2006 soir part ii
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Competitive Intelligence Evolution
at Motorola
Joe GoldbergSenior Director, Corporate Business IntelligenceCorporate Strategy OfficeMotorola, [email protected]
Israel 2008
“Next to knowing all about your own business, the best thing to know about is the other fellow’s
business.”
- John D. Rockefeller
9/27/2007 3Israel 2008MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2005
Agenda
Intelligence at Motorola Defined
Evolution of Motorola Intelligence and Current State
Thoughts on Changes in Intelligence Realities
9/27/2007 4Israel 2008MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2005
Generally consistent corporate reporting structure and customers - credibility, objectivity, relevancy and trust
Corporate Business Corporate Business IntelligenceIntelligence
Executive Vice President and Executive Vice President and Chief Strategy OfficerChief Strategy Officer
President and President and Chief Executive OfficerChief Executive Officer
Corporate Functions
Senior Leadership Team (SLT)
Board of Directors
Primary
Business Unit Strategy/Intel
Everyone Else
Secondary
Our Motto: “To be constructively annoying.”
9/27/2007 5Israel 2008MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2005
Corporate Intelligence historically ties together virtual team
Various Sources
Sector/group BI Leaders
Info
rmat
ion
In
form
atio
n
So
urc
esS
ou
rces
Corporate, Corporate, Sector, Sector, Group,Group,
RegionsRegions
Decision-Decision-makers makers
andandIntelligence Intelligence
UsersUsers
Internal BI Network
Business Unit Intelligence
Intelligence Products
Business Unit Intelligence
Business Unit Intelligence
Business Unit Intelligence
Business Unit Intelligence
Corporate B
usiness Intelligence
9/27/2007 6Israel 2008MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2005
The critical elements of intelligence at Motorola Proactive, timely intelligence products to assist decision-makers and intelligence users
So
ur c
esS
ou
r ces
IMPACTIMPACT
Political,Political,Economic,Economic, SocialSocial
ForForcesces
MarketsMarkets
CustomersCustomers
CapabilitiesCapabilities
CompetitionCompetition
PlansPlans
IntentionsIntentionsTechnologyTechnology
DevelopmentsDevelopments
Industry Industry StructureStructure
Corporate Corporate Security Security ThreatsThreats
• Impact on business decisions
• Early warning of competitor moves
• Rapid response to market opportunities
• Integral to formulation of strategy
• Prevention of mistakes, security, counterintelligence
• Increase revenue for the companyAnalysis
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An IT systemAn IT system
Primarily reactive research driven Primarily reactive research driven
News, or data distribution serviceNews, or data distribution service
Internally focused market Internally focused market researchers researchers
Static assessments of competitor Static assessments of competitor actions and market environmentsactions and market environments
A skill assumed to be inherent in A skill assumed to be inherent in all employeesall employees
IsIsIs NotIs Not
A process to identify, collect on, A process to identify, collect on, or predict key issueor predict key issue
Actionable analysis for key Actionable analysis for key decision-makersdecision-makers
Professional, efficient and effectiveProfessional, efficient and effective
Endorsed by leadershipEndorsed by leadership
An objective “outsiders” An objective “outsiders” perspective perspective
A zealot for the institutionalization A zealot for the institutionalization of a BI Cultureof a BI Culture
Foundational principles of intelligence
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• Consumer Research Group• Bid & Quote Group • CI Team• Product Groups• Standards• Sales Team• Merger & Acquisition Team• Legal
• Trade Associations• Periodicals• Annual Reports• Financial Analyst Reports• Industry Analyst Reports• Newspapers• Government
Intelligence Intelligence SourcesSources
PublishedPublishedElectronic/PrintElectronic/Print
Primary SourcesPrimary Sources
• Consumer / Market Research
• People - employees, partners, competitors, customers
• Tradeshows, seminars
InternalInternal
• On-Line Databases• Company Websites• Special Websites
InternetInternet
Joe’s Belief: Source base has expanded, but in the end, it is the same for everyone
Secondary SourcesSecondary Sources
ExternalExternal
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Decision Area
Recommendations
Data
Education
Facts
Experience
