How do you anticipate the investment in mI resources to develop in your organization?

Investing in MI as a whole

Hiring MI professionals in-house Increase signifi cantly (+2) Increase moderately (+1) Oursourcing parts of the Remain the same (0) intelligence process Decrease moderately (+2) Decrease signifi cantly (+2) -1,0 0,0 1,0 2,0

Exhibit 11. Development of MI investment towards 2015

GIA White Paper 3/2010 MI Trends 2015 – The Future of Market Intelligence 14 Interestingly, many respondents expected the degree of centralization to increase in the intel- 3/2010 ligence organization (Exhibit 12), while at the same time the open comments suggested the opposite; i.e. that the level of decentralization would increase.

The polarization of the responses can perhaps be explained by the increasing maturity of the intelligence programs in many responding companies: On one hand, centrally coordinating, branding and facilitating the intelligence program gained a lot of support – not the least since this typically also means the program has top management’s strong support. On the other hand,

as the intelligence program becomes increasingly embedded in the organization, local and unit- Paper White GIA specific intelligence activities also become more systematic, which in turn speaks of decentralization of the intelligence program. As a conclusion, both the centralization and decentralization trends can simultaneously take the corporate intelligence program towards increased sophistication.

Increasingly independent corporate level MI teams Some respondents to the survey indicated that towards 2015, MI units might be becoming more independent than before, being no longer organized under a specific function such as business development, marketing or strategic planning. This development will likely make the intelligence teams increasingly neutral stakeholders in the organization, enabling their independent support to different business processes, which should serve the entire company’s interests.

What will best describe the development of the organizational structure of MI in your company over the next 5 years?

Centralization of MI activities

Decentralization of MI activities Increase significantly (+2) Outsourcing of MI activities Increase moderately (+1) Remain the same (0) Insourcing of MI activities Decrease moderately (+2) Decrease significantly (+2) -1,0 0,0 1,0 2,0

Exhibit 12. Expected organizational dynamics of the intelligence program towards 2015

Outsourcing of basic MI activities to increase, while the internal focus will be on high-impact deliverables The survey respondents expected to see outsourcing activities around the following activities:

• Collecting information from external sources Monitoring news, blogs, websites and analysis reports will typically be outsourced. Increasingly, companies are also looking to outsource the management of their entire information source portfolio in the interest of optimizing subscription costs.

• Structuring information While IT tools already provide some help in structuring the regular flow of information, much of the work still needs to be done manually, and companies expect this part, too to be a potential outsourcing area in the future. Examples of outsourced deliverables may be company or industry profiles, regular sales leads reports, or monthly industry briefings.

GIA White Paper 3/2010 MI Trends 2015 – The Future of Market Intelligence 15 • IT tools for MI 3/2010 Despite the initial interest of many companies to tweak existing corporate IT tools to also serve MI purposes, the survey results suggest many have realized that developing and maintaining such in-house tools is so resource-consuming that the company’s internal resources are best used elsewhere. Hence IT tools were viewed as one of the typical areas where outsourcing would be considered.

• MI process set-up

Especially companies with little previous knowledge about the intelligence processes and Paper White GIA tools typically consider using external help in setting up the intelligence program. With the increasing maturity of the profession, however, it is also typical for a company to hire an experienced MI executive from another company to build up the capability, once the mandate has been given by the management.

• Additional viewpoints and methodologies from outside of the own company Many of the respondents to the survey also saw value in engaging external consultants in the high level analytical work: These companies considered that outsourcing would bring in additional analytical viewpoints and specific methodological skills such as scenario planning or war gaming.

GIA White Paper 3/2010 MI Trends 2015 – The Future of Market Intelligence 16 6. IntEllIGEncE tOOlS 2015

Intelligence tools: Introduction While the intelligence activity always relies on human processes rather than on technology, software tools are vital for the success of an intelligence program in that they greatly enhance the ef- fi ciency of storing and delivering the intelligence that is being produced. Software tools are also something tangible, which make them a great marketing tool for the intelligence deliverables GIA White Paper 3/2010 Paper White GIA and the entire intelligence program.

Software tools are also essential for the continuity of the intelligence activity at times when either the producers or users of intelligence change. In addition, software tools facilitate two- way fl ow of information by encouraging the user base to not only use intelligence but to produce content as well.

Exhibit 13. Screenshots of an intelligence software tool

An intelligence software tool should provide a single user interface to fi ltered intelligence content from internal and external sources. A technology tool specifi cally designed to support intelligence processes is typically linked with the organization’s intranet and hosted either in the company’s own IT infrastructure or by an external service provider.

