Market & Competitive Intelligence in Large Companies Global Study 2007
The Global Intelligence Alliance (GIA) has renewed a Global Market Intelligence Study on large companies; the first study was conducted in 2005 and it is now one of the most comprehensive, if not the most comprehensive, global Market & Competitive Intelligence study based on manual interviews.
For this report, 281 companies were interviewed in order to identify the present status, organization, IT tools and future outlook of Market Intelligence activities.
Companies from the following countries took part in the study: Belgium, Finland, UK, the Netherlands, United States, India, Brazil, Germany, and Spain.
Member companies in the Global Intelligence Alliance in these countries were responsible for data collection.
Market Intelligence is currently still a relatively nascent practice within companies, however, across all the markets companies do appear to conduct all forms ofMarket & Competitive Intelligenceactivities (continuous monitoring, regular reviews, ad-hoc reports).
What even many of the most advanced corporations’ lack however, is a process for continuous tracking of strategic issues. This White Paper advocates that a strategic Early Warning / Opportunity system should be integrated with the above mentioned strategic analysis methods in order to monitor, anticipate and affect strategic issues.
Section Overview:
The purpose of this Market Intelligence in Large Companies – Global Study 2007 is to develop a greater understanding of not only how large international companies conduct intelligence activities but also of global intelligence development in general. The aim is also to allow other companies to benchmark their own MI activities in order to understand how to best improve their own MI situation.
The Global Market Intelligence Study was first carried out in 2005 and received much interest.
The aim now is for the study to be carried out once every two years in order to develop a longitudinal
research project on a global scale. What makes the Global Market Intelligence Study unique is that it is a global research project conducted by people from a wide number of countries. Also, the fact it is an interview study distinguishes it from survey-based research; the participants have had the opportunity to discuss and ask questions and consequently we believe that this will make the result richer and provide a more comprehensive picture of the issue in question.
The initial hypothesis was that MI should get an increasing amount of interest due mainly to the following global business trends:
• Increasingly dynamic markets – shorter product life cycles, new entrants, faster development and diffusion of new technology, etc.
• Globalization – creates new business opportunities and threats.
• Need for efficiency in all areas of business – even in information collection and analysis.
• The general need for business information from the external business environment has increased both for top-management and most white-collar employees.
Industry Profiles
Automotive
The automotive industry is a forerunner regardingMarket & Competitive Intelligenceactivities. The respondents from this industry indicated a long history and high level ofMarket & Competitive Intelligencepenetration. Sophisticated tools were used
the level of utilization ofMarket & Competitive Intelligencewas high. This results in a high level ofMarket & Competitive Intelligenceintensity and sophistication. Future investments followed the global trend
Energy
The energy industry has a shortMarket & Competitive Intelligencehistory. This is probably due to protectionism and government monopolies in the past, which has reduced the need for MI. The utilization ofMarket & Competitive Intelligenceand
organization scored around average.Market & Competitive Intelligenceis clearly just coming into the industry.Market & Competitive Intelligenceintensity and sophistication is to increase significantly.
Finance
The Finance industry has an establishedMarket & Competitive Intelligenceactivity and culture. The level of sophistication is, however, below the global average. This results in a moderateMarket & Competitive Intelligenceintensity. Future development is expected to follow global trends
Healthcare
In this study, healthcare was well below average concerning the penetration ofMarket & Competitive Intelligenceactivities. It also scored below average regarding the number of years in which companies have conductedMarket & Competitive Intelligenceactivities. The sophistication was also below global average. This results in a relative position that is below average regardingMarket & Competitive Intelligenceintensity. Future development was nevertheless above global average.
ICT
The responses from the ICT industry indicated a relatively short history ofMarket & Competitive Intelligenceactivities with a moderate level of penetration. Utilization ofMarket & Competitive Intelligencewas average and the industry show above average scores regarding sophistication. Future expectedMarket & Competitive Intelligenceintensity was below average.
Manufacturing
The manufacturing industry scored average history and penetration The replies indicated well organizedMarket & Competitive Intelligenceactivities. Competence development and investments were above the global average. FutureMarket & Competitive Intelligenceintensity is expected to increase above average.
Mining
The currentMarket & Competitive Intelligenceintensity is in lines with the global average score. Projected investments (MI in general andMarket & Competitive IntelligenceIT) were below average This results in a moderate future growth regardingMarket & Competitive Intelligenceintensity.
Retail
The respondents from the retail industry were scoring similar to global averages on most issues. The expectedMarket & Competitive Intelligenceintensity is however expected to grow significantly.
Service Sector
The sophistication regardingMarket & Competitive Intelligenceactivities were below average. The investments were however above average. This results in aMarket & Competitive Intelligenceintensity that currently is in parity with the global average. FutureMarket & Competitive Intelligenceintensity is however expected to grow considerably.
Transport
Replies from the transport industry showed thatMarket & Competitive Intelligencehas not a long history. The activities seemed, nevertheless, to be well organized. The investments inMarket & Competitive Intelligenceare expected to be moderate. This results in a slowMarket & Competitive Intelligenceintensity increase compared to the global average concerning this issue.
The Global Intelligence Alliance (GIA) is a global network of business research and Competitive Intelligence (CI) consulting companies. The series of GIA White Papers is a means for the GIA and its clients and partner companies to share knowledge on key topics within the field of Competitive Intelligence. Please feel free to give us feedback on the White Papers by sending email to info@globalintelligence.com.