Competitive Intelligence Evolution at Motorola

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Competitive Intelligence Evolution at Motorola
Israel 2008

• Joe Goldberg
• Senior Director, Corporate Business Intelligence
• Corporate Strategy Office
• Motorola, Inc.
• Joe.Goldberg_at_motorola.com

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• Next to knowing all about your own business, the
  best thing to know about is the other fellows
  business.
• - John D. Rockefeller

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Agenda

• Intelligence at Motorola Defined
• Evolution of Motorola Intelligence and Current
  State
• Thoughts on Changes in Intelligence Realities

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Generally consistent corporate reporting
structure and customers - credibility,
objectivity, relevancy and trust
President and Chief Executive Officer
Executive Vice President and Chief Strategy
Officer
Corporate Business Intelligence
Our Motto To be constructively annoying.
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Corporate Intelligence historically ties together
virtual team
Corporate, Sector, Group, Regions Decision-makers
and Intelligence Users
Business Unit Intelligence
Business Unit Intelligence
Business Unit Intelligence
Business Unit Intelligence
Business Unit Intelligence
Various Sources
Sector/group BI Leaders
Internal BI Network
Intelligence Products
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The critical elements of intelligence at
Motorola Proactive, timely intelligence products
to assist decision-makers and intelligence users
Markets
Competition
Customers
Plans
IMPACT
Industry Structure
Capabilities
Sources
Intentions

• 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 company

Corporate Security Threats
Analysis
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Foundational principles of intelligence
Is
Is Not

• An IT system
• Primarily reactive research driven
• News, or data distribution service
• Internally focused market researchers
• Static assessments of competitor actions and
  market environments
• A skill assumed to be inherent in all employees

• A process to identify, collect on, or predict
  key issue
• Actionable analysis for key decision-makers
• Professional, efficient and effective
• Endorsed by leadership
• An objective outsiders perspective
• A zealot for the institutionalization of a BI
  Culture

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Joes Belief Source base has expanded, but in
the end, it is the same for everyone
Intelligence Sources
Primary Sources

• Consumer / Market Research
• People - employees, partners, competitors,
  customers
• Tradeshows, seminars

Secondary Sources
External
Internal

• Consumer Research Group
• Bid Quote Group
• CI Team
• Product Groups
• Standards
• Sales Team
• Merger Acquisition Team
• Legal

Published Electronic/Print
Internet

• Trade Associations
• Periodicals
• Annual Reports
• Financial Analyst Reports
• Industry Analyst Reports
• Newspapers
• Government

• On-Line Databases
• Company Websites
• Special Websites

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Joes belief The key differentiating factor is
the quality of the individual intelligence
professional
Communication Skills
Customer Relationship Skills
Insatiable Curiosity Critical Thinking Strong
Memory
Data Education Facts Experience

• Intuition
• Common Sense
• Instinct
• Knowledge

Collection and Research Skills
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Agenda

• Intelligence at Motorola Defined
• Evolution of Motorola Intelligence and Current
  State
• Thoughts on Changes in Intelligence Realities

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Intelligence success and impact is directly
related to how well we understand our work
environment

• 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
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Evolution of the Motorola Business Intelligence
Group
Many
2005 Architect and Distribute
1983-1987 Proof of Concept
END-USERS
2000 2005 Back to Basics
1993-1999 Growth and Global
1987-1993 Credibility
Few
Tactical
Strategic
MAIN AREA OF FOCUS

• CEO Bob Galvin appointed to Presidents 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

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Motorola at a glance - 1985 Revenues
5.5B U.S. Sales 5.0B of
Employees 90,000
1983-1987 Proof of Concept

• 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.

• Resources split to cover operational and
  strategic needs.
• Too academic and reliant upon databases.

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Motorola at a glance - 1990 Revenues
10.9B U.S. Sales 6.0B of
Employees 105,000
1987-1993 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-dos

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Motorola at a glance - 1998 Revenues
29.4B U.S. Sales 12.0B of
Employees 88,000
1993-1999 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.

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2000 2005 Back to Basics
Motorola at a glance 2003 (w/SPS) Revenues
27.0B U.S. Sales 13.5B of
Employees 133,000

• 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.

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2005 Architect and Distribute
Motorola at a glance - 2007 Revenues
36.6B U.S. Sales 50 of Employees Much
lower

• 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.

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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.

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The changing intelligence role pushed toward new
analytic decision-making building blocks and
action
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Agenda

• Intelligence at Motorola Defined
• Evolution of Motorola Intelligence and Current
  State
• Thoughts on Changes in Intelligence Realities

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Reality Decision-makers must act in a complex
and dynamic global competitive environment
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Reality The decision-makers time horizon keeps
narrowing
our role is to force them to see the
predictable future
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Reality Decision-makers receive messages from
multiple competing inputs over time
Market
Media
People
information flows freely, but trends and context
are hidden within the messaging mosaic...
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Case Study Old State Several highly detailed,
insightful, loosely connected analytic reports
created over a random period
Topic 1
End-users
Inputs
Topic 2
Inputs
Topic 3
Evolving industry, driven by the Information
Revolution, forced an evolution in products and
process
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New State case study Simplify a complex issue
through multiple products over time
March
Sept
June
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New state case study Multiple analyses reiterate
common strategic issues
March
Sept
June
Facts Market Knowledge Analysis
Insight Several insights lead to Wisdom (red line)
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Conclusions

• 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

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Thank You