CI in Eastern Europe

1
CI in Eastern Europe

• 08.11.2007
• Presentation at Business Information Forum, Sofia
• Mislav Juriic
• Podravka, Croatia

2
Some history of intelligence in CroatiaThe
Republic of Dubrovnik - Ragusa

• The Republic of Ragusa 14th century 1808
• Cca 30.000 people
• Strong navy trade with big powers
• Remain independent for 500 yrs without a conflict
• Intelligence activities (sailors, traders,
  diplomats)
• In 1776 the Republic of Ragusa became the first
  foreign power to recognize the government of the
  United States (wikipedia)
• Intelligence report from Paris diplomatic
  representative in 1783

3
Content

• General overview of CI in Eastern Europe
• Example CI in Croatia
• Example of CI in an Eastern European company
  Podravka (Croatia)

4
Eastern Europe is an area with more than 300 mil
people ...
Countries covered
Other countries Of eastern Europe
5
... but very diversified in terms of living
standard
non EU countries
Source Planet Retail
6
Small formal CI community, somewhere very active
Google hits in some of the developed
countries Canada 309.000 Germany 156.000
Source SCIP, Internet Note in brackets number
of hits in local language
7
Key drivers of emergence of CI in countries of
Eastern Europe

• Fall of eastern block end of 80s/begining of
  90s opening borders to competition from WE/NA
  markets lost
• EU expansion with 10 countries
• Large ex-intelligence community seeking/forced to
  move to business arena
• Multinational companies doing CI in Eastern
  Europe
• Stevan Dedijer

8
Key developments key stages and differences
9
Key developments key stages and differences
10
Key developments key stages and differences
11
Some other indicators of development

• Education at university level
• Commercial conferences seminars
• Books
• Information analysis providers

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University courses
Note the list is only representative
13
Conferences and seminars
Note the list is only representative
14
Some of CI books in Eastern Europe
Romania
Russia
Croatia
2003
2005
2006
2007
2007
2006
Authors B. Javorovic M. Bilandic
V. Paun
E. Yuschuk
... as well as translations of some of the US
books
15
CI providers
Note the list is only representative
16
Who is mainly doing CI?

• Multinational companies doing CI on global level
• Local/ regional companies all larger companies
  having some regional ambition have some form of
  CI activities
• Almost in each country some activities at
  academic level

17
Some sources of business information in the region

• General resources
• Chambers of comerce, Statistical offices,
  Clipping services,... (local)
• Specific information type resources
• People information (management databases) - local
• Financial information (Credit rating agencies,
  tax offices)
• Market information (local regional players
  MEMRB, global players - AC Nielsen, GFK,...)
• Specific industry resources
• News based (local, some regional)
• Global providers covering CEE markets with
  research (Datamonitor, Euromonitor,...)
• Industry associations (local)

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Example CI in Croatia
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Most of the CI community audience are neither
users nor practitioners
Role in CI community
Usage of CI
Source SCIP survey of interest, Croatia,
November 2006
Question How long have you been a CI user or
practitioner? n167 How do you define your role
in CI community? n167
20
Definitions of CI among the CI audience
Source STATE OF COMPETITIVE INTELLIGENCE IN
CROATIAN COMPANIES, February 2005
21
Just a few companies with dedicated CI team
Examples - Podravka - PLIVA - T-com - Koncar
N23
Source STATE OF COMPETITIVE INTELLIGENCE IN
CROATIAN COMPANIES, February 2005
22
Relatively young CI units
Source STATE OF COMPETITIVE INTELLIGENCE IN
CROATIAN COMPANIES, February 2005
23
Mostly positioned under the Board level
Source STATE OF COMPETITIVE INTELLIGENCE IN
CROATIAN COMPANIES, February 2005
24
Mainly focused on strategic issues
Source STATE OF COMPETITIVE INTELLIGENCE IN
CROATIAN COMPANIES, February 2005
25
Less on early warnings
Source STATE OF COMPETITIVE INTELLIGENCE IN
CROATIAN COMPANIES, February 2005
26
Lower interest for primary sources collection
INTEREST FOR TOPICS on scale from 1 to 5 (1--,
5)
QUESTION How strongly are you interested in the
following topics? . n167
Source SCIP survey of interest, Croatia,
November 2006
27
Ethics not recognised as critical issue
Source STATE OF COMPETITIVE INTELLIGENCE IN
CROATIAN COMPANIES, February 2005
28
Key issues for CI

• Secrecy
• Ethics
• Education
• - Coordination/
• Cooperation
• Integrating
• intelligence
• community

Source personal interviews
29
Dialogue with customers sometimes difficult

• Asking wrong questions
• Too wide Give me everything about ...
• Not linking question to Key succes factors
• Not asking questions
• Focusing on arguments that will support
  management opinion
• Preparing for winter collection for
  collection
• Asking at wrong time
• Its very important. We need this by
  yesterday...

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The right information problem
Example of intelligence requests
User request
Implication for end user
Financial benchmarking of publicly available data
QUICK CHEAP
NOT RELIABLE
Competitor new products to be launched during
next year
QUICK RELIABLE
NOT CHEAP
Competitor management profiles
CHEAP RELIABLE
NOT QUICK
31
Example of CI in an eastern European company
32
Podravka

• Food, beverage pharmaceutical company
  (generics), HQ in Croatia
• Focused on CEE region
• Main products seasonings, soups, meat products,
  children food, water
• Sales cca Eur 475 mil
• www.podravka.hr

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CI in Podravka

• Since 2001, organised within Corporate Strategy
  department
• Providing inputs for strategic decision making
• Strategy development, strategic planning process
  (benchmarking, industry trends, competitor
  profiles activity overviews, weekly one page
  briefing to senior management)
• MA partnerships (company profiles)
• New markets, new product categories (market
  analysis)

34
Examples

• Typical situations
• About company/market
• About product category/market
• About people mainly internal sources
• About industry/environment/market
• Typical solution
• Market research/chamber of commerce/industry
  association/global data providers/credit rating
  agencies internal business development/sales/mar
  keting

35
Next steps

• Intelligence portal
• More formalised processes
• More actionable feedback

36
Closing
37
Moving forward with CI in CEE

• Coordination between academia, business
  government bodies
• Internal PR justifying value added through
  successfull projects
• Advanced topics

38
Is name important?

• Romania intelligence competitiv
• Poland wywiad konkurencji
• Russia k??????????? ????????
• Croatia competitive intelligence, direct
  translation of business intelligence often used
  in public

39
Potential of the wider CI community
4200- 5000
2000
Benchmarks (SCIP members) per 100.000) USA
0,8 Canada 0,6 UK 0,18 Germany 0,07
Source personal interviews
Potential interest in CI per 100.000
2,9-3,5
7,0
5,6
5,2
0,5
0,3
0,18
0,05
Current SCIP members per 100.000
40
Thanks to

• Tomas Vejlupek (Czech Republic)
• Kardos Zsolt (Hungary)
• Szymon Konop (Poland)
• Cristian Rotaru (Romania)
• Alexander Ignatov (Russia)
• Ksenja Hauptman, Bojana Zarnik, Rok Justin
  (Slovenia)
• Oksana Panchuk (Ukraine)

41
Thank you!

• Contact details
• Mislav Jurisic
• Assistant Director
• Corporate Strategy Business Development
• Podravka
• Croatia
• E-mail mislav.jurisic_at_podravka.hr
• or
• mjurisic_at_yahoo.com