« The French Way to Globalization through Business Intelligence: public-private Strategies »

1. « The French Way to Globalization through Business Intelligence: public-private Strategies » Philippe CLERC Assembly 大会of the French Chambers 分庭of Commerce and Industries French Association for The Development of Economic Intelligence China Executive Leadership Academy Pudong Shanghai, May 29th, 2007 Philippe CLERC - Economic intelligence,Innovationand IT Department- ACFCI

2. “If you don’ t plan for the future, you won’t have one !” (Wayne Rosenkrans) Philippe CLERC - Economic intelligence,Innovationand IT Department- ACFCI

3. In order to explain why and how, us French, we have chosen a national competitive intelligence strategy to try to solve our cultural and structural difficulties to enter the globalized world, • I shall pinpoint the following items: • - The specific transformation of the world • - How to strategize in such a fastly moving world environment ? • - Presentation of the bases of the French CI school • The building and content of the french Strategy « for a new • future » • - Illustrations Philippe CLERC - Economic intelligence,Innovationand IT Department- ACFCI

4. If you happen to ear that France is in advance in this field…. • Be sure that the only privilege that this position awards, • Is for us, French, • to be in a capacity to analyse our mistakes and blind spots…. before others. Philippe CLERC - Economic intelligence,Innovationand IT Department- ACFCI

5. I - Our changing world or what are the specific transformation of our world ? Philippe CLERC - Economic intelligence,Innovationand IT Department- ACFCI

6. Today the world we are living in enters in high speed cycles of changes (innovation, information technologies…). • Four major new characteristics and transformation occur with the information and knowledge society: an explanation for “the intelligence revolution”. Philippe CLERC - Economic intelligence,Innovationand IT Department- ACFCI

7. The first one is the key role of actors (stakeholders赎金保管人) such as numerous networks, States and non State organizations (NGO) playing a growing influence in the management of the economic, cultural, social issues. The second is illustrated by the emergence of new competitive organizations such as territorial 地区性的network organisations composed of SMEs, CCI, national and regional organizations, research centres, university experts, professional associations exchanging and sharing information and intelligence to be more competitive collectively. “Michael Porter”’s paradox: to be competitive in a global economy, you need to be rooted in local clusters群, local or regional knowledge networks. Philippe CLERC - Economic intelligence,Innovationand IT Department- ACFCI

8. The third characteristic is the intensive use of information and knowledge by State or enterprises as a competitive tool through strategies of influence (soft power: influence versus与？ 对抗的coercive强制的高压的 attitude) The power is not anymore exclusively专门地特有地 measured by the capacity of a Nation to mobilize动用 army forces or industry and services worldwide, but also by the capacity to “shape the world” with ides and culture. The capacity to make the environnement or the market move in favour of a collective or individual project, of an entreprise, a province or a nation by mobilizing information and knowledge has become a strategic asset. The fourth concerns economic security and information security systems, that have become essential part of information or knowledge national strategies. Philippe CLERC - Economic intelligence,Innovationand IT Department- ACFCI

9. What about France and the vision it has about its power of • influence • France since many centuries has always worked to build its power and • influence on technological excellency but also on culture. • For us French, • research and development, technology and innovation have always • constituted a strategic assets in order to guaranty independance, power and influence. This means today the mastering of high tech sectors such as sofware, microelectronics, cryptology, biotechnology, telecommunication technologies or aeronautics… • - The battle to develop the cultural industries is a major one for us. Philippe CLERC - Direction de l'Intelligence Economique, de l'innovation et des TIC - ACFCI

10. The national and territorial CI french strategy is based on this vision. In France, as business intelligence is officially understood as the mastering of open source information through legal means to better strategize——商业智能通常被认为是：合法地掌握公开信息更好地决策。 Like in the United States it is considered as well a strategic public policy ——一种战略性的公共政策to develop industrial competitivness as a process and tool used for the management of strategy through an information intensive organization.——通过情报密集组织来发展作为战略管理流程和工具的企业竞争能力 Philippe CLERC - Direction de l'Intelligence Economique, de l'innovation et des TIC - ACFCI

11. II - How to read the world and how to strategize in such • circumstances ? Philippe CLERC - Economic intelligence,Innovationand IT Department- ACFCI

12. Are the classical analysis and planning approaches方法 still efficient ? • We French as other Nations think that their are not sufficient any more and that business or competitive intelligence opens new operational ways in order to face these challenges. • Why ? • It offers an essential process to interpret the complex and rapid evolution of the environment moves, for a better management of our organizations and strategies. Philippe CLERC - Economic intelligence,Innovationand IT Department- ACFCI

