ibb overview for agriculture & forestry sector
TRANSCRIPT
Make your decision with IBB Precision TM
Contact: Alan S. Michaels
© 2015 Industry Building Blocks
IndustryBuildingBlocks.com
The first company to define the
global economy at the granular
(five forces) industry level.
Industry Building Blocks
Company Overview version for:
Agriculture & Forestry
January 23, 2015
Market terminology was at too high a level to make
great decisions.
Big Data includes what?
Internet of Things means what?
You grow Vegetables – what type?
You need a Consultant; can you be specific?
You want Fruit Salad?
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© 2015 Industry Building Blocks Make your decision with IBB Precision™
Yesterday’s Problem
Sure, I’ll make fruit salad.
Damn if I know what kind of
fruit salad you want.
Lack of Precision
• Industry Building Blocks provides information on the top 17,000 industries, covering over 99% of the global economy.
• The format for each 7 page industry analysis is the same.
• Granular (line-of-business) industry information supports:
Corporate planning, including selecting new industries to enter
Business unit planning
Market segmentation and strategic marketing
Opportunity identification
Competitor analysis (and vendor and business customer analysis)
Merger, acquisition, and joint venture planning
• Make your decision with IBB precision TM
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© 2015 Industry Building Blocks Make your decision with IBB Precision™
Industry Building Blocks (IBB)
Provides Market Precision
Make your
decision with
IBB Precision TM
Improve opportunity identification, competitor analysis, and corporate and business unit strategy development
with and the
Industry Building Blocks Classification System TM (IBBCS)
IBB leverages Michael E. Porter’s five forces industry model
IBB precision is 15x more granular than NAICS
The IBB research team has been perfecting the Industry Building Blocks Classification System for more than 14 years. (Industry Building Blocks is a private company located in NY.)
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Industry (Line-of-Business Level) Information Is
Step #1 for Strategy Development
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A Global View of the World Economy by Industry
Is Logically Straightforward
Industry # Business 1 Business 2 Business 3 . . . Business N
1
2
3
4
5
…
N
There are “N” number of industries
There are “N” number of competitors (companies / brands)
Industry Name
Bus
1
Bus
2
Bus
3
Bus
4
Bus
5
Bus
N
1 Industry Data
2 Industry Data
3 Industry Data
4 Industry Data
5 Industry Data
…
17,000 Industry Data
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IBB Presents the IBB Global
Industry Game Board
Company Name (and Brand Names)
…
The Agriculture, Forestry,
Fishing & Hunting
Sector includes several
hundred IBB Industries.
By Industry
By Industry Sector
By Industry Subsector
By Industry Group
By Industry Subgroup
By Industry (17,000 industries)
By Company
By Top Parent Company
By Immediate Parent
By Brand
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IBB Industry & Company Segmentation
Is Built From the Bottom Up
By Industry Agriculture, Forestry, Fishing &
Hunting
Agricultural Farming
Fresh Flowers, Vegetables &
Other Crops Farming
Vegetable Farming
Mushroom Farming
By Company Giorgio Foods
Giorgio Fresh Mushroom Division
Giorgio fresh mushroom in bulk
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Companies Typically Compete In More Than One
Industry (Line of Business)
Industry # Company Names (and Brand Names)
1
Global 500 companies
compete, on average,
in 30 lines of business.
2
3
4
5
6
7
…
17,000
By using the: Industry Building
Blocks Classification System TM
any number of companies can be
analyzed side-by-side,
at the line-of-business level,
where true competition takes place.
