FDI Workshop: ECONOMIC INTELLIGENCE Athens, May 2009 Marketing the Mediterranean through FDI...

FDI Workshop: ECONOMIC

INTELLIGENCE Athens, May 2009

Marketing the Mediterranean

through FDI intelligence:

the ANIMA case

Pierre HENRYANIMA Investment

Network

May 2009© ANIMA-Invest in Med

2009 2

I. Intelligent organisations for intelligent

moves


2009 3

Economic intelligence: what for?

Investor /sector

targeting Project qualificatio

n

Project generation

Prospection network

D. Lead generation

Investment intelligence

C. Resource managementData,

studies, observatorie

sTraining, coaching

Monitoring & evaluation

Marketing

strategyInvestment map

Industrial strategy

A. Strategy & organisation

Policy advocac

y

B. Image building and promotionCountry

attractiveness

Communication tools & events

Project handling

Follow-up, after-sale,after-care, clubs etc.

Offers to investors

E. Investor servicing

Investment facilitation& one-stop

shops


2009 4

Regional marketing & intelligence: main objectives

Assessing strengths and weaknesses Promotion efforts are useless if they do not rely on facts Investors ask for realities, not words Necessity to assess one’s own potential Necessity to benchmark with competitors

Devicing smart promotion strategies Identify key players/ potential partners Identify existing resources (docs, studies, databases…) How to best fit existing agendas: fairs, roadshows (Med

Business Agenda for instance) Identify sources of funding: monitoring EU & other

multilateral organisations Med policies (call for tenders, etc.)


2009 5

Measure, and inform about, impact

Very difficult, but decision-makers want to see results ! 3 time horizons, with different type of effects:

Type of activity

Long term /policy design,

training

Mid term – experimentatio

n / pilot projects

Short term /full

scale action

Example of achieve-ment

Creation of an EDATraining sessions

Info campaign for FDI in textile sectorFDI-linked cluster in special eco. zone

Direct generation of FDI project

What can be measured (examples)

Nb of staffs trained% of funds from beneficiaries

Nb. of road showsNb. of leads =contacts with potential investors

Investment flow (nb. of projects, amount)


2009 6

FDI Intelligence is part of Resource management

Investment intelligence

C. Resource managementData,

studies, observatorie

sTraining, coaching

Monitoring & evaluation

Investor /sector

targeting Project qualificatio

n

Project generation

Prospection network

D. Lead generation

B. Image building and promotionCountry

attractiveness

Communication tools & events

Project handling

Follow-up, after-sale,after-care, clubs etc.

Offers to investors

E. Investor servicing

Investment facilitation& one-stop

shops

Marketing strategy

Investment map

Industrial strategy

A. Strategy & organisation

Policy advocacy


2009 7

What type of resources? Resource data base/FAQs

Selling points Sector overviews Digests on labour /law /subsidies Companies already installed (per region, sector, country of

origin) Statistics Maps, photos, images

Pre-investment data Cost of factors (energy, labour, transport etc.) updated Immediately available land/offices for projects In some cases (Jordan), pre-defined business models (IRR

etc.)

ex:The Invest in France ressource centre


2009 8

Invest in France ressource centre

In-sourced: General data Economic, sectoral, national…

Out-sourced: Specific data and market studies Location infos Network of partners: consultants, other ministries (fiscal

matters), real estate…. Regional and local data

Partnership: in France, with regions; worldwide, with trade missions (« missions économiques »)

Built around an intranet –hundreds of pages, thousands of documents

Managed by 1 central operational unit in Paris The ANIMA network is built on same

principles!


2009 9

Focus: Investment intelligence

Smart organisation = tailor-made information management strategy

shared culture (training, compatibility of individual and collective objectives)+ appropriate tools

Collecting AND sharing: Selecting implies clear strategies & objectives "Manual" management via media, personal contacts, consultants +

« Systematic » management (CRM, shared databases, intranet, etc.) Computer-aided tools are a must, but not necessarily heavy artillery! Effective exploitation of outputs & alarms implies a certain institutional

agility!

Case study: the ANIMA Investment intelligence system


2009 10

FDI intelligence: inputs

• FDI projects• Prospects

• Small projects (franchise, rep.

office)

InternetGoogle Alerts /

Monitoring of companies

Others sourcesNewsletters, events,

listings

Direct information

ANIMA team

Inputs fromIPAs & other

partners

Factiva newsflow (>15,000 news per day) Reuters -Dow JonesFree/commercial databases Kompass, Google Finance, Zawya

Semantic

analysis

Selection of ± 1,000 news

and alerts per year for MEDA

MIPOMediterranean

Investment Project

Observatory

VigieInvest in France FDI data base on

30 European countries

Benchmarkinge. g. with East. Europe

AFII AFII InputInput

http://www.animaweb.org/backoffice/


2009 11

Sources: a. network inputs

Some ANIMA members/partners are bound by confidentiality rules

Competition (profit vs non-profit org. + institutional rivalties), « Free rider » temptation + fragile Med solidarity (coopetition)

Lack of standards (macro stats, FDI data, FDI projects database, nomenclature)

Not necessarily compatible nor always possible


2009 12

Sources: b. Internet

Target relevant aggregators: Econostrum, ANSAMed, Google news…

Use filters: Google Alerts (demo)

Be effective when using general or specific search engines (professional sites, financial news…)

Generally free but generally time-consuming

Google Cheat Sheet :how to become Google-efficient after 5’ self-training


2009 13

Sources: c. Newsletters & RSS

Requires systematic reading

Ex: ANIMA intelligence team follow-up Excel spreadsheet


2009 14

Sources: d. Commercial databases

Lexis-Nexis : more than 33,000 press sources

Factiva (Reuters/Dow-Jones): 10,000 news a day

Dun & Bradstreet: financial information on 63 million companies Gives localisation of all branches

Interesting trade-off: Zawya company database (discount for NGOs & public org.)

