ci in eastern europe 04.06.2007 presentation at sla mislav jurišić podravka, croatia

CI in Eastern Europe

04.06.2007Presentation at SLA

Mislav JurišićPodravka, Croatia

04.06.2007 CI in Eastern Europe – Mislav Jurišić 2

Natural stress relief – made in Croatia

ZadarSplit Vrbovska

Plitvice lakesDubrovnik Kornati islands

Source: www.croatia.hr


Some history of intelligence in Croatia

The 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


Content

• General overview of CI in Eastern Europe

• Example – CI in Croatia

• Example of CI in an Eastern European company – Podravka (Croatia)


Countries covered

Other countriesOf eastern Europe

Eastern Europe is an area with more than 300 mil people ...

Poland

Czech R. Ukraine

RomaniaHungary

Russia

Croatia

Slovenia


... but very diversified in terms of living standard

0

2000

4000

6000

8000

10000

12000

14000

16000

SLO CZ HU SLK CRO PL RUS ROM BG MNG FYRM SRB UKR BIH

GD

P p

er

cap

Eu

r (2

006)

Source: Planet Retail non EU countries


Small formal CI community, somewhere very active

Current SCIP members 5/2007

Number of google hits for CI 5/2007

Bosnia & Herzegovina 0 3

Bulgaria 1 135

Croatia 15 232

Czech Republic 18 23.000

Hungary 4 373

Macedonia 0 4

Montenegro 0 1

Poland 1 7.060 (304)

Romania 8 9.320 (685)

Russia 3 624 (77.500)

Serbia 0 73

Slovakia 0 471

Slovenia 1 88

Ukraine 0 372

Total 51 41.756

Source: SCIP, InternetNote: in brackets number of hits in local language

Google hits in some of the developed countries:

Canada – 309.000

Germany – 156.000


Key drivers of emergence of CI in countries of Eastern Europe

• Fall of eastern block – end of 80’s/begining of 90’s – 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


Key developments – key stages and differences

Country

90’s Early 2000 2005 -

Croatia - Strategy dept emerging

- Focus on export outside ex-Yu

- Stevan Dedijer

- conference on CI

- CI depts formalised (only large companies)-Acquisitions

- 2 conferences on CI

- CI consulting slowly growing

- SCIP affiliate initiative

- Government talking about knowledge based society

Slovenia - Strategy & MR dept developing

- CI depts formalised (large companies)

- Companies looking for export opportunities

- SCIP affilate initiative



Country 90’s Early 2000 2005 -

Czech Republic

- Some lectures at universities

- Regular lectures

- Company registers available with info on companies

- SCIP Czech

- CI implementations in the companies

- Prerparation of complete CI courses

Hungary - Privatisation

- Security sector increasing, >1000 companies

- Regular consultations

- Specialisation of security companies

- First CI events after 2001

- General view that CI concerns informatics, marketing & information brokerage

- CI conferences (7 since 2000)

- CI course at 1 university

Poland - Strategy depts emerging

- Export in focus

- Market research teaching at universities

- Western companies bring MR to the market

- Development of market research depts

- First vendors appear

- First SCIP members

- First CI courses

- CI managers emerging mainly in western comp.

- CI vendor



Country 90’s Early 2000 2005 -

Russia - KBG reform

- Most of those who left found positions in private security services and competitive intelligence.

- 1994-1995 newly privatized companies began to establish their own intelligence systems but still dependent on employing the ‘old staff’. Corporate security divisions were strongly involved in semi-criminal activities

- Split of CI into two segments. 1. Continued to provide services to state-owned companies in the defense industry. 2. Fully reoriented itself around the needs of private companies.

- National reappraisal of the ethics of traditional Russian CI and, as a result, new trends have started to penetrate competitive intelligence

- More representatives of analytical divisions of state agenices moving to CI

- Non intelligence education of many former officers

- People from business schools entering CI

Considered part of more general activity – economic security

At least 2 local books on CI

Ukraine - (1995) foreign investors started to introduce info collection;

- specialists who previously worked for government agencies started to use their databases to offer services to private sector

- More Universities & Colleges and Trainers offer seminars on how to protect data (information security)

- Different products for a technical protection of data very popular

- Companies hire people to monitor competitors (marketing departments).


