ibb overview for banking 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:
Banking & Financial Services
January 14, 2015
Market terminology was at too high a level to make
great decisions.
Big Data includes what?
Internet of Things means what?
You provide Investment Banking: what services?
You need a Consultant; can you be specific?
You want Fruit Salad?
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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 Banking,
Financial Markets
& Financial Services
sector includes over 500
IBB Industries.
By Industry
By Industry Sector
By Industry Subsector
By Industry Group
By Industry Subgroup
By Industry (17,000 granular 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
Example:
Banking, Financial Markets &
Financial Services
Corporate Banking
Corporate Banking
Transaction Services
Cash Management Services
Lockbox Services
Example:
JPMorgan Chase
JPMorgan Treasury Services
JPMorgan Lockbox Services
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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.
Companies like BofA, Citigroup,
Commerzbank & JPMorgan Chase
compete in well over 50 LOBs.
2
3
4
5
6
7
…
17,000
Using a common
industry analysis framework
any number of companies
can be analyzed side-by-side,
at the line-of-business level,
where true competition takes
place. 9
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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 247
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, Hospitality & 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 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 265
18 Travel, Transportation, Wholesale & Distribution 368
19 Unlawful Industries & Industries to Be Classified 592
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: “Seniors” or “Small Businesses”)
Buyer Type (Ex: “CFO” or “Investment Manager”)
Economic Trend (Ex: “Inflation”)
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, retail branch banking and home banking
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:
• Financial Services
• Banking
• Corporate Banking
• Corporate Cash Management
• Wholesale Payment Systems
An Example of An Industry:
• Wholesale Funds Transfer Services
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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
• Asset-based Construction & Mining Equipment Financing
• Debtor-In-Possession Financing
• Export Letter of Credit Service
• Dividend Reinvestment Plan Administration Services
• Commercial Real Estate Farm Loans
• Consumer Debt Collection Services
• Interest Rate Derivatives Trading
• Stock Transfer Agent Services
• Bitcoin Distribution Services
• Discount Retail Brokerage Services
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Examples of Industries at the Granular, Five Forces
Industry Level, Include:
[Aircraft Leasing Vs. Bus Leasing]
[Import LC Services Vs. Export LC Services]
[Debt Trading Services Vs. Equity Trading]
[Business Debt Collection Vs. Consumer Debt Collection]
[ACH Corporate Payments Vs. Wholesale EFT Payments]
[Physical Bitcoin Manufacturing Vs. Bitcoin Distribution Serv.]
[Discount Retail Brokerage Services Vs. Full Services Retail
Brokerage Services]
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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 financial services “industry” includes
the banking “industry” which includes
the corporate banking “industry” which includes
the cash management “industry” which includes
the wholesale funds transfer services “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: Wholesale Funds Transfer Services 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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© 2015 Industry Building Blocks Make your decision with IBB Precision™
Market Research Without IBB Is Like Reading
Without Glasses
NAICS View (1 NAICS Industry)
• 522110 Commercial Banking
IBB View (There >200 IBB Industries for Commercial Banking)
• Accounts Receivable Factoring & Invoice Finance
• . . .
• Commercial Loans - Large Corporate Commercial Lending
• . . .
• Deposit Concentration, Cash Consolidation, Pooling & Collection Services
• . . .
• Debtor-In-Possession Financing
• . . .
• Truck Leasing & Trailer Leasing
• . . .
• . . .
• And >200 additional IBB industries (related to 522110)
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
Bond Exchanges List of
Industries in which Company XYZ Inc
competes
% $
Commodity Exchanges % $
Futures Exchanges % $
% $ Stock Exchanges
% $ …
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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© 2015 Industry Building Blocks Make your decision with IBB Precision™
Company Side-By-Side Report Format for:
Financial Services Companies: A, B & C
Row Industry Name Company
A Company
B Company
C
1 Yes Yes Yes
2 Securities Lending Does Not
Compete Yes
Does Not
Compete
3 Shareholder Services Yes Does Not
Compete Yes
4 Small Business Lending Yes Yes Yes
5 Stock Transfer Agent Serv. 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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© 2015 Industry Building Blocks Make your decision with IBB Precision™
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
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
Banking, Financial Markets & Financial Services
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© 2015 Industry Building Blocks Make your decision with IBB Precision™
Sample
Page 1 of 4
JPMorgan Chase
JPM (NYSE)
Line-of-Business
Analysis
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IBB Companies “Side-By-Side” Report Sample
Data Extract
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