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IBB Normalization of All Company Data
Enables Apples-to-Apples Comparisons
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The IBB Classification System TM Enables the Grouping
of Industries. One such example: by Broad Industry Sectors
Industry Sector Name # of Industries
1 Aerospace & Defense 446
2 Agriculture, Forestry, Fishing & Hunting 250
3 Auto, Truck, Train & Ship Manufacturing 598
4 Banking, Financial Markets & Financial Services 521
5 Chemicals Manufacturing 812
6 Construction & Engineering Services 472
7 Consumer Products Manufacturing 1,552
8 Consumer Services & Real Estate 596
9 Food Services & Lodging 127
10 Food, Beverage & Tobacco Manufacturing 1,083
11 Healthcare, Life Sciences & Pharmaceuticals 1,240
12 Insurance, Annuities & Healthcare Plans 374
13 IT, Business Consulting & Business Services 3,026
14 Media, Communications & Entertainment 930
15 Mining, Metals, Energy & Environmental Services 972
16 Other Commercial Products Manufacturing 2,629
17 Retail Trade & B2C eCommerce 265
18 Travel, Transportation, Wholesale & Distribution 368
19 Unlawful Industries & Industries to Be Classified 589
Total Number of IBB (Granular) Industries 17,000
Note
Group (and Target) Industries By:
Text in the Industry Name (Ex: “Consulting”)
Industry Revenue or Industry Attractiveness Score
Targeted Customers (Ex: “Food Manufacturers”)
Buyer Type (Ex: “Food Manufacturer Procurement Officer”)
Economic Trend (Ex: “Interest Rates for Farm Equipment”)
Technology Trend (Ex: “Internet of Things”)
And by thousands more selection criteria
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IBB Provides an Unlimited Number of Ways to
Group (and Target) the 17,000 Granular Industries
One or more products and / or services that
are direct substitutes
Sold by one or more businesses
To one or more external customers
Requires similar activities to produce the
product or provide the service (hence, “Natural Rice Farming” and “Organic Rice
Farming” are distinct industries)
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A Working Definition of “Industry” for Those Not
Familiar with Porter’s Five Forces Model
A Molecule & A Chemical Element
Examples of Industry Groups:
• Agriculture, Forestry, Fishing & Hunting
• Agricultural Farming
• Fruit Farming
• Stone Fruit Farming
An Example of An Industry:
• Apricot Farming
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The Difference Between An Industry Group &
An Industry, Is Like the Difference Between…
An “Industry
Group” =
Two or more
Industries
An “Industry”
Is the Right
Level for a
Five Forces
Analysis
Artichoke Farming Vs. Asparagus Farming
Hazelnut Farming Vs. Macadamia Nut Farming
Hog and Pig Farming Vs. Sheep Farming
Crab Fishing Vs. Lobster Fishing
Forest Logs Vs. Christmas Trees Production
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To Highlight IBB’s Precision, IBB Views Each of the
Industries Below as Distinct
Each of these
IBB “Industries”
Deserves a Full
Industry Analysis
IBB, Unlike Most Other Industry Classification Systems,
Does Not Lump Together Any of the Industries Below
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Each (7 page) Industry Analysis Provides the
Following Categories of Information
Industry Revenue Competitors, by: • Top Corporate Parent
• Immediate Parent
• Brand
Industry Attractiveness
Product Segments
Customer Segments
Channel Segments Industry Substitutes
End Users Industry Complements
Industry Trends Industry Vendor Types
Economic Trends Buyer Purchase Criteria
Technology Trends Industry Uncertainties
Geopolitical Trends & More, including keywords*
* For optional link to DiscoveryPatterns.com
Ability to segment any global market arena into its component industries to better address market opportunities.
Ability to group any combination of industries to analyze any ecosystem.
Enhanced ability to commercialize new ideas and products by quickly finding the relevant industry players.
Superior ability to objectively analyze competitors across all product lines to compete on a more holistic basis.
Side-by-side company comparisons at the line of business level (using data normalized with the IBBCS) to facilitate better marketing and planning processes overall because of the granularity.
Better corporate training because every industry and company is analyzed using the same framework.