Insatiable Curiosity
Critical Thinking
Strong Memory
Joe’s belief: The key differentiating factor is the quality of the individual intelligence professional
Intuition
Common Sense
Instinct
Knowledge
Communication Skills
Communication Skills
Collection and Research Skills
Collection and Research Skills
CustomerRelationship
Skills
CustomerRelationship
Skills
9/27/2007 10Israel 2008MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2005
Agenda
Intelligence at Motorola Defined
Evolution of Motorola Intelligence and Current State
Thoughts on Changes in Intelligence Realities
9/27/2007 11Israel 2008MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2005
Budget
Time
Staff
Key business issues
Reporting structure
Overall company structure
Primary and secondary resource access
Budget
Time
Staff
Key business issues
Reporting structure
Overall company structure
Primary and secondary resource access
Overall, intelligence still remains a misunderstood and under-valued “profession”
Overall, intelligence still remains a misunderstood and under-valued “profession”
Intelligence success and impact is directly related to how well we understand our work environment
Strategy & Direction
Information Processing &
Storage
Collection
Analysis & ImplicationsDissemination
Feedback
Decision-makers
9/27/2007 12Israel 2008MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2005
Evolution of the Motorola Business Intelligence Group
CEO Bob Galvin appointed to President’s Foreign Intelligence Advisory Board
Concluded that an business intelligence department was essential; Realized
value of collection and analysis (first serious attempt in U.S. industry)
A former CIA Officer has always led the corporate group
Tactical Strategic
Few
Many
MAIN AREA OF FOCUS
EN
D-U
SE
RS 1983-19871983-1987
““Proof of Concept”Proof of Concept”
2000 – 20052000 – 2005““Back to Basics”Back to Basics”
1993-19991993-1999““Growth and Global”Growth and Global”1987-19931987-1993
““Credibility”Credibility”
2005 – 2005 – “Architect “Architect
and and Distribute”Distribute”
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•Corporate mandate to establish structure for world-class unit.
•Strategy - Top down.
•KIT - Key Intelligence Topics - direct interviews with top managers.
•Service broad needs of strategic and operational managers.
•Professional Intelligence collectors; library started.
Motorola at a glance - 1985
Revenues: $5.5B
U.S. Sales: $5.0B
# of Employees: 90,000
• Resources split to cover operational and strategic needs.
• Too academic and reliant upon databases.
1983-19871983-1987
““Proof of Concept”Proof of Concept”
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1987-19931987-1993
““Credibility”Credibility”
• Centralized strategy.
• Rebuilt to focus on operational needs, businesses relevance/ development and technology.
• “The more people on the distribution list, the less value it has.”
• Focused decreased internal Motorola networks and communication.
• Lack of geographic coverage (as needed) - focused on “must-do’s”
Motorola at a glance - 1990
Revenues: $10.9B
U.S. Sales: $6.0B
# of Employees: 105,000
9/27/2007 15Israel 2008MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2005
1993-19991993-1999
““Growth and Global”Growth and Global”
• Across & up strategy.
• Build/broaden global collection capabilities.
• Redesign analysis to cover increasing global strategic issues.
• Broaden customers of intelligence: strategic focus + business specific
• Rebuild internal intelligence network
• External intelligence networks decreased with re-focus on internal sources as business is stressed.
• Balance between reactive and proactive with additional coverage.
Motorola at a glance - 1998
Revenues: $29.4B
U.S. Sales: $12.0B
# of Employees: 88,000
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• Continue across & up strategy to customers of intelligence: strategic focus + business specific.
• Global collection capabilities continue, but are stressed.
• Redesign analytic products to cover increasing global strategic issues.
• Re-structuring and business issues weakened intelligence team.
• Direct contact with CEO and senior leadership starts weak, ends strong.
Motorola at a glance – 2003 (w/SPS)
Revenues: $27.0B
U.S. Sales: $13.5B
# of Employees: 133,000
2000 – 20052000 – 2005““Back to Basics”Back to Basics”
9/27/2007 17Israel 2008MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2005
• Mandate to strengthen BI team with some corporate “control.”
• Intelligence products redesigned for focus and effectiveness.
