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World Class Market Intelligence

How to Get More Out of Limited Market Intelligence Budgets

January 19, 2012. Ask any market intelligence director what his or her key challenge is, and it will almost always point to how to constantly deliver intelligence that is of strategic value to top management. Another common challenge is how to leverage internal networks; turning consumers of intelligence into active contributors. But as businesses grow more cautious with spending due to the anticipated slowdown in 2012, how can market intelligence teams tackle such challenges with fewer resources?

In late 2011, GIA hosted a forum and interviewed 11 senior market intelligence managers from leading companies in the USA. The industries represented by the participants ranged from energy and industrial to technology and financial services.

Participants agreed that it was possible to achieve world class standards in market intelligence with limited resources, as long as they are utilized optimally. In the 2011 Global Market Intelligence Survey by GIA for instance, it was observed that companies with world class market intelligence functions didn’t rely on more resources than their peers. Instead, they just deploy their resources better, such as having relatively larger internal networks to contribute to intelligence gathering.

The following captures some of the key points and suggestions made by the participants on how to make the best use of limited resources.

1. Develop an inhouse expert directory
One of the participating companies developed a ”Subject Matter Expert Directory” that has a list of 250 people outside of the intelligence function with direct or indirect expertise in critical knowledge areas for the business, who can act as “go-to” people for staff. This helps alleviate the direct resources and time needed from the intelligence team.

2. Share budgets
Where budgets across departments or divisions are limited, internal clients who have intelligence needs can be encouraged to share budgets. Alternatively, internal clients can also be asked to act as competitive intelligence contributors for other projects in the future, if their budgets cannot cover the full scope of the work they currently need done.

3. Actively develop relationships with key stakeholders
Make it a point to develop good relationships with key stakeholders, such as country managers who are already in-market, who will be able to provide valuable tips on what information is already available. A participant candidly said he learnt this important lesson after his Mexican country manager responded to a market report he presented by saying, “No kidding. I know that. I live here”.

4. Teach people how to gather the intelligence they need (self-help)
There is a saying, “Give a man a fish; you have fed him for today. Teach a man to fish; and you have fed him for a lifetime”. The same can be applied to managing a company’s market intelligence needs, if you find creative ways to teach internal clients how to find the information they need.

5. Say no or state the parameters clearly
Often, it is helpful to have a set process to run through for each request for market intelligence to ascertain its feasibility and to align expectations. You can start with saying something like, “Tell me everything you know” and then explain what you can do to help to fill the gaps, and how much money and time it will take. Moving forward, it is also important to explain that they are, in turn, expected to contribute to intelligence.

When some requests are over budget, it is necessary to simply turn them down.

6. Utilize workshops
Briefings and workshops are very helpful in transforming internal clients from being consumers to co-creators and hence, making the deliverables more impactful and more likely to be adopted.

7. Foster relationships with online communities
Market intelligence teams are looking for ways to leverage online communities and the “blogosphere” for insights. Try inviting experts or bloggers with specialist interests to participate in your internal forums and discussions.

8. Engage the sales force
One of the most effective and efficient routes to rapid development of the market intelligence function is to leverage a company’s sales force, and have sales staff act as you intelligence “antennae”. Find ways to incentivize or motivate them to contribute intelligence and make it easy for them to do so.

9. Outsource some activities
It is possible to outsource some market intelligence activities as a means to cut internal headcount costs. Market intelligence leadership should however, always strive to exercise some degree of control and provide a clear explanation on the scope where external consultants are involved.

10. Beware who to benchmark against
Lastly, one participant advised the group not to make the mistake of benchmarking your market intelligence function against local peers only. “When we were primarily a US-focused organization, we were approaching world class levels in how we operated our market intelligence. However, we suddenly realized we were no longer world-class when the company went global. We didn’t even know our Chinese competitors!” The best way to make the most of your budget is to ensure that your function is operating efficiently on a global, not local, basis.

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Global Intelligence Alliance (GIA) is a strategic market intelligence and advisory group. GIA was formed in 1995 when a team of market intelligence specialists, management consultants, industry analysts and technology experts came together to build a powerful suite of customized solutions ranging from outsourced market monitoring services and software, to strategic analysis and advisory.

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