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Line-of-Business (Industry Five Forces) Level
Information Offers Many Advantages
Industry Group Analysis / Market Area Analysis (A list of industries which make up the general market)
Industry Analysis Report (A seven page PDF analyzing one specific industry)
Company Lines-of-Business Summary Report (An objective list of industries the company competes in)
Company Lines-of-Business Detailed Analysis (An objective list of industries the company competes in with a seven-page Industry Analysis or a one-page Industry Summary for each of the company’s lines of business)
Companies Side-by-Side Analysis (Compares ten companies or fewer, by line-of-business)
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Industry Building Blocks Provides the Following Standard
Industry & Company Reports + Much More
Define An
Industry
Group
Define An
Industry
Define A
Company
Compare
Companies
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Decision Makers Want Information That Enables
Them To Make Better Decisions Definitions of the term “Industry”
Industry (used loosely)
Anything you want it to mean. For example:
– The Agriculture, Forestry, Fishing & Hunting “industry” includes
the Agriculture “industry” which includes
the Fruit Farming “industry” which includes
the Berry Farming “industry” which includes
the Blueberry Farming “industry”
(Strategically
Relevant)
Industry
1. A definition for strategic planners & industry analysts:
The right level to conduct an industry analysis.
– For example: a Michael Porter 5-forces industry analysis.
Example: Blueberry Farming Industry
2. A definition for those not familiar with industry analyses:
One or more products and/or services that are direct substitutes sold by one or more businesses to one or more external customers (and where the processes for manufacturing the product,
or for providing the service, are similar).
Sounds obvious.
I hope our strategy and
marketing teams know
the specific industries
that we compete in.
Compare
competitors
at the
LoB level.
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Holistic Corporate Planning
Begins With An Industry Analysis for Each LOB
Company & Industry
Information Sources
(External & Internal)
Activity 2
Activity N
Activity 1
Corporate Strategy
Operational Plan
Financial Plan
< Your Company >
Group Strategy
Operational Plan
Financial Plan
Group A
Group Strategy
Operational Plan
Financial Plan
Group X
© 2003 Alan S Michaels
Strategic
Planning
Activities Performed( Support Function = Activity Shared
by two or morebusinesses)
The basics:
• Ongoing, iterative improvement.
• One-page plans = 80% of the benefit.
• Alignment is critical.
• Speed and flexibility are key.
• All parts are interconnected.
[Holistic]Planning Framework
Business 1
Products/Services& Buyer Types---------------
IndustryAnalysis
& Business Strategy
with linkages to
Support Functions
Operational Plan
Financial Plan
Op Plan Fin Plan
Op Plan Fin Plan
Op Plan Fin Plan
Group Strategy
Operational Plan
Financial Plan
Group B
Group Strategy
Operational Plan
Financial Plan
Group C
Business 2
Products/Services& Buyer Types---------------
IndustryAnalysis
& Business Strategy
with linkages to
Support Functions
Operational Plan
Financial Plan
Business 3
Products/Services& Buyer Types---------------
IndustryAnalysis
& Business Strategy
with linkages to
Support Functions
Operational Plan
Financial Plan
Business 4
Products/Services& Buyer Types---------------
IndustryAnalysis
& Business Strategy
with linkages to
Support Functions
Operational Plan
Financial Plan
Business N
Products/Services& Buyer Types---------------
IndustryAnalysis
& Business Strategy
with linkages to
Support Functions
Operational Plan
Financial Plan
Corporate
Decision-Making
Framework
Decision
Makers
CEO
Corporate
Planner
Group Execs
LOB Execs
Marketing -
Sales -
CIOs -
Other
Functional
Managers
For each
Line of Business
Industry
Analysis
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Use Structured IBB Data + Unstructured Big Data to
Best Support Corporate & Business Unit Decisions
Using Big Data Analytics
Leverage the swarm intelligence of news from companies
like Discovery Patterns to adjust strategies when needed.
