2011 0414 competitive intelligence - organisaation ulkoisen liiketoiminnan tiedonhallinta_klaus...
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© Metso
Metso Competitive Intelligence
Klaus Kianen
April 14th, 2011
© Metso
Content
• Metso in brief
• Definition of Competitive Intelligence
• Competitive Intelligence in Metso
• Questions and comments
2
© Metso3
Metso is a global supplier of sustainable technology and services
• Our customers operate in
the following industries:
- Mining
- Construction
- Power generation
- Oil and gas
- Recycling
- Pulp and paper
• About 28,500 employees in more
than 50 countries.
• 2010 net sales EUR 5.6 billion.
• Our shares are listed on NASDAQ
OMX Helsinki Ltd.
© Metso
27%
13%
11%7%4%
8%
30%
5%7%
24%
17%14%
28%
5%
4
Net sales by customer
industry
Net sales by market area
45%
35%
20%
Net sales by type
Balanced portfolioNet sales in 2010 EUR 5.6 billion
Mining
Construction
Power
Oil and gas
Recycling
Service business
Project business
Product business
Finland
Other Nordic countries
Other European countries
North America
South and Central America
Asia-Pacific
Africa and Middle EastPaperPulp
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Extensive offering to process industry
Oil and gas industry
• Automation and flow control
solutions
Recycling
• Metal recycling solutions
• Solid-waste recycling solutions
Pulp and paper industry
• Process solutions, machinery
and services for production of
pulp, paper, tissue and board,
including energy, and
chemical recovery solutions
• Process automation and flow
control solutions
Mining industry
• Mining and minerals processing
equipment and systems; wear
and spare parts and service
solutions
Construction industry
• Aggregates processing
equipment and systems; wear
and spare parts and service
solutions
Power generation
• Process solutions, machinery and
services for energy production
from solid and liquid fuels
• Process automation and flow
control solutions
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0
20
40
60
80
100
2009 2010
6
Net sales by segment
Net sales 2010 EUR 5.6 billion
We have three segments
36%
21%
36%
7%
Mining and Construction Technology
Energy and Environmental Technology
Paper and Fiber Technology
Group Head Office and others
Mining and Construction Technology
Energy and Environmental Technology
Paper and Fiber Technology
Personnel by segment
About 28,500 employees
Strategy review
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MegatrendsOpportunities for growth and change
Globalizing economy
Sustainability and climate change
Changes in demographics
Rise of emerging economies
• Redistribution of
economic power
• New competitors in
global markets
• Supply chains in
change
• Economic power of
emerging markets
• Growing global middle
class
• Local, cost-efficient
solutions
• Population growth and
urbanization
• Aging workforce in
developed markets
• Knowledge transfer and
training needs
• Eco-efficient solutions
• New energy solutions and
energy efficiency
• Increasing regulation
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Profitable growth strategy
9
We contribute to a more sustainable world by helping our customers to
process natural resources and recycle materials into valuable products.
Megatrends
Globalizing
economy
Changes in
demographics
Rise of emerging
economies
Sustainability and
climate change
Our targets
Profitability
Growth
Our strategic themes
Services
business
Environmental
solutions
Global
presence
© Metso
A global company with flexible operating models
10
Environmental
solutions
Global presenceServices business
Our ambition:
Strong growth close to
customers
Growth in emerging markets is
exceeding the pace of growth in
developed markets and will lead
to an increasing share in
emerging markets (>50%).
Our ambition:
Continuous development of
environmental solutions
Our customers invest in
sustainable solutions. Our R&D
activities focus on environmental
solutions.
1999
EUR
1,1 billion
2010
EUR
2,5 billion
1999
Not a
significant
role
2010
A key
role
1999
16%
2010
50%
Our ambition:
Annual net sales growth of
over 10% in the services
business
This exceeds the pace of growth
for project and equipment sales
and will lead to an increase in the
share of the services business
(40-60%).
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Metso in emerging and developed markets
Europe
Afrika and Middle East
Asia-Pacific
North America
South and
Central America
Developed
markets
Emerging
markets
Metso’s operating
countries
Net sales,
EUR million (2001)
Net sales,
EUR million (2010)
Share of Metso’s
net sales, %
Share ot the total
amount of personnel
2001, %
Share ot the total
amount of personnel
2010, %
Competitive Intelligence
© Metso
A cube of business information
• A cube of business information provides approach that can be used to examine different dimensions and fields of
business intelligence
Modified from the source Pirttimäki and Hannula
• The source of information: Information can be gathered
from outside of the company (e.g., newspapers, research
reports, the internet, trade publications) or from inside of the
company (e.g., employees, operational databases)
• The subject of information: If the content of the
information relates to the company itself, the subject is
internal, and otherwise it is external. The internal subjects
include the company’s own resources and capabilities,
financial ratios indicating the firm’s performance, sales
metrics for strategic business units, and customers’
profitability contribution. The external subjects include
competitor, customer, market, partner, and technological
information.
