2011 0414 competitive intelligence - organisaation ulkoisen liiketoiminnan tiedonhallinta_klaus...

© 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

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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

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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

© Metso

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?

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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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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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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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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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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

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

2011 0414 competitive intelligence - organisaation ulkoisen liiketoiminnan tiedonhallinta_klaus...

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