CI in Eastern Europe

1. CI in Eastern Europe 04.06.2007 Presentation at SLA Mislav Jurišić Podravka, Croatia

2. Natural stress relief – made in Croatia Plitvice lakes Dubrovnik Kornati islands Zadar Split Vrbovska Source: www.croatia.hr CI in Eastern Europe – Mislav Jurišić

3. Some history of intelligence in CroatiaThe Republic of Dubrovnik - Ragusa • The Republic of Ragusa14th 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 CI in Eastern Europe – Mislav Jurišić

4. Content • General overview of CI in Eastern Europe • Example – CI in Croatia • Example of CI in an Eastern European company – Podravka (Croatia) CI in Eastern Europe – Mislav Jurišić

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 CI in Eastern Europe – Mislav Jurišić

6. ... but very diversified in terms of living standard non EU countries Source: Planet Retail CI in Eastern Europe – Mislav Jurišić

7. Small formal CI community, somewhere very active 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 CI in Eastern Europe – Mislav Jurišić

8. 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 CI in Eastern Europe – Mislav Jurišić

9. Key developments – key stages and differences CI in Eastern Europe – Mislav Jurišić

10. Key developments – key stages and differences CI in Eastern Europe – Mislav Jurišić

11. Key developments – key stages and differences CI in Eastern Europe – Mislav Jurišić

12. Some other indicators of development • Education at university level • Commercial conferences & seminars • Books • Information & analysis providers CI in Eastern Europe – Mislav Jurišić

13. University courses Note: the list is only representative CI in Eastern Europe – Mislav Jurišić

14. Conferences and seminars Note: the list is only representative CI in Eastern Europe – Mislav Jurišić

15. Some of CI books in Eastern Europe Romania Russia Croatia 2006 2005 2003 2007 2007 2006 Authors: B. Javorović M. Bilandžić V. Paun E. Yuschuk ... as well as translations of some of the US books CI in Eastern Europe – Mislav Jurišić

16. CI providers Note: the list is only representative CI in Eastern Europe – Mislav Jurišić

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 CI in Eastern Europe – Mislav Jurišić

18. 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) CI in Eastern Europe – Mislav Jurišić

19. Example – CI in Croatia

20. 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? n=167 How do you define your role in CI community? n=167 CI in Eastern Europe – Mislav Jurišić

21. Definitions of CI among the CI audience Source: STATE OF COMPETITIVE INTELLIGENCE IN CROATIAN COMPANIES, February 2005 CI in Eastern Europe – Mislav Jurišić

22. Just a few companies with dedicated CI team Examples: - Podravka - PLIVA - T-com - Končar N=23 Source: STATE OF COMPETITIVE INTELLIGENCE IN CROATIAN COMPANIES, February 2005 CI in Eastern Europe – Mislav Jurišić

23. Relatively young CI units Source: STATE OF COMPETITIVE INTELLIGENCE IN CROATIAN COMPANIES, February 2005 CI in Eastern Europe – Mislav Jurišić

24. Mostly positioned under the Board level Source: STATE OF COMPETITIVE INTELLIGENCE IN CROATIAN COMPANIES, February 2005 CI in Eastern Europe – Mislav Jurišić

25. Mainly focused on strategic issues Source: STATE OF COMPETITIVE INTELLIGENCE IN CROATIAN COMPANIES, February 2005 CI in Eastern Europe – Mislav Jurišić

26. Less on early warnings Source: STATE OF COMPETITIVE INTELLIGENCE IN CROATIAN COMPANIES, February 2005 CI in Eastern Europe – Mislav Jurišić

27. Lower interest for primary sources collection INTEREST FOR TOPICS on scale from 1 to 5 (1--, 5++) Source: SCIP survey of interest, Croatia, November 2006 QUESTION: How strongly are you interested in the following topics? . n=167 CI in Eastern Europe – Mislav Jurišić

28. Ethics not recognised as critical issue Source: STATE OF COMPETITIVE INTELLIGENCE IN CROATIAN COMPANIES, February 2005 CI in Eastern Europe – Mislav Jurišić

29. Key issues for CI • Secrecy • Ethics • Education • - Coordination/ • Cooperation • Integrating • intelligence • community Source: personal interviews CI in Eastern Europe – Mislav Jurišić

30. 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...” CI in Eastern Europe – Mislav Jurišić

31. The “right information” problem User request Implication for end user Example of intelligence requests Financial benchmarking of publicly available data QUICK CHEAP NOT RELIABLE Competitor new products to be launched during next year NOT CHEAP QUICK RELIABLE Competitor management profiles CHEAP RELIABLE NOT QUICK CI in Eastern Europe – Mislav Jurišić

32. Example of CI in an eastern European company CI in Eastern Europe – Mislav Jurišić

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 CI in Eastern Europe – Mislav Jurišić

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) • M&A & partnerships (company profiles) • New markets, new product categories (market analysis) CI in Eastern Europe – Mislav Jurišić

35. 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 CI in Eastern Europe – Mislav Jurišić

36. Next steps • Intelligence portal • More formalised processes • More actionable feedback CI in Eastern Europe – Mislav Jurišić

37. Closing CI in Eastern Europe – Mislav Jurišić

38. Moving forward with CI in CEE • Coordination between academia, business & government bodies • Internal PR & justifying value added through successfull projects • Advanced topics CI in Eastern Europe – Mislav Jurišić

39. Is name important? • Romania – intelligence competitiv • Poland – wywiadkonkurencji • Russia – kонкурентная разведка • Croatia – competitive intelligence, direct translation of “business intelligence” often used in public CI in Eastern Europe – Mislav Jurišić

40. 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 5,2 5,6 7,0 0,5 0,3 0,18 0,05 Current SCIP members per 100.000 CI in Eastern Europe – Mislav Jurišić

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) CI in Eastern Europe – Mislav Jurišić

42. Thank you! Contact details: Mislav Jurisic Assistant Director Corporate Strategy & Business Development Podravka Croatia E-mail: mislav.jurisic@podravka.hr or mjurisic@yahoo.com CI in Eastern Europe – Mislav Jurišić