13. Mastering time access to information or to knowledge brings a • Nation or an organization a competitive, social or cultural advantages • in a national or territorial development project.——掌握时间进程使其转化为情报或知识，为一国或一组织在国家或区域性发展规划中带来竞争的、社会的或文化的优势。 • Strategy • It offers the capacity to catch early warning signals to anticipate • manoeuvres 调动，策略in negotiations谈判, on the markets, moves in technological, • social or commercial environments.——它提供一种捕获早期预警信号的能力，可以预测市场上的策略变化和技术、社会或商业环境的变化。 • Anticipation and creativity • Competitive or social intelligence creates innovative perception based on • the specific strategic culture (such as the Latin, Chinese, Asian, Anglo- • Saxon one) and interpretative skills. Philippe CLERC - Direction de l'Intelligence Economique, de l'innovation et des TIC - ACFCI

14. III- Grounds of the French CI School Philippe CLERC - Direction de l'Intelligence Economique, de l'innovation et des TIC - ACFCI

15. 1- The doctrine——学科基础 • The inspirers——鼓舞、启发 • Harold Wilensky – Public-private strategies • Inspirer of the modern acception of business intelligence (1960) • The gaining of competitive advantages is generated by collective • strategies and is founded on cooperation between government bodies • and firms. • Knowledge generation constitutes the engine of such strategies. • The strategic advantage is based on « organizational intelligence », • Transversality横断 and on interpretational解释的 skills. Philippe CLERC - Direction de l'Intelligence Economique, de l'innovation et des TIC - ACFCI

16. The Swedish School of social intelligence——瑞士的社会智能学派 • The professor Stevan Dedijer has introduced the notion of « social • intelligence » applied to developing countries in the 1970. • Social intelligence is “the capability to adapt/answer to changing • circumstances of the environment in order to achieve decided • development objectives and strategies”——社会智能是适应/回应变化环境以获得确定的发展目标的能力和策略 • Effectiveness of a Nation’s or a Province social intelligence consists • in the size of its knowledge industry and the density and quality of its • information and expertise networks, but also in its capacity to mobilize • cultural assets as competitiveness and efficiency factors.——一国或一省的社会智能的效率不仅取决于其知识产业的规模以及其信息和专家网络的密度和质量，而且也取决于其将文化资源转化为竞争力和效率因素的能力。 • The efficiency of this major school stresses on the culture factor • and on the importance of CI in cooperative dynamics.——这一学派强调合作机制中的文化因素和CI的重要性。 Philippe CLERC - Direction de l'Intelligence Economique, de l'innovation et des TIC - ACFCI

17. b) Founding texts of the French Competitive Intelligence School Major role of government Governmental Report – Martre « Competitive Intelligence and strategy of firms », French Planning Office, Prime minister, 1994 Context in the 80’s and 90’s Bipolar world and beginning of globalization. Few competing Nations. Economic confrontation between Japan, Europe and the United States: Car industry, cultural industry… Philippe CLERC - Direction de l'Intelligence Economique, de l'innovation et des TIC - ACFCI

18. … Production of a benchmark of different national Business intelligence System: strategic advantage is founded on the coordination of BI capacities of governmental bodies and firms. Décision The Prime minister M. Balladur decided to launch the first French BI national public policy and manage a new Committee for Competitiveness and Economic Security Philippe CLERC - Direction de l'Intelligence Economique, de l'innovation et des TIC - ACFCI

19. Parliamentary Report – M. Carayon « Competitive Intelligence, competitiveness and social cohesion » (2003) Context in 2003 The world becommes multipolar. Confrontation of different capitalism model and emergence of numerous competing nations (BRICs) and threats. France is loosing market and technology position: exposed to a risk of strategic dependancy in many technological key Décision The Prime minister, M. Raffarin launched a new CI strategical public policy and appointed a Senior coordinating official for the CI national strategy. Philippe CLERC - Direction de l'Intelligence Economique, de l'innovation et des TIC - ACFCI

20. Major other Reports Economic and Social Council (national consultative and constitutional body representing the civil society) 2006 – « BI and SMEs ». Assembly of the French Chambers of Commerce and Industry 1997 – « Business Intelligence: the role of the CCI ». 2006 - « BI and Innovation strategic Plans ». MEDEF (National Employers Organization) 2004 – « BI national strategic Plan » Philippe CLERC - Direction de l'Intelligence Economique, de l'innovation et des TIC - ACFCI

