chemical companies should promote greater market intelligence development

Innovation, new products and applications, stronger environmental awareness and changes in global population and consumer preferences are affecting the value chain of chemical companies. How can global chemical companies solve this problem through market intelligence?

In the 2011 global market intelligence survey conducted by m-brain (formerly known as the global intelligence alliance), 64 chemical companies answered a series of questions about the status and plans of their intelligence functions. We asked Timo maisila, a consultant from m-brain (formerly GIA), for some comments on the findings.

Can you describe the current market intelligence of the chemical company?

"The average total budget of the 64 chemical companies surveyed is 2 million pounds, which is quite low compared with other related industries. The cost of human resources accounts for about 50% of the budget.

The relatively small market intelligence budget may be due to senior management's focus on technical issues and day-to-day business. Other possible reasons may be the small number of transactions and disruptive changes compared to other related industries.

Interestingly, 100% of respondents said they benefited from market intelligence. This is rare in related industries.

On the other hand, satisfaction can also be improved. Only 38% strongly believe that they benefit from systematic market intelligence. Compared with the satisfaction level of consumers and retail industry (61%), the difference is significant. Respondents also said that 25% of their intelligence requests could not be met at present.

Overall, it seems that the level of market intelligence in the chemical industry can be improved. "

How to improve the standard?

"The only way to increase the share of high satisfaction end users is to learn from other industries. Market intelligence can be more insightful than just listing prices, M & A activities, new patents, product launches and capacity development.

Technical B2B experts are a group of difficult people with professional needs. Like other industries and managers, they want to be able to communicate at their own professional level. Analysis that meets this need cannot always be delivered in bulk.

These are just two very broad examples, because each company has different market intelligence needs. Finally, as stated in the world-class market intelligence roadmap of m-brain (former GIA), it is most effective if market intelligence experts evaluate each company's scope, process, deliverable, tools, organization and culture

What is the potential of market intelligence development of chemical companies?

About 70% of companies already have systematic market intelligence operations. According to our interviewees' plans to invest in the establishment of market intelligence units, this share may rise to 85% by 2012.

It seems that participants in the chemical industry intend to increase their overall investment in market intelligence more than other industries. This is good news because there is still room for improvement. "

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