Potentially time-saving but costly


2009 15

Outputs: FDI maps, trends

18,9 Mds €431 projets

AlgérieEnergie,

banques & services


AlgérieEnergie,

banques & services

1,7 Md €53 projets

ChypreTélécoms, services,

agroaliment.


ChypreTélécoms, services,

agroaliment.


EgypteEnergie, chimie, banques, tourisme


EgypteEnergie, chimie, banques, tourisme


IsraëlSoftware, électronique, banques, R&D


IsraëlSoftware, électronique, banques, R&D

10,2Mds €203

projets

JordanieTourisme, immobilier,banques, software

10,2Mds €203

projets

JordanieTourisme, immobilier,banques, software

€6,0 Mds97 projets

LibanTourisme, TIC

immobilier

€6,0 Mds97 projets

LibanTourisme, TIC

immobilier


LibyePétrole et gaz,travaux publics,

services


LibyePétrole et gaz,travaux publics,

services


Marocagroaliment.,automobile

aéronautique, secteurs

industriels & TIC


Marocagroaliment.,automobile

aéronautique, secteurs

industriels & TIC


Palestine,banques, immobilier, TIC


Palestine,banques, immobilier, TIC

199 proj,11,2 Mds €Syrie

Energie, tourisme, banques, agro-aliment.

199 proj,11,2 Mds €Syrie

Energie, tourisme, banques, agro-aliment.


TunisieEnergie,

automobileaéronautique

télécoms, textile

services


TunisieEnergie,

automobileaéronautique

télécoms, textile

services


TurquieTélécoms,automobile, banques, agroaliment.


TurquieTélécoms,automobile, banques, agroaliment.

2003 2004 2005 2006 2007 20082003 2004 2005 2006 2007 2008

0,7 Md €

MalteMédicaments logistique,banques, services

46 projets0,7 Md €

MalteMédicaments logistique,banques, services

46 projets

Source: ANIMA-MIPO, Projets annoncés

0,8%

1,7%1,1%

2,0% 1,8%

3,2%

4,2%

3,0% 3,0%

0%

1%

2%

3%

4%

5%

2000 2001 2002 2003 2004 2005 2006 2007 2008

Part des pays Med dans les IDE mondiaux

Med share in world FDI, UNCTAD


2009 16

Outputs: 1,000 blue chip co. having recently invested in MEDASource: ANIMA-

MIPO


2009 17

Outputs: Country& sector

positioningMIPO 2003-2006

IsraelHigh techOrigin US

Maghreb & TurkeyTraditional industries,Telecom, off-shoring& sub-contractingOrigin Europe

MachreqMega-projectsFinance, real estate, tourismOrigin Gulf & Asia

Method: principal components analysis over 2,088 projects (2003-2006)


2009 18

II. Lessons from

ANIMA experience

Conclusion 1: smart

Complexity Economies of scale through complex softwares mean

heavy investments (both financial and human)

Be smart! Right-size your ambitions according to available means

No matter how sofisticated your tools are, manpower is a cost to be taken into account Training + time consuming info qualification, selection,

treatment & diffusion


2009 19

high-tech

efficiency

Conclusion 2: smart

« low cost » or free economic intelligence tools do exist!

Google alerts, free RSS feeds, etc.

Use existing peer know-how: Med (ANIMA, etc) or European (Invest in France, etc)

best practises (Invest in France, etc): technical assistance missions, staff exchanges through bilateral ,multilateral or regional cooperation tools such as the Invest in Med programme

Use existing public tools: Market Analysis Tools by the ITC


2009 20

expensive

Conclusion 3: intelligent

« Intelligence» is too often connected to secret services (CIA)…

and « Economic intelligence » can be key in economic wars.

However, « collective intelligence » can bring higher benefits:

collective intelligence ="the capacity of human communities to evolve towards higher order complexity and harmony, through such innovation mechanisms as differentiation and integration, competition and collaboration.“ George Pór, Wikipedia

Regional promotion and cooperation, through instruments such as the ANIMA network and the Med Alliance working on the Invest in Med programme, is a powerful tool: use it!


2009 21

secret

ANIMA is for the progressive constitution of a Med network of economic intelligence actors.

Thank youANIMAANIMA

For a sustainable economic

development of the

Mediterranean

www.anima.coopwww.anima.coop

[email protected]

p

Pierre HENRYProject

ManagerFDI Intelligence

FDI Workshop: ECONOMIC INTELLIGENCE Athens, May 2009 Marketing the Mediterranean through FDI...

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