Some other indicators of development

• Education at university level

• Commercial conferences & seminars

• Books

• Information & analysis providers


University courses Country Undergr

aduatePostgraduate

Names

Croatia 2 1 University of Osijek – Postgraduate study of entreprenueurship; Higher School for Tourism, Šibenik (6th semester elective, ECTS 5); Higher business school Libertas Zagreb- 4th semester, elective, ECTS 5.

Czech Republic 3 1 Vysoká škola ekonomická; Universita Pardubice - Fakulta ekonomicko-správní: Universita Karlova – filosofická fakulta ; CMC Graduate School of Busienss Čelakovice

Hungary 1Technical University, 17 weeks course

Romania 1

Serbia 1 Faculty of Security Studies, Belgrade

Thought as part of “economic diplomacy” subject

Slovenia 1 1 Business Decision and Information Analysis – an English track course, 6 ECTS, since 2002

Data Analysis for Business Decision-Making – course in Slovenian, 6 ECTS, since 2006

Note: the list is only representative


Conferences and seminarsCountry Conferences Seminars Comments

Croatia 1999-2001

2005-2006 (5)

3 in 2005, 1 in 2006,

Several through HUP, HGK

3 conferences by 2001 on CI, 3 on BI, from 2005 2 on CI

Czech Republic

2001-2006 (6) Inforum 2001 - 2004

SCIP CZECH 2005 - 2006

Hungary 2001-2006 (9) Open Gates Hungary” Ltd. „ Marketing and communication in the light of CI”.

- 2004. Trainex Ltd. „ General view of CI, its position, role and structure. Forms of applied CI. Main methods of the information analysis. Defensive CI. „

- 2006. Association of Hungarian Information Brokerage Firms: „ Partner, rival, customer – company information in Hungary.”

Poland 2005 n/a Couple of conference in past few yrs

Romania 3 conferences IntellCompetitiv

Slovenia 2004-2006 Strategic marketing conference ForSuccess

Best global marketing practices

The Market of business information in Slovenia

Business decision – with help by information systems

Note: the list is only representative


Some of CI books in Eastern Europe

2007 2003200520062006

Croatia Russia Romania

2007

... as well as translations of some of the US books

Authors: B. JavorovićM. Bilandžić

E. Yuschuk V. Paun

http://ci-razvedka.ru/Kniga_Internet_Razvedka.htm


CI providersCountry Informati

onAnalysis Comments

Croatia >5 >9 Not counting consulting companies who do CI as part of projects as well as global analysis providers

Czech Republic 10 5

Hungary 100 12-15 enterprise’s security consulting

Poland Cca 30-40 Mainly doing market research

Romania n/a n/a

Russia Cca 400 Cca 530 Research published in CI Magazine (2004)

Consolidation going on

Slovenia 5 <5Note: the list is only representative


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


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)

Example – CI in Croatia


Most of the “CI community” audience are neither users nor practitioners

Question: How long have you been a CI user or practitioner? n=167How do you define your role in CI community? n=167

