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What's Up in MI?

Recent developments in the field of Market Intelligence

European Commission opens in-depth investigation
into Thomson’s takeover of Reuters

The European Commission has decided to open an in-depth investigation under the EU Merger Regulation into the proposed combination of Thomson of Canada and Reuters of the UK. The Commission’s initial market investigation indicates that the proposed merger would raise serious doubts as regards adverse effects on competition in several markets of the financial information sector. The Commission now has until 25 February 2008 to take a final decision on the matter.

On 3 September 2007, Thomson notified the Commission of its project to acquire Reuters’ activities through a dual listed company structure which would be controlled by Thomson.

The Commission’s initial market investigation highlighted that the concentration would raise competition concerns notably with regard to the supply of financial information, such as the provision of data-feeds, the access to specific financial information databases commercialised by the notifying parties, the access to real-time and aftermarket research (broker reports) and the provision of news services. Most of these products are predominantly used in off-trading floor activities of financial institutions.

Source: European Union, 8 October 2007

Study: 50 percent of companies have established CI functions within the last five years  

While it’s a relatively new function, Competitive Intelligence can have a long-lasting impact on an organization’s position in the marketplace. By delivering high-impact analyses on competitors’ products and operations, a high-functioning CI group can alert companies to emerging market opportunities or warn them about potential external risks.

Competitive Intelligence groups track an average of 60 products sold by competitors, according to new research by Best Practices, LLC. The report, which presents data for the full benchmark class and pharmaceutical segment, is based on insights gathered from 54 companies representing more than 12 different industries.

Some of the sample findings of the report include:
More than half of the organizations participating in the study established CI functions within the last five years.
Strategic planning and business development are the departmental homes where interviewed executives think CI should reside.
The average CI operating budget is $821,613, although budgets varied widely across study participants. The average salary for a CI head is $148,709.

Source: Best Practices LLC, 5 September 2007

Study: Many companies fail to train on critical skills to make decentralised market research structure work

Effective market research can be a compass that points to a company’s next market growth opportunity. Ineffective market research can send an organization in the wrong direction.

The issues are discussed in a study, “Developing the High-Performance Market Research Function”, by Best Practices, LLC.  By examining the practices of 85 companies across 20 industries, the study found that high-functioning market research organizations focus on optimizing their organizational structure, balancing staff workloads, cultivating career paths and development programs for employees.

In terms of effectively managing workloads, the study found that more than 60 percent of the participating firms annually manage 20 or fewer projects per market research professional. Market Research leaders noted in the research that projects vary greatly in complexity and effective management systems balance the project mix among the market research staff to optimize productivity.

Market research managers and executives across all industries can use this report to assess how their operations compare insofar as structure, project management productivity, investment per staff member and market research strategy. The findings were generated from surveys and interviews with 90 market research professionals at 85 companies.

Other key insights uncovered in field research include:
While 70 percent of benchmarked companies use a decentralized market research structure, they don’t train on critical skills to make cross-functional, decentralized structures work.
Only half of the benchmarked companies provide career paths for market research specialists or offer career opportunities within market research to high-potential employees.

Source: Best Practices LLC, 28 August 2007