market intelligence playbook · •to describe how value is created within a company • to...

1COPYRIGHT © M-BRAIN 2020

MARKET INTELLIGENCE PLAYBOOK


CONTENT

Market Intelligence Playbook 3

TOOLS FOR COMPANY ANALYSIS 4

Company Value Chain Analysis 5

Critical Success Factor Analysis 12

SWOT Analysis 16

Core-Context Analysis 24

TOOLS FOR INDUSTRY ANALYSIS 28

PESTEL Analysis 29

Page


MARKET INTELLIGENCE PLAYBOOK

M-Brain’s Market Intelligence Playbook helps our clients with their analysis work. The analysis models included in the playbook are particularly useful for understanding the company’s internal operational environment and making optimal use of it. The playbook offers insight into the following areas:

- company value creation- critical success factors- strengths and weaknesses, threats and opportunities facing the company- main differentiating activities that customers appreciate- major industry-level trends affecting businesses

For best results on how to utilize the models, gather a working group of 3 to 5 people, including a facilitator, take notes and reserve a minimum of 1,5 hours, depending on the exercise.


TOOLS FOR COMPANY ANALYSIS


COMPANY VALUE CHAIN ANALYSIS


O B J E C T I V E

• To describe how value is created within a company

• To identify the company activities that are most valuable and the ones that could be improved to provide competitive advantage.

• To identify linkages in activities and utilize opportunities to reduce costs or increase differentiation

Adapted from Michael Porter’s value chain model by M-Brain.

Analyze internal company activities and recognize which activities are the most valuable


COMPANY VALUE CHAIN ANALYSIS ● I N S T R U C T I O N S (1/2)

FOR THIS EXERCISE YOU NEED:

• A facilitator

• Working group (3-5 people)

• Post-it notes, pens, whiteboard or other wall space

• Time: 1,5+ hours

1 ANALYZING COSTS: • Divide your organizational activities into separate parts (Primary Activities: e.g. Purchasing,

Production – Secondary Activities: e.g. HR management, Technology development)• Establish the relative importance of different activities in the total cost of the product or

service• Compare costs by activity• Identify cost drivers• Identify linkages• Identify opportunities for reducing costs

C O M P A N Y V A L U E C H A I N

C O M P A N Y I N F R A S T R U C T U R E

H U M A N R E S O U R C E M A N A G E M E N T

T E C H N O L O G Y D E V E L O P M E N T

P R O C U R E M E N T S

P U R C H A S I N G P R O D U C T I O N D I S T R I B U T I O NM A R K E T I N G

& S A L E S S E R V I C E

S E C O N D A R Y A C T I V I T I E S

P R I M A R Y A C T I V I T I E S


COMPANY VALUE CHAIN ANALYSIS ● I N S T R U C T I O N S (2/2)

2. INCREASING DIFFERENTIATION• Construct a value chain for the

company and the customer• Identify the drivers of uniqueness in

each activity• Select the most promising

differentiation variables for the company

• Locate linkages between value chain of the company and that of the buyer

• Identify for differentiationC U S T O M E R V A L U E C H A I N









C O M P A N Y V A L U E C H A I N


















COMPANY VALUE CHAIN ANALYSIS ● E X A M P L E

€15 MImportant

€45 MVery important

€20 MImportant

??

?


COMPANY VALUE CHAIN ANALYSIS ● E X A M P L E

Activity:Purchasing

Activity: Production

Activity:Distribution

Activity: Service

Activity: Marketing & Sales

Activity… Activity… Activity: Purchasing

Activity: Human Resources Management

Activity…

driver driver driver driverdriver? Location of plants near suppliers and dealers

Customer service level expectations

?


COMPANY VALUE CHAIN ANALYSIS ● T E M P L AT E

Utilize this template to analyze costs and

to map ways to differentiate










COMPANY VALUE CHAIN ANALYSIS ● T E M P L AT E

DRIVERS OF UNIQUENESS:

List the drivers of uniqueness for each

activity

driverdriverdriver

Activity…

driverdriverdriver

Activity…

driverdriverdriver

Activity…

driverdriverdriver

Activity…

LINKAGES TO CUSTOMER

VALUE CHAINDrag and drop the arrows to portray

the existing linkages between the

company and customer value

chains

driverdriverdriver

Activity…

Activity… Activity… Activity… Activity…Activity…

driver driver driver driverdriver


CRITICAL SUCCESS FACTOR ANALYSIS


O B J E C T I V E

• To identify a limited number of factors that are of vital importance to achieve success

• To benchmark the company and competitors with regard to the key factors

Adapted from multiple sources by M-Brain.