• Relationship with senior leaders continues strong.
• Challenge to maintain intelligence professionals and network.
• Company culture and structure.
Motorola at a glance - 2007
Revenues: $36.6B
U.S. Sales: 50%+
# of Employees: Much lower
2005 – 2005 – “Architect “Architect
and and DistributeDistribute
””
9/27/2007 18Israel 2008MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2005
New charter of Corporate Intelligence
Lead global intelligence professionals to provide objective, relevant,
actionable intel on key issues.
Provide information and intelligence to Corporate Strategy and other
Corporate functions (then everyone else).
Promote intelligence processes across businesses and functions.
Lead joint Motorola tradeshow intelligence collection and analysis
program.
Lead governance issues and structure to align cross-company
intelligence issue direction, quality, and customer support.
9/27/2007 19Israel 2008MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2005
Recommendations Actions that must be taken
Wisdom Learned experiences from previous decisions
Predictions What do we think will happen?
IntelligenceAnalysis of the organized information – actionable, relevant, timely
InformationPatterns built by looking at several datapoints, assign meaning
Data Concepts, unconnected facts or specifics
Strategic A
ction
Strategic S
upport
The changing intelligence role pushed toward new analytic decision-making building blocks and action
9/27/2007 20Israel 2008MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2005
Agenda
Intelligence at Motorola Defined
Evolution of Motorola Intelligence and Current State
Thoughts on Changes in Intelligence Realities
9/27/2007 21Israel 2008MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2005
Global Telecom TV/EntertainmentElectronics
Semiconductor Computer/IT Defense
Reality: Decision-makers must act in a complex and dynamic global competitive environment
9/27/2007 22Israel 2008MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2005
Next Quarter“The Colonization
of Mars”Now
“The New York $tock Exchange”
Reality: The decision-maker’s time horizon keeps narrowing
… our role is to force them to see the predictable future…
Last Quarter“The
Middle Ages”
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Reality: Decision-makers receive messages from multiple competing inputs over time…
MediaMedia
PeoplePeople
Mar
ket
Mar
ket
…information flows freely, but trends and context are hidden within the messaging mosaic...
TimeTimeTimeTime
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End-users
End-users
Case Study: Old State – Several highly detailed, insightful, loosely connected analytic reports created over a random period
Topic #1Topic #1Topic #1Topic #1
Topic 3#Topic 3#Topic 3#Topic 3#
Topic #2Topic #2Topic #2Topic #2
Inpu
tsInp
uts
Evolving industry, driven by the Information Revolution, forced an evolution in products and process
Inpu
tsInp
uts
9/27/2007 25Israel 2008MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2005
Financial analysis, messages, themes, impact, implications
Strategic event analysis, implications, recommendations
Significant strategic action, business impact analysis, implications, recommendations
Significant strategic action, business impact analysis, implications, recommendations
New State case study: Simplify a complex issue through multiple products over time
March June Sept
Major push strategic Major push strategic review - 4 pagesreview - 4 pages
Stra
tegi
c sig
nific
ance
– p
rodu
ct d
epth
Stra
tegi
c sig
nific
ance
– p
rodu
ct d
epth
Consistent strategic content/message
Individual strategic product
9/27/2007 26Israel 2008MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2005
Financial analysis, messages, themes, impact, implications
Strategic event analysis, implications, recommendations
Significant strategic action, business impact analysis, implications, recommendations
Significant strategic action, business impact analysis, implications, recommendations
March June Sept
Major push strategic Major push strategic review - 4 pagesreview - 4 pages
Stra
tegi
c sig
nific
ance
– p
rodu
ct d
epth
Stra
tegi
c sig
nific
ance
– p
rodu
ct d
epth
New state case study: Multiple analyses reiterate common strategic issues
Facts + Market Knowledge + Analysis = InsightSeveral insights lead to Wisdom (red line)
9/27/2007 27Israel 2008MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2005
As issues grow more complex, message and methods have become simpler.
Reiterating issues, put them in context.
Know your customer, their influencers, what they think and how they receive intelligence.
Obtaining simplicity is complex
Conclusions
9/27/2007 28Israel 2008MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2005