21. 2 – Practitioners communities The community of the firms (SMEs and multinationals) : the practitioners The Employers representative Organizations: le MEDEF, CGPME. The community of Universities, Business and Engineers Schools: Education, training and research. Ex. the Economic War School. The BI market: consulting companies and experts An Organization of BI professionals Philippe CLERC - Economic intelligence,Innovationand IT Department- ACFCI

22. Associations  and Think tanks SCIP France The French Association for the Development of Competitive Intelligence (AFDIE) Public and governmental Organizations Institute for Higher National Defense Studies (Prime minister) Institute for Higher Security Studies (Ministry for Security) Les Chambres de commerce et d’industrie Philippe CLERC - Economic intelligence,Innovationand IT Department- ACFCI

23. IV – The building of the French CI strategy or how to “to plan a new future”in a globalized world. Philippe CLERC - Direction de l'Intelligence Economique, de l'innovation et des TIC - ACFCI

24. 1- The reason why for a new industrial strategy based on • CI… • 2003 – Decision-makers became aware of a major risk of strategic and technological dependency because of a lack of real innovation strategy and a weakness of the national economic intelligence organization: • weakness of France’ s vision of its strengths and weaknesses in • key technology sectors; • lack of systematic identification of technological assets • (enterprises, strategic know how and competences…) • - lack of an efficient –coordinated- economic security policy and • alert system. Philippe CLERC - Economic intelligence,Innovationand IT Department- ACFCI

25. Alert signal • An american investment Fund takes the control of GEMPLUS, a French leader in the strategic sectors of smart cards and information security. • Experienced like a « painfull wake-up call » Nobody anticipates. • Governmental decision • The Prime Ministre, Jean-Pierre Raffarin decides to launch a national and territorial Competitive intelligence strategy in order to recover, • technological, but also commercial and cultural positions on the world • market, • power of influence and attractiveness. Philippe CLERC - Economic intelligence,Innovationand IT Department- ACFCI

26. 2 -The national strategy The new public policy is managed through an organization placed in the Prime minister administration (High Ranking Official M. Alain JUILLET in charge of the strategy and of the coordination of CI correspondent in each ministry. Philippe CLERC - Direction de l'Intelligence Economique, de l'innovation et des TIC - ACFCI

27. Various action instruments are available and used: • Foreign investment control concerning key technological strategic • assets (12) • - Financing organization for start-up in key sectors. • Policy of general dissimination of CI tools and methodologies for SMEs • managers. • - Conception of CI content for a standard training course. Philippe CLERC - Economic intelligence,Innovationand IT Department- ACFCI

28. 3 -The« territorial intelligence » strategy The objective is to set up in each Region a Regional Competitive Intelligence strategy and a dedicated organization. Governance Under the national authority of the Ministry for Internal Affairs and the local authority of the representant of the State in the Region Strategic steering committee (Economic, social and technological decision-makers of the Region) Philippe CLERC - Economic intelligence,Innovationand IT Department- ACFCI

29. Missions • - Definition of the economic intelligence strategy of each region • - Mobilizing the strategic watch and intelligence capacities of the • region to serve individual and collective strategies (SME, cluster, • pole of competitiveness…) in the global competitive environment; • - organising economic security for the identification, promotion and • protection of key assets of the region (technological know-how, • firms, research centres, universities…) • - promoting the competitive and cultural advantage of the • territory to compete and cooperate in a better position (sphere of • influence, cooperation… Philippe CLERC - Economic intelligence,Innovationand IT Department- ACFCI

30. 4 - This public policy or national and local CI strategy is has been fostered by prospective In 2006 the Ministryof industry published a report entitled « Key Technologies for 2010 ». What are the key technologies that France must master in 2010 to stay « in the race »? 83 key technologies have been identified and analysed. Philippe CLERC - Economic intelligence,Innovationand IT Department- ACFCI

31. Three main trends: 1- Major influence of information technologies in innovation : virtual simulation, identification, informatics in industrial processes. 2- Major role of technologies in industries concerned by sustainable development: energy transport, food. 3- France has to invest in excellency in complex informatics systems (sofware…) in order to stay among world leaders in these fields. Philippe CLERC - Economic intelligence,Innovationand IT Department- ACFCI

32. IV – Illustrations of the French national strategy. Philippe CLERC - Economic intelligence,Innovationand IT Department- ACFCI

33. 1 - The national cluster strategy • Governmental decision and strategy (2005) • Aim: to foster French innovation capacities through networking between big firms, SMEs, universities, R&D laboratories at a local scale in advanced sectors (rgional nationl international qualification) • Call for proposals. Public and private fundings. Philippe CLERC - Economic intelligence,Innovationand IT Department- ACFCI