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Market Research Without IBB Is Like Reading
Without Glasses
NAICS View (1 NAICS Industry)
• 111334 Berry (except Strawberry) Farming
IBB View
• Acai Berry Farming
• Blackberry Farming
• Blueberry Farming
• Dewberry Farming
• Cranberry Farming
• Huckleberry Farming
• Loganberry Farming
• Raspberry Farming
IBB
Precision
Wins
IBB Industries are
the Correct Level for
a Five Forces
Industry Analysis
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An IBB Company Profile Report for: XYZ Inc
Industry Name Industry
Revenue
XYZ Inc
Share %
XYZ Inc
Revenue
Carnation Farming List of
Industries in which
Company XYZ Inc
competes
% $
Chrysanthemum Farming % $
Lily Farming % $
% $ …
% $ Roses Farming
Total
Revenue $ ____
A company competes in “N” lines of business (industries).
To support decision makers, IBB provides industry information on
each LOB (ex: competitors, products, customers, substitutes, etc.).
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Company Side-By-Side Report Format for:
Agriculture & Forestry Companies: A, B & C
Row Industry Name Company
A Company
B Company
C
1 Yes Yes Yes
2 Coconut Farming Does Not
Compete Yes
Does Not
Compete
3 Kiwifruit Farming Yes Does Not
Compete Yes
4 Mangoes Farming Yes Yes Yes
5 Pineapple Farming Yes Yes Does Not
Compete
N Yes Yes Yes List of all industries where
Companies A, B, & C compete.
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Prior to Now, Company & Industry Information
Came From Three Basic Categories of Vendors
There are hundreds of
vendors that provide
information on companies -
and they group the companies
into “ industry sectors .”
This “industry sector data” is
usually at way too high a level
to be actionable.
There are many data vendors
that use NAICS (and old) SIC
codes in providing industry and
company data. These coding
schemes are also at too high a
level to meet the needs of most
decision makers.
Niche (often premium) vendors for industry and
company information are typically focused on a
narrow set of industries and / or they only cover a
limited geographic area.
2
3
1
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Decision Makers Increasingly Want Information at
the Line-of-Business Level
Company 10k Historical Data
& Industry Sector
Data Providers
SIC & NAICS
Government Classification
Data Providers
Deep Dive, Narrowly Focused:
Management Consultants,
Industry Analysts
& Market Research Firms
Information Providers
Industry & Company
Line-of-Business Strategic Intelligence Provider
1 2
3 The New Category 4
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Industry Segmentation & Target Marketing
with IBB Precision Is So Easy
Each of the IBB 17,000
industries has its own
Industry Matrix.
Over 30,000 members
19 Industry Sector Subgroups
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Join Our LinkedIn Group: “Corporate Planning,
Strategy & Strategic Market Segmentation”
Top 17,000
Industries
Aerospace & Defense Food, Beverage & Tobacco Manufacturing
Agriculture, Forestry, Fishing & Hunting Healthcare, Life Sciences & Pharmaceuticals
Apparel Manufacturing Insurance, Annuities & Healthcare Plans
Auto, Truck, Train & Ship Manufacturing IT & Business Services
Banking, Financial Markets & Financial Serv. Media, Communications & Entertainment
Chemicals Manufacturing Mining, Metals, Energy & Environmental Serv.
Construction & Engineering Services Other Commercial Products Manufacturing
Consumer Products Manufacturing Retail Trade & B2C eCommerce
Consumer Services, Ed. & Real Estate Travel, Transportation, Wholesale & Distribution
Food Services, Hospitality & Lodging
SUBGROUPS
Sample IBB Data Extracts
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Sample Views of IBB Data for
Agriculture & Forestry
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IBB Company “Line-of-Business” Report
Sample
Data Extract
Dole Food Company Inc
(Private Company)
Line-of-Business Analysis
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IBB Companies “Side-By-Side” Report
Sample
Data Extract
Plum Creek Timber Company
PCL (NYSE)
Line-of-Business Analysis
Make your decision with IBB Precision TM
Contact: Alan S. Michaels
© 2015 Industry Building Blocks
IndustryBuildingBlocks.com
The first company to define the
global economy at the granular
(five forces) industry level.
Industry Building Blocks
Make your decision with IBB Precision TM
Thank You