Identify your most critical success factors and assess your performance in them


1. Identify a limited number of factors that are critical to ensure a competitive position in the industry.

• On what basis do customers choose between competing companies?

• What must a company do to be competitive (resources, capabilities)?

2. Benchmark your company (and competitors) with regard to the key factors

CRIT ICAL SUCCESS FACTOR ANALYSIS ● I N S T R U C T I O N S


• A facilitator




Technology• Scientific research• Product innovation

Manufacturing• Low-cost production efficiency• Quality • Low-cost location • High productivity • Flexibility

Skill• Highly trained personnel• Know-how• Service mindedness• Innovativeness

Organization• Management style• Responsibility• Effective use of IT

Distribution• Strong network• Low cost• Fast delivery

Marketing• Breath of product line• Brand name• Customer service• Fast order filling• Guarantees

C O M M O N T Y P E S O F C R I T I C A L S U C C E S S F A C T O R S


CRITICAL SUCCESS FACTOR ANALYSIS ● E X A M P L E

WEAK AVERAGE STRONG

Company rating

Factor

Factor

Factor

Factor

Factor

Factor

Factor

Factor

Factor

Factor

Fast delivery

24/7 customer service

?

?

?

?

?

?

?

?


CRITICAL SUCCESS FACTOR ANALYSIS ● T E M P L AT E

WEAK AVERAGE STRONG

Factor

Factor

Factor

Factor

Factor

Factor

Factor

Factor

Factor

Factor

FACTORSFill in the success factors you have

identified as being critical to your

organization

COMPANY RATING

Assess your organization’s rating

for all of the identified factors on

the scale weak –average – strong.

Company rating


SWOT ANALYSIS


O B J E C T I V E

• To identify company strengths that the company can use to make use of opportunities in its operating environment

• To become aware of company weaknesses and what threats to its operations can be found in its environment

Adapted from multiple sources by M-Brain. SWOT analysis has been one of the key strategic management tools since 1970’s. M-Brain provides some additional elements to utilize when applying SWOT.

Identify and analyze internal and external factors that impact the viability of your performance s

t

w

o


SWOT ANALYSIS ● I N S T R U C T I O N S

1. Identify the strengths and weaknesses of your organization, and the opportunities and threats in the environment. Use the following questions to identify strengths, weaknesses, opportunities and threats:

• What are the main things that you think your company is better in than your competitors?

• What are the main things that you think your company is worse in than your competitors?

• What are the really big threats facing your company in the environment?

• What are the major opportunities that are being presented to your company?

2. Assess your own performance and the importance of the strengths and weaknesses you have identified.3. Use the opportunity and threat matrixes to evaluate and illustrate your findings.


• A facilitator




S T R E N G T H SW E A K N E S S E S

O P P O R T U N I T I E ST H R E A T S

I n t e r n a l a n a l y s i s

E x t e r n a l a n a l y s i s

S Y N T H E S I S


S T R E N G T H S W E A K N E S S E S

O P P O R T U N I T I E S T H R E A T S

S

O

W

T

SWOT ANALYSIS ● E X A M P L E # 1

• High quality• High profitability

• Accelerating international market growth

• Government subsidies• Exit of competitor X• ...

• Long delivery times• Poor flexibility to respond to

customer needs• …

• New entrants to the industry• Risk of economic downturn in local

market• ...


SWOT ANALYSIS ● E X A M P L E # 2

• Market growth • Governmentsubsidy

• Exit of competitor X

High

Low

High Low

PR

OB

AB

ILIT

Y

A T T R A C T I V E N E S S

• New entrants

• Economicdownturn

High

Low

High Low

PR

OB

AB

ILIT

Y

S E R I O U S N E S

O P P O R T U N I T Y M AT R I X

T H R E AT M AT R I X

F A C T O R O W N P E R F O R M A N C E I M P O R T A N C E

High quality Major strength High

High profitability Neutral Medium

Timely delivery Minor weakness Low

Flexibility Major weakness High

S T R E N G T H S / W E A K N E S S E S


S T R E N G T H S• X• X• X

W E A K N E S S E S• X• X• X

O P P O R T U N I T I E S• X• X• X

T H R E A T S• X• X• X

S

O

W

T

SWOT ANALYSIS ● T E M P L AT E # 1

Identify the strengths and

weaknesses of your organization, and the opportunities and threats in the

environment.

