CI in Eastern Europe

1
CI in Eastern Europe

• 04.06.2007
• Presentation at SLA
• Mislav Jurišic
• Podravka, Croatia

2
Natural stress relief made in Croatia
Plitvice lakes
Dubrovnik
Kornati islands
Zadar
Split
Vrbovska
Source www.croatia.hr
3
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

4
Content

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

5
Eastern Europe is an area with more than 300 mil
people ...
Countries covered
Russia
Other countries Of eastern Europe
Poland
Czech R.
Ukraine
Hungary
Slovenia
Romania
Croatia
6
... but very diversified in terms of living
standard
non EU countries
Source Planet Retail
7
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
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
8
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

9
Key developments key stages and differences
Country 90s 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
10
Key developments key stages and differences
Country 90s 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, gt1000 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
11
Key developments key stages and differences
Country 90s 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).
12
Some other indicators of development

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

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University courses
Country Undergraduate Postgraduate 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 Celakovice
Hungary 1 Technical 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
14
Conferences and seminars
Country 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
15
Some of CI books in Eastern Europe
Romania
Russia
Croatia
2003
2005
2006
2007
2007
2006
Authors B. Javorovic M. Bilandžic
V. Paun
E. Yuschuk
... as well as translations of some of the US
books
16
CI providers
Country Information Analysis Comments
Croatia gt5 gt9 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 enterprises 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 lt5
Note the list is only representative
17
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

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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
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Definitions of CI among the CI audience
Source STATE OF COMPETITIVE INTELLIGENCE IN
CROATIAN COMPANIES, February 2005
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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
23
Relatively young CI units
Source STATE OF COMPETITIVE INTELLIGENCE IN
CROATIAN COMPANIES, February 2005
24
Mostly positioned under the Board level
Source STATE OF COMPETITIVE INTELLIGENCE IN
CROATIAN COMPANIES, February 2005
25
Mainly focused on strategic issues
Source STATE OF COMPETITIVE INTELLIGENCE IN
CROATIAN COMPANIES, February 2005
26
Less on early warnings
Source STATE OF COMPETITIVE INTELLIGENCE IN
CROATIAN COMPANIES, February 2005
27
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
28
Ethics not recognised as critical issue
Source STATE OF COMPETITIVE INTELLIGENCE IN
CROATIAN COMPANIES, February 2005
29
Key issues for CI
Country 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
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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
32
Example of CI in an eastern European company
33
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

34
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)

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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

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Next steps

• Intelligence portal
• More formalised processes
• More actionable feedback

37
Closing
38
Moving forward with CI in CEE

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

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Is name important?

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

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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
41
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)

42
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