6,59

17,96

6,59

5,39

63,47

Less than 1 yr

1-4 yrs

5-9 yrs

More than 10yrs

Not a user norpractitioner

6

20,4

1,2

44,3

28,1

Consultant

Practitioner

Academic

User/ interested

Student

Usage of CI Role in CI community

Source: SCIP survey of interest, Croatia, November 2006


Definitions of CI among the CI audience

Source: STATE OF COMPETITIVE INTELLIGENCE IN CROATIAN COMPANIES, February 2005


Just a few companies with dedicated CI team

N=23

Examples:- Podravka- PLIVA- T-com- Končar



Relatively young CI units



Mostly positioned under the Board level



Mainly focused on strategic issues



Less on early warnings



Lower interest for primary sources collection

QUESTION: How strongly are you interested in the following topics? . n=167

2,96 3,08

3,583,84 3,88 3,98 4,04 4,12 4,13 4,16 4,18 4,21 4,25 4,32 4,33 4,37 4,47

Exte

rnal f

act

ors

Em

erg

ing m

ark

ets

War

gam

es

M&

A

Pers

onalit

ypro

filin

g

Inte

lligence

colle

ctio

n p

rim

ary

sourc

es

Diff

ere

nt

analit

ical

models

BI

syst

em

s

Sce

nari

o p

lannin

g

Str

ate

gic

maps

Inte

lligence

colle

ctio

nse

condary

sourc

es

Apply

ing

inte

lligence

insm

all

com

panie

s

Thre

at

analy

sis

Com

peti

tor

pro

filin

g

Imple

menta

tion o

fin

telli

gence

pro

cess

Turn

ing

inte

lligence

into

act

ionable

Eco

nom

ic &

busi

ness

tre

nds

INTEREST FOR TOPICS on scale from 1 to 5 (1--, 5++)

Source: SCIP survey of interest, Croatia, November 2006


Ethics not recognised as critical issue



Key issues for CICountry Key issues

Croatia Top management awareness

Coordination between academia, business & governemnt

Integrating (ex) government intelligence community

Ethics, bad PR

Czech Republic Education (both managers and practitioners)

Hungary Top management awareness

Legal regulation

Poland Dividing CI from Market Research at the universities

More courses and training

Probably need to wait until most Western players will introduce CI departments in their Polish branches and the locals will follow

Russia Secrecy

Transparency

Slovenia increasing awareness of the needs and benefits of CI practice

establishing and promote ethical code of CI practice

-Secrecy

-Ethics

-Education

- Coordination/Cooperation

-Integrating intelligence community

Source: personal interviews


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• “ It’s very important. We need this by yesterday...”


The “right information” problem

QUICKCHEAP

QUICKRELIABLE

CHEAPRELIABLE

NOT RELIABLE

NOT CHEAP

NOT QUICK

Financial benchmarkingof publicly available data

Competitor new productsto be launched during next year

Competitor management profiles

Example of intelligence requests User request Implicationfor end user


Example of CI in an eastern European company


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


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)

– M&A & partnerships (company profiles)– New markets, new product categories (market

analysis)


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/marketing


Next steps

• Intelligence portal

• More formalised processes

• More actionable feedback


Closing


Moving forward with CI in CEE

• Coordination between academia, business & government bodies

• Internal PR & justifying value added through successfull projects

• Advanced topics


Is name important?

• Romania – intelligence competitiv

• Poland – wywiad konkurencji

• Russia – kонкурентная разведка

• Croatia – competitive intelligence, direct translation of “business intelligence” often used in public


Potential of the wider CI community

0

50

100

150

200

250

300

350

400

Russia Poland Ukraine Croatia Slovenia CzechRepublic

4200-5000

2000

7,05,62,9-3,5 5,2 0,5Potential interest in CI per 100.000

Current SCIP members per 100.000

0,3 0,180,05

Benchmarks(SCIP members) per 100.000)

USA – 0,8Canada – 0,6 UK – 0,18Germany – 0,07

Source: personal interviews


Thanks to

• Tomas Vejlupek (Czech Republic)

• Kardos Zsolt (Hungary)

• Szymon Konop (Poland)

• Alexander Ignatov (Russia)

• Ksenja Hauptman, Bojana Zarnik, Rok Justin (Slovenia)

• Oksana Panchuk (Ukraine)


Thank you!

Contact details:

Mislav JurisicAssistant DirectorCorporate Strategy & Business DevelopmentPodravkaCroatiaE-mail: [email protected]

or [email protected]

ci in eastern europe 04.06.2007 presentation at sla mislav jurišić podravka, croatia

Documents

croatiaexample of ci

ci communitysource

ci user

eastern europeexample

ci community audience

usage of ci role

contentgeneral overview

representativesome of