GIA White Paper 3/2010 MI Trends 2015 – The Future of Market Intelligence 17 Trends 2015 - Survey Results 3/2010 The top four trends that surfaced from the survey results regarding the respondents’ preferences of receiving information in the future were

• RSS feeds to individual desktop • Information feeds from Google or other free information sources to the desktop • using smartphones for MI purposes • using video materials (through e.g. YouTube) for MI purposes GIA White Paper Paper White GIA At the same time, delivering information in paper format or through radio and television was expected to further decrease in volume.

How do you expect your own preferences to develop over the next 5 years regarding receiving business information?

Television or radio

Podcasts (audio)

Webcasts (video)

Newspapers in paper format

Websites of newspapers

Email newsletters from newspaper websites

Google News or other free news aggregators

Free-based news aggregators like Factiva or...

RSS feeds on my desktop

Twitter iPone applications

In my car (radio, television, integrated news reader on....) Increase significantly (+2) Other mobile device Increase moderately (+1) Remain the same (0) Other Decrease moderately (+2) Decrease significantly (+2)

-1,0 0,0 1,0 2,0 Exhibit 14. Development of MI-related IT tools

GIA White Paper 3/2010 MI Trends 2015 – The Future of Market Intelligence 18 The survey also looked into the technologies that the respondents expected to be in MI use in 3/2010 the future (Exhibit 15), with the result that in addition to smartphones, crowd forecasting tools, Microsoft SharePoint and social media platforms will shape the way intelligence is being produced and communicated.

How do you expect new technologies to change the way business information is shared in your organization over the next 5 years? Paper White GIA

Microsoft SharePoint

Twitter, Facebook, or other public social media

BlackBerry, iPhone or some other mobile devices eReaders such as Kindle

Film clips & YouTube type of applications

Crowd (group) forecasting (group analysis conducted by tools that support it)

Internally developed IT tools for Increase significantly (+2) collaboration (please specity) Increase moderately (+1) Remain the same (0) Other Decrease moderately (+2) Decrease significantly (+2) -1,0 0,0 1,0 2,0

Exhibit 15. Technologies that will have an impact on MI activities

Several tools and technologies also provoked commentary in the survey:

• Collaborative tools: Wikis, blogs and crowd forecasting The internal use of wikis around for instance competitors, customers or key markets will increase towards 2015. The technology of course only provides the platform, however with people growing increasingly used to being part of virtual communities, the survey respondents expected the internal wikis to be adopted rather rapidly. Crowd forecasting tools are also emerging rapidly, as people have started to see their value in quickly facilitating the co-creation of insights on relevant business topics. Finally, blogs are not a new phenomenon, but their use for MI purposes is still in its infancy. The potential future impact of blogs is huge as people in general tend to be more interested in provocative viewpoints and opinions than plain newspieces and neutral business analyses.

• Artificial intelligence and desktop text mining tools While the technical tools to aid automated analysis have been under discussion for long already, there are few signs yet of any tangible developments in the area. The interest is there, however, especially as the intelligence teams are looking forward to drive their own work towards drawing analytical conclusions and discussing them with management rather than spending time on the early phases of analyzing data.

GIA White Paper 3/2010 MI Trends 2015 – The Future of Market Intelligence 19 • Geographical Information Systems (GIS) tools for providing geo-demographical and 3/2010 competitor data The GIS applications to provide geo-demographic data about customers (and competitors) have gained ground rapidly over the last few years, and their value as an MI tool has subse- quently increased. Further growth was expected in the survey results as well.

• Integration of different technical tools With most companies already looking at several separate systems that all cater to intel-

ligence needs (CRM systems, MI/CI software, intranets, social media platforms, etc), Paper White GIA increasingly many are also seeing the necessity to integrate these tools, at the very least by arranging for a single point access to all systems.

7. Intelligence Culture 2015

Intelligence Culture: Introduction Intelligence culture is essentially the glue that keeps the entire intelligence operation together, and by the very definition of culture, it is born and nurtured inside the organization. Perhaps the most important element in gradually generating an intelligence culture in any organization is senior management’s articulated support to the activity. Other important building blocks are demonstrated benefits of the activity as well as successful internal training and marketing efforts. These together typically take the organization from first being merely aware of the intelligence program through accepting it and recognizing its value to finally assisting the intelligence team in co-creating the insights that the company needs in order to stay competitive in the marketplace.

