2006 SOIR Part II

Competitive Intelligence Evolution

at Motorola

Joe GoldbergSenior Director, Corporate Business IntelligenceCorporate Strategy OfficeMotorola, [email protected]

Israel 2008

mailto:[email protected]

“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


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.”


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





Corporate B

usiness Intelligence


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


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


• 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


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


Agenda





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


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”


•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”


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”


Revenues: $10.9B

U.S. Sales: $6.0B



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.


Revenues: $29.4B

U.S. Sales: $12.0B



• 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


2000 – 20052000 – 2005““Back to Basics”Back to Basics”


• 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.


Revenues: $36.6B

U.S. Sales: 50%+

# of Employees: Much lower

2005 – 2005 – “Architect “Architect

and and DistributeDistribute

””


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.


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


Agenda





Global Telecom TV/EntertainmentElectronics

Semiconductor Computer/IT Defense

Reality: Decision-makers must act in a complex and dynamic global competitive environment


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”


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


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


Financial analysis, messages, themes, impact, implications

Strategic event 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


Financial analysis, messages, themes, impact, implications

Strategic event 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)


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

2006 SOIR Part II

Documents

Transcript of 2006 SOIR Part II