Value of Market Intelligence Function Recognized in North America
November 22, 2011. North American companies are among the more advanced market intelligence practitioners, and the 2011 Global Market Intelligence Survey confirmed this. The prevalence of market intelligence programs is high in North America, with 84% of companies reporting to have a market intelligence function in place. How do North American companies operate their market intelligence functions?
In the Global Market Intelligence Survey conducted in March 2011, GIA looked at the current state of market intelligence in 192 large and mid-sized North American companies in the US and Canada, and compared the results with other regions.
Budgets and Value
The benefits of market intelligence are well understood in North America with 94% of survey respondents indicating that their company has benefitted from market intelligence. These numbers are comparable to responses in other regions. The difference, however, comes when looking at the perceived value of investment into market intelligence. In North America, 84% of companies indicated that their investments in market intelligence have paid off. This is higher than companies in Western Europe, indicating that North American companies recognize more value for their market intelligence programs and are more likely to invest further.
Average market intelligence budgets are quite high in North American companies, when compared to companies in Western Europe. There is, however, quite a bit of disparity between market intelligence budgets by industry in North America with two distinct segments: industries with companies whose market intelligence budgets are above $1.4 million (1 million Euros), and those with budgets ranging from $70,000 (50,000 Euros) to $420,000 (300,000 Euros).
Source: 2011 Global Market Intelligence Survey by GIA
*Click on image to enlarge
Given the recognized value of market intelligence, it is not surprising that North American companies have indicated their market intelligence programs are likely to grow and develop further over 2012-2013.
The majority of companies surveyed indicated they would increase their investment in market intelligence within the next two years.
Source: 2011 Global Market Intelligence Survey by GIA
*Click on image to enlarge
Overall, the perception of the value of market intelligence in North America, as evidenced by survey results and budget amounts, is quite high amongst many industries.
Market Intelligence Organization
In North America, market intelligence organizations are typically set up under strategic planning, business development or sales and marketing functions, with these being split relatively evenly. This organizational breakdown is similar to the breakdown found in European countries.
Source: 2011 Global Market Intelligence Survey by GIA
*Click on image to enlarge
A significant difference between North American and European companies emerges when looking at the number of layers between the market intelligence function and the CEO. Although North American companies typically have no more than four layers between the function and the CEO, there are more layers than with European companies. In all likelihood, this is due to the larger size of companies in North America and more complicated organizational structures. As evidenced above, the distance from the CEO does not seem to negatively impact market intelligence budgets; however some focus should be placed to close the gap in North America.
Source: 2011 Global Market Intelligence Survey by GIA
*Click on image to enlarge
Content production and clients
There are typically more than 1,200 people involved in market intelligence in North American companies. This is broken into the core team (10 people), others producing content for market intelligence (90 people) and internal clients (1,100 people).
Over 30% of internal clients are considered top management, so although there are typically many layers between the market intelligence function and the CEO, market intelligence is still significantly impacting those top executives and the CEO indirectly.
Source: 2011 Global Market Intelligence Survey by GIA
*Click on image to enlarge
Despite an average of 103 people involved in content production, at least one quarter of requests to the team go unfulfilled, indicating a need to either increase the number of those involved in content production, or increasing the budget for external contractors to complete the requests.
Source: 2011 Global Market Intelligence Survey by GIA
*Click on image to enlarge
Conclusion
Overall, North American companies place high value on market intelligence functions, and do allocate more of their budget towards market intelligence. However, more can be done going forward to further integrate market intelligence within top management and to ensure that market intelligence requests do not go unfulfilled.
For answers to how global companies run world class market intelligence functions, download the 2011 Global Market intelligence Survey white paper. Or request a presentation of the country results from the 2011 Global Market intelligence Survey by a GIA consultant today.
For
media inquiries,
send an email to
media(at)globalintelligence.com.
Download any of our Geographies White Papers.
More About GIA Industry Practices Automotive | Chemicals | Construction & Property Development | Consumer & Retail | Energy, Resources & Environment | Financial services | Private Equity | Logistics & Transportation | Manufacturing & Industrial | Pharmaceuticals & Healthcare | Telecommunication, Technology & Media
More About GIA Geographical Practices Africa
| Asia - Greater China
| Asia Pacific | Central & Eastern Europe | Latin America | Middle East | North America | Northern Europe | Russia & CIS | Western Europe
More About GIA Functional Practices World
Class Market Intelligence
| MI
for Strategic Planning
| MI
for Marketing & Sales
| MI
for Product & Innovation Management | MI
for Supply Chain Management
| M&A
and Partnering
More About GIA Services Monitoring Services | Strategic Analysis | Rapid Research | Intelligence Software | Intelligence Best Practices
More About GIA How we
work | Expertise
| Clients
| Case
Studies | Global
Locations | FAQ
About
Global Intelligence Alliance
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.
Today, we are the preferred partner for organizations seeking to understand, compete and grow in international markets. Our industry expertise and coverage of over 100 countries enables our customers to make better informed decisions worldwide.