34. Philippe CLERC - Economic intelligence,Innovationand IT Department- ACFCI

35. 2 -The French Chambers of commerce and industry network. Philippe CLERC - Economic intelligence,Innovationand IT Department- ACFCI

36. Chambres dof commerce and industry A competence local network near the SMEs - 155 local Chambers (CCI) - 20 regional Chambers (RCCI) - 1 CCI Assembly (AFCCI) -112 CCI abroad (international network) - More than 500 training organizations - Management of ports and airports - 2 millions entreprises - 30 000 men and women - 5 000 elected firms managers - Annual budget: 4 Mds € Philippe CLERC - Economic intelligence,Innovationand IT Department- ACFCI

37. A key actor in the CI national and territorial system • Know-how and networking organisation caracterized by: • a public-private relationship experience: AFCCI and CCI are bridges • between the two spheres. • - Its very important role in the academic and education sphere. • - Its intimate knowledge about the entreprise universe. Philippe CLERC - Economic intelligence,Innovationand IT Department- ACFCI

38. How to find new routes to value added cooperation through CI • and social intelligence ? The FACCI’s experience. • New approach: cooperation versus economic assistance • Action: decision to build an international CI network in order to produce added value coopération. • Colombia: exchange of strategic analysis on the caribbean zones economic, cultural and social issues. Training. • Indonésie: CI and clusters in North Sulawesi. Cooperation in a national CI institute. • Morocco: a territorial intelligence project in the region L’Oreintal. Philippe CLERC - Direction de l'Intelligence Economique, de l'innovation et des TIC - ACFCI

39. With the new President Nicolas Sarkozy who is one of the inspirers of tne national CI strategy a new organization is being setting up to managed national security questions under the authority of the President. • Question: will the new National Security Council be in charge of the CI natioal strategy ? Philippe CLERC - Economic intelligence,Innovationand IT Department- ACFCI

40. As a conclusion Philippe CLERC - Economic intelligence,Innovationand IT Department- ACFCI

41. As a conclusion • Development strategies urge knowledge of the key problem of the world: • - how to get access to the information on the world ? • - how to catch and understand the context and the Global ? • Forsight, prospective and strategic watch and intelligence • bring us a way to match these challenges. Philippe CLERC - Economic intelligence,Innovationand IT Department- ACFCI

42. Bibliography • - Henry Mintzberg, Strategy Safary, The FreePress, NY, 1998. • Chung Wei Choo, Information Management for the Intelligence • Organization, ASIS, Medford NJ, 1998. • Unesco, World Information Report, Ph.Clerc, « Business Intelligence», • 1997-1998. • Herring, Jan P. “Business intelligence in Japan and Sweden: lessons for the United • States”, Journal of Business Strategy, v.13, n.2, March/April 1992 • - Richard D’Aveni, Strategic supremacy: how Industry Leaders create growth, • wealth and power through spheres of influence, Free Press, 2001 • Qiao Liang & W.Xiangsui, La guerre hors limites, Payot, Paris, 2003 • Suzanne Berger, How we compete, Doubleday Broadway, Random House Inc. 2005 • Henri Dou, Sri Damayanty Manullang, Competitive Intelligence, CI WorldWide • Organization, 2006 Philippe CLERC - Economic intelligence,Innovationand IT Department- ACFCI

43. Thank You for Your warm welcome and attention • p.clerc@acfci.cci.fr • www.acfci.cci.fr Philippe CLERC - Economic intelligence,Innovationand IT Department- ACFCI

44. Challenges of such a policy… • A territorial intelligence policy is based on a permanent analysis • capacity and organization. • Strategic watch system (identification and interpretation of early • warning signals on technology, market, standards, law trends and • innovation, networking and expert communities management, • benchmarking of competing territories strategies, their intents and • capacities…) • This requires the capacity to articulate long term techniques like forsight • or prospective with short term techniques of real time information and • alert tracking and analysis. • The national cluster strategy Philippe CLERC - Economic intelligence,Innovationand IT Department- ACFCI

45. IV – The building of the French CI strategy or how to “to plan a new future” To be understood through the major geopolitical and strategical world transformation. To be understood trough the competitive pressure from the world market. To be understood through our national culture and practices in the field of prospective, planning strategies, scientific and technological watch and scanning culture… To be understood through the national cooperation between French and foreign experts who met around the world to create in 1986 SCIP (American, Chinese, Japanese, Swedish, French…) Philippe CLERC - Direction de l'Intelligence Economique, de l'innovation et des TIC - ACFCI