Fill them into the template.


F A C T O R O W N P E R F O R M A N C E I M P O R T A N C E

S T R E N G T H S / W E A K N E S S E S


Fill in the identified strengths and

weaknesses into the factor column.

Then assess you own performance on a

five-point scale:Major strength

Moderate strengthNeutral

Moderate weaknessMajor weakness

After that, assess how important that

factor is to your success on a three-

point scale:High

Medium Low


• X• X• X

• X• X• X

• X• X• X

• X• X• X


High

Low

High Low

PR

OB

AB

ILIT

Y

A T T R A C T I V E N E S SOPPORTUNITY

MATRIX

Fill in the opportunities you identified into the

matrix based on how attractive and how probable they are.


• X• X• X

• X• X• X

• X• X• X

• X• X• X


High

Low

High Low

PR

OB

AB

ILIT

Y

S E R I O U S N E S STHREAT MATRIX

Fill in the threats you identified into the

matrix based on how serious and how

probable they are.


CORE CONTEXT ANALYSIS


O B J E C T I V E

• Identify: Your company’s activities that create true differentiation in customers’ eyes (CORE), vs activities that are defined as CONTEXT, which your company needs to stay in business.

• Divide: Mission Critical vs Non-Mission Critical activities – whether activity shortfall creates a serious and immediate risk to revenue or not.

Origin of this analysis framework contributes to Geoffrey A. Moore.

Analyze what are your core processes/ activities/ deliverables/ tasks to win customers


CORE CONTEXT ANALYSIS ● I N S T R U C T I O N S

You can utilize this approach on a company level or business unit or team level1. List your company’s processes/ activities/ deliverables/ tasks 2. Place the activities on the matrix template, by weighting

which activities create true differentiation in customers’ eyes (CORE), vs activities that are not differentiating (CONTEXT)

3. Analyse and adjust activities on the matrix template, by weighting which activities are Mission Critical vs Non-Mission Critical (i.e. whether activity shortfall creates a serious and immediate risk to revenue or not)

Please note, the scale is relative.

To consider: • Ideally, you'll be able to move up the quadrant scale. If

you're currently working in 4, look for opportunities in 3. You'll know a lot about downstream impacts that will likely be useful.

• Similarly, if in Context, look at opportunities in Core. You're understanding of how to manage mission-critical processes at scale will help when deploying a differentiation at scale. You could also move the other way.


• A facilitator




3INVENT

4OFFLOAD

1DEPLOY

2CONTEXT

Core Context

Mission Critical activity

Enablingactivity

Process shortfall creates serious and

immediate risk

Differentiation that wins customers

All other

All other


CORE-CONTEXT ● EXAMPLE

3 INVENTRecruitment of skills AM&A screening of Z

4 OFFLOADCRM functionality

1 DEPLOY24/7 Service Capability

2 CONTEXT

Product development of XStrategy development in z

Core Context


Enablingactivity


immediate risk


All other

All other


CORE-CONTEXT ● TEMPLATE

3 INVENT 4 OFFLOAD

1 DEPLOY 2 CONTEXT

Core Context


Enablingactivity


immediate risk


All other

All other

THE 4 QUADRANTS1 Deploy: When the innovation is ready to be deployed it moves to this mission critical core quadrant.2 Context: The focus here is on managing mission critical processes as context at scale.3 Invent: Revenues aren't big enough to be mission critical but inventing is core to the company's future new products.4 Offload: Offloading non-mission critical processes frees up resources to move back to Quadrant 3 and therefore resources in 3 to move back to 2 and so on.


TOOLS FOR INDUSTRY ANALYSIS


PESTEL ANALYSIS


O B J E C T I V E

• To give you a comprehensive picture of the trends that surround you and may potentially affect your business

• To ensure that different aspects and angles of trends are considered (Political, Economic, Social, Technological, Environmental, Legal)

• To identify the trends and signals that have the biggest impact on your business – basis for building early warning and opportunity system to monitor trends

Build a comprehensive trend map and choose the most relevant trends for your business and industry

P E

T LE

S

Collected and adapted from multiple sources by M-Brain.


PESTEL ANALYSIS ● I N S T R U C T I O N S

1. Individually by each contributor in the working group: Make a long list of all applicable trends by listing all factors (i.e. trends and signals) that could potentially have an impact on your business or a chosen topic. Formulate the factors as concretely as possible to ensure that they are clearly understood.