• The type of information: Existing information can be
quantitative or qualitative in nature. For quantitative
information (such as statistical information of cost and sales
numbers) is characteristic for being easier to obtain, use,
and interpret than qualitative information (e.g. motivation,
perception and attitude), which is more difficult to formalize
and communicate
13
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External business environment
Modified from the source Global Intelligence Alliance14
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Objectives of Competitive Intelligence
• Support the decision-making process on strategic and operational
level
• Gain competitive advantage by decreasing reaction time
• Improve long and short-term planning
• Real understanding of your market, competitors, suppliers, etc…
• Radar of the environment: identify threats and opportunities
”Anticipate and act versus react and regret”
15
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Levels of information
Modified from the source Rodenberg & Tillman
Decision making &
Action
Intelligence
Knowledge
Information
Data
quantitative qualitative
externalinternal
tacitexplicit
Business
Intelligence
Competitive
Intelligence
Organizational
Intelligence
16
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Oversupply of
Material X
because demand
is increasing in
Asia
0 %
2 %
4 %
6 %
8 %
10 %
12 %
14 %
0
200
400
600
800
1000
1200
1400
1600
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Perc
en
tag
es
Th
ou
san
d E
uro
s
Sales EBIT %
Imaginary example: Compination of business and competitive intelligence
17
6/2010 7/2010 8/2010 9/2010 10/2010 11/2010 12/2010 1/2011 2/2011 3/2011 4/2011 5/2011
Our sales 91,667 78,23 79,21 81,233 91,23 94,23 94,33 94,82 95,22 94,34 91,24 92,096/2010 7/2010 8/2010 9/2010 10/2010 11/2010 12/2010 1/2011 2/2011 3/2011 4/2011 5/2011
Our sales 91,667 78,23 79,21 81,233 91,23 94,23 94,33 94,82 95,22 94,34 91,24 92,09
Orders received
from Retailer X 1833,3 1464,6 1584,2 1764,7 1884,6 1934,6 1942,6 1866,4 1824,4 1565,7 1545,9 1401
6/2010 7/2010 8/2010 9/2010 10/2010 11/2010 12/2010 1/2011 2/2011 3/2011 4/2011 5/2011
Our sales 91,667 78,23 79,21 81,233 91,23 94,23 94,33 94,82 95,22 94,34 91,24 92,09
Orders received
from Retailer X 1833,3 1464,6 1584,2 1764,7 1884,6 1934,6 1942,6 1866,4 1824,4 1565,7 1545,9 1401
Material Y price 0,9062 0,6734 0,8309 0,9231 0,9819 0,9959 0,9108 0,8897 0,8378 0,704 0,6176 0,5378
40
50
60
70
80
90
100
110
120
Our sales Orders received from Retailer X Material Y price
Demand in China
start to increase after
their the 5 Year Plan
was announcement
Policy tightening
by China’s
goverment.
Demand decrease.Earthquake in
Japan. Japan
accounts about
20% of total
markets
Oversupply of
Material X in Asian
markets.
Asia accounts 80%
of total markets
Our decisions
and actions?
© Metso
Competitive Intelligence process
Specification of information needs:
• Information needs of decision makers
• Key intelligence topics and questions related to
issues, problems, and trends of the moment
• The most important phase of the whole process,
where the factors are designed and defined for
the other phases of the process
• Several decision-making levels and positions,
with varying information needs
18
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Competitive Intelligence process
Gathering:
• The phase where necessary information is
found by monitoring various sources in the
business environment and actually gathered
• Range of sources used should be sufficiently
numerous and varied so as to reflect the span
and scope of the organization’s interest.
• Information gathered can be qualitative or
quantitative and can be collected from a
company’s internal or external information
sources via primary or secondary research
methods
• Selection and use of information sources has to
be planned for, and continuously monitored and
evaluated.
19
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Competitive Intelligence process
Processing
• Gathered information is evaluated and analyzed
into actionable intelligence and competitive
intelligence products via various analysis
methods and tools
• The methods and tools used for analysis differ
with the character of the company, industry, and
competition objectives
• Information processing phase aims to evaluate,
interpret, and explain ongoing events and
signals from the standpoint of their meaning for
decision-makers and business activities
20
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Competitive Intelligence process
Dissemination
• Information is disseminated and communicated
to the organization’s decision-makers at the
right time, place and format with most suitable
tools
• Forms of e.g. report, a newsletter, or formal
meetings – or through a company’s intranet,
internal databases, or portal
21
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Competitive Intelligence process
Utilization
• Nonstop feedback is critical to optimize the
phases of the business intelligence cycle
• Outputs from the process serve as inputs
for the next rounds of the business
intelligence process
22
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Competitive intelligence analyses
23 Modified from the source Eduardo Bermudez
• SWOT
• BCG-Growth-Matrix
• Five Forces
• McKinsey 7-S
• PESTLE
• Scenarios
• War Gaming
• Patent Analysis
• Value Chain
• Financial Ratios and
Financial Statements
• Sustainable Growth Rate
• Benchmarking
• Competitor Profiling
• Four Corner’s
• Blindspot
Strategic Competitors
Environmental Financial
Competitive Intelligence in Metso
© Metso
Cube of Metso’s Competitive IntelligenceIn
dustr
ies
25
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Metso Competitive IntelligenceProducts and Services
26
Le
ve
l o
f a
na
lyzin
g
ad hoc weekly monthly quarterly annuallycontinuous
M&A
targets
ad hoc
reports
market
researchesnews
service
email alerts
news
review
market
conditions
customer and
competitor
analyses
industry
analyses
Comprehensive
environmental
analysis
market shares
strategy update
Comments
of market
conditions
© Metso
Questions?
27
”Change is the law of life. And those who look only
to the past or present... are certain to miss the
future.”
John F. Kennedy