Exhibit 16. The elements and evolution of a corporate intelligence culture

Time Assistance

Acceptance

Awareness

MI BRANDING

GIA White Paper 3/2010 MI Trends 2015 – The Future of Market Intelligence 20 Trends 2015 - Survey Results 3/2010 The importance of executive commitment and active internal marketing of the intelligence program were also reflected in the survey results, suggesting that the above will continue to be the key success drivers for the intelligence program also in the future.

Please rate the most useful tools in developing a corporate GIA White Paper Paper White GIA (MI) culture

Executive commitment

MI Training for new employees

MI Training for all employees

Marketing of the MI activities within the company

Making MI deliverables recognizably differentiated by logo, name, report structure, etc.

Making people accountable for MI efforts in their personal assessments

Providing incentives such as prizes or social recognition Increase significantly (+2) Increase moderately (+1) Remain the same (0) Demonstrating the value of the MI output Decrease moderately (+2) to its users on an everyday basis Decrease significantly (+2) -1,0 0,0 1,0 2,0

Exhibit 17. Tools for developing the intelligence culture in the future

An intelligence culture, like culture in general, is much about social cohesion, common beliefs and common behavior. The fundamentals such as management’s support and marketing efforts will continue to drive the intelligence culture, but an interesting addition will be brought by not the social media tools themselves, but by people growing familiar with exposing their thoughts and views to large virtual audiences. The survey results indicate that this trend might bring significant changes to the cultural side of corporate intelligence activities, going forward.

GIA White Paper 3/2010 MI Trends 2015 – The Future of Market Intelligence 21 8. Scenarios for MI towards 2015 3/2010

In the GIA Conference 2010 organized in Helsinki, Finland in June 2010, a one-day scenario workshop was conducted on the topic of “MI Scenarios towards 2015”. The workshop involved intelligence practitioners from several countries and companies, and the idea was to come up with alternative development paths that the intelligence industry may follow over the next few years.

From a range of uncertainties identified in the GIA Trend 2015 survey, two were selected for the GIA White Paper Paper White GIA workshop purposes: The internal users of MI in a company, and the future availability of public information sources that are currently in use.

Three scenarios were constructed based on the uncertainties. One expected MI to serve the entire organization in the future (this scenario was named Collaboration). The second one assumed top management would be the primary internal user group of MI (this scenario was named Consulting). Both of these scenarios assumed relatively unrestricted availability of public information, either fee-based or free of charge.

In the third scenario, named the Dark Ages, there is limited supply of information available from public sources owing to several reasons. In this scenario, the working environment for MI would differ radically from the two other scenarios.

OPEN FLOW OF INFORMATION • Lots of solutions for automation • Relying on open source information

COLLABORATION CONSULTING

MI SERVES ALL PROCESSES MI SERVES TOP MANAGEMENT • Lots of internal customers EXPECTATIONS • Few internal customers • Detailed deliverables • Holistic analysis

DARK AGES

RESTRICTED FLOW OF INFORMATION • Few possibilities for automation • Need for primary research

Exhibit 18. The Future of MI Scenarios

Most if not all of the trends presented earlier in this paper support scenarios 1 and 2, with the unrestricted availability of information. Therefore, it is interesting to look at scenario 3 more closely as the “improbable yet impactful” alternative.

GIA White Paper 3/2010 MI Trends 2015 – The Future of Market Intelligence 22 What limited access to information would mean in practice: 3/2010 • News media setting up pay walls for accessing news • Social media content not widely shared (company policies, privacy concerns) • Companies have adopted a stricter policy with regards to distributing information about themselves, both internally and externally • Information providers implement stricter rules for using their products • Regulators launch stricter rules about collecting, publishing and distributing people or company-specific information, or both

• Information warfare: Internet under frequent attacks by terrorists to disrupt usage Paper White GIA

Impact and implications • Need to look for and rely on informal sources • Need to spend more time on verifying data • Need to construct analyses from very small bits and pieces • Illegal information sources/providers might emerge • More time and resources will be required • New skills demanded from MI specialists • Scope of MI needs to be narrow and prioritized • Tools for automated information collection and processing are not developing

Scenario 3, should it materialize, will be a tough challenge to handle. It will practically mean that the MI organization needs to rely on internal sources of information to a much greater extent than before. Primary information collection would also dominate the information collection process, significantly increasing the costs of the intelligence program.

For the time being, MI developers mainly focus on scenarios 1 and 2, and do so for solid reasons. However, it is good to be aware of scenario 3 in order to keep the radar out for any early warning signals about this scenario becoming reality, however improbable it may seem now.

GIA White Paper 3/2010 MI Trends 2015 – The Future of Market Intelligence 23 Global Intelligence Alliance Intelligence Global

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