2. Individually by each contributor in the working group: Use the PESTEL categorizations to sort the trends/factors you have listed.

3. Together with the working group: When combining the lists made by each contributor, make sure that you have a list covering all PESTEL categories (Political, Economic, Social, Technological, Environmental, Legal). Add trends/factors to complete the list.

4. For best results, working group contributors will do some secondary research prior the exercise to understand the topic well. This will ensure that no critical factors (i.e. trends and signals) are left out of the list.

You can make this analysis with post-it notes and whiteboard (Create a large table on the whiteboard / wall by placing all post-it notes under the relevant PESTEL category), or with computer/Excel sheet.


• A facilitator


• Post-it notes, pens, whiteboard or other wall space, OR computer and Excel sheet

• Time: 3+ hours


POLITICAL→ Extent and efficiency

of govt. bureaucracy→ Deregulation and

privatization policy→ Educational

philosophies and policies

→ Extent and observance of human rights

ECONOMIC→ Market size, GDP size

and growth→ Government budget

deficits or surpluses→ Import and export

duties→ Inflation rates→ Interest rates and

availability of credit→ Currency stability and

risks→ Dependence on

individual commodities

→ Trade deficits or surpluses

→ Disposable income levels

→ Energy availability and cost

SOCIAL→ Population

demographics and trends

→ Religious and ethnic differences

→ Rural/city population distribution

→ Quality and size of housing

→ Quality of health and primary education

→ Work ethic; quality of work life

→ Gender equality→ Crime, theft and

security→ Shifts in product and

service preferences→ Leisure preferences→ Future of work

TECHNOLOGICAL

→ Technological sophistication and readiness

→ Level of science, technology, engineering and mathematics (STEM) skills

→ Extent of digitalization→ Internet and

broadband penetration

→ Cyber risks→ Penetration of digital

banking and payment systems

→ Focus of private and government-supported R&D expenditures

ENVIRONMENTAL→ The implications of

seasonality, weather, climate

→ Threat of natural disasters

→ Quality of infrastructure

→ Extent and type of natural resources

→ Level and extent of pollution

LEGAL→ Antitrust laws and

policy→ Taxation laws→ Foreign ownership

laws and overseas trade regulation

→ Property ownership laws

→ Environmental protection laws

→ Open or restrictive labor laws

→ Law enforcement

P E S T E LPESTEL ANALYSIS ● I N S T R U C T I O N S


PESTEL ● EXAMPLE

L I S T O F F A C T O R SSkewed competition

Information security and data privacy

Availability / accessability / usability of data

Protectionism

Finland's position in global competition generally

Creative destruction

Business models in transformation

Increasingly monopolistic market structure

Ethics in applying new technologies

Talent acquisition (new expertise)

Gross domestic product in Finland

Future of welfare state

Earnings trend development

Scientific support / R&D

Adequate education

Data storage

Use of affordable sensors

Political stability in Finland

Green Internet

Pressure to increase productivity

…

First make a long list of factors possibly affecting business environment –then categorize and complement the factors with the PESTEL framework

POLITICAL ECONOMIC SOCIALTECHNO-LOGICAL

ENVIRON-MENTAL

LEGAL

• EU policies • Emerging markets• Loss of jobs• Automation of work• Pressure to increase

productivity

• Ageing population• Polarization• Rise of social media• Customer centricity• Customization of

services

• Cost of data• Efficiency of data

transfer• Smart everything• Remote accessibility

• Climate change• Sustainability• Limited natural

resources

• EU regulation

• Protectionism• Basic income• Political stability in

Finland

• Skewed competition• Finland's position in global

competition generally• Gross domestic product in

Finland• Creative destruction• Business models in

transformation• Increasingly monopolistic

market structure• Future of welfare state • Earnings trend development• Ecosystems• Platform economy• Loss of jobs• Reform of work• Automation of work• Pressure to increase

productivity

• Ethics in applying new technologies

• Polarization• Co-creation• Focus on individual

well-being• Adequate education• Age structure in

Finland

• Availability / accessibility / usability of data

• Scientific support / R&D

• Data storage• Use of affordable

sensors

• Green Internet • Information security and data privacy

• Loss of jobs• Talent acquisition (new

expertise)• Automation of work• Pressure to increase

productivity

• Polarization


PESTEL ● TEMPLATE

POLITICAL ECONOMIC SOCIALTECHNO-LOGICAL

ENVIRON-MENTAL

LEGAL


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market intelligence playbook · •to describe how value is created within a company • to...

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