Market intelligence for B2B
Modern Market Intelligence for your B2B Business
Dante Maestre MSc, Market Intelligence at AEM
Canada
Introduction
In a rapidly changing landscape, businesses need
an intelligence advantage to stay ahead of the
curve. While market leaders acknowledge the
importance of enhanced data and insights for
better decision-making, many are not fully
prepared to capitalize on these opportunities.
Market Intelligence (MI) refers to the process of
gathering, analyzing, and interpreting data about a
specific market to make strategic decisions. For
B2B businesses, this involves understanding the
market landscape, including competitors,
customers, and industry trends.
In the highly competitive world of B2B commerce,
understanding your market and staying ahead of
the curve is vital for success. MI can provide
businesses with the strategic advantage they need
to make informed decisions, drive growth, and
improve customer engagement. This article
explores the role of market intelligence in the B2B
landscape, its benefits, and the tools and
techniques used to gather, analyze relevant data
and some challenges.
B2B
Market research companies predominantly cater
to B2C businesses, as data for these entities is
more readily accessible and abundant.
Furthermore, B2C companies are more inclined to
invest in market intelligence reports, given the
superior quality of data and insights. Nonetheless,
obtaining accurate intelligence is crucial for B2B.
Competitor analysis and industry trends are vital
pieces of information that can either propel a
company to the forefront or leave it vulnerable to
disruption.
Another crucial aspect to consider for businesses
operating in any market is determining the market
size. However, estimating market size in B2B
markets poses several challenges. These include
defining the market, addressing low data
availability for B2B products, calculating market
size based on business rules, and reconciling
expectations with reality.
Defining the market entails determining the
geographical regions and product categories to
include or exclude. Data availability for B2B
markets is often scarce, making it difficult to
estimate market size. Additionally, calculating
market size involves segmenting the market,
accounting for prices, and estimating proportions
for different market segments, which can be
complex.
Fortunately, professionals in B2B environments
can create customized market intelligence using
various methods. The modern world offers a
wealth of open-source intelligence (OSINT)
available on the internet, including databases,
social media content, trade journals, and news
articles. Connecting these disparate pieces of
information can lead to a more profound
understanding of one’s market, though the most
reliable source of information is most often the
CRM of the company itself.
Another approach to generating tailor-made
market intelligence involves predictive modeling.
Identifying the variables impacting a specific topic
is crucial. For instance, B2B companies often serve
as a vital link in the value chain, and their products
and applications are typically more complex than
those of B2C counterparts. Accurately estimating a
specific commodity’s market size may require
analyzing end-product volumes and combining this
data with market characteristics. By employing
these methods, B2B companies can develop
comprehensive market intelligence to guide their
decision-making processes.
Another approach to generating tailor-made
market intelligence involves predictive modeling.
Identifying the variables impacting a specific topic
is crucial. For instance, B2B companies often serve
as a vital link in the value chain, and their products
and applications are typically more complex than
those of B2C counterparts. Accurately estimating a
specific commodity’s market size may require
analyzing end-product volumes and combining this
data with market characteristics. By employing
these methods, B2B companies can develop
comprehensive market intelligence to guide their
decision-making processes.
Despite these challenges, it is crucial for businesses to act on the market sizing information they gather. Accurate market size estimates can lead to data-driven insights, which, in turn, enable better decision-making. These insights might reveal underperforming sales teams, the need for strategy adjustments, or missed opportunities. Embracing such outcomes and adjusting accordingly can significantly benefit a company, as data-driven decision-making outperforms gut feelings or existing routines.
Despite these challenges, it is crucial for businesses to act on the market sizing information they gather. Accurate market size estimates can lead to data-driven insights, which, in turn, enable better decision-making. These insights might reveal underperforming sales teams, the need for strategy adjustments, or missed opportunities. Embracing such outcomes and adjusting accordingly can significantly benefit a company, as data-driven decision-making outperforms gut feelings or existing routines.
Gathering the Data
A successful (MI) project begins defining and
prioritizing intelligence requirements. Stakeholder
goals may vary within a company, from sales
representatives seeking ways to stand out points
to executives using MI for growth strategies and
identifying a competitive advantage.
Once the intelligence requirements are clear
information is collected from OSINT and human
intelligence (HUMINT). Examples of valuable OSINT
sources are job postings, Glassdoor reviews, and
published interviews with upper management. A
competitor’s hiring plans can give insight into
planned expansions and projects. HUMINT, on the
other hand, involves gathering intelligence
through interpersonal contact. Examples include
tapping experienced sales representatives or
conducting win/loss analyses with clients.
Different data sources are suitable for various
industries. For instance, in manufacturing, there is
an increasing interest in using weather data to
deliver valuable insights for supply chain
management. In the pharmaceutical sector, the
Internet of Things (IoT), particularly with
wearables, provides a wealth of market
intelligence. In the oil and gas industry, a company
may create an AI-powered knowledge platform for planning, design, and incident reporting related to
well drilling. In financial services, banks and
investment firms increasingly rely on alternative
data to shape their trading strategies.
As data sources multiply and organizations seek
intelligence from unfamiliar industries or markets,
businesses will need guidance to find high-quality
insights. Often, they will encounter unfamiliar
material from sources they cannot easily
contextualize. The final step involves analyzing the
collected data, transforming the gathered
knowledge into actionable intelligence. Figure 2
summarizes the above steps when creating a MI
report.
Intelligence Products
When establishing quality standards for
intelligence deliverables, it’s useful to view the
entire intelligence program as an organization that
creates marketable products for end-users, like a
company. Producing customized deliverables for
ad hoc needs is expensive, challenging to manage,
market, and measure systematically. The solution
lies in a well-planned and executed intelligence
product and process development, which
enhances the professionalism of the intelligence
program.
An intelligence product is the result of a systematic
intelligence process, with defined users, resources,
information topics, format, delivery channels, and
schedule. Product development involves
standardizing the format and production process
of intelligence deliverables. The content will
change each time, reflecting the latest insights and
foresight related to business environment
developments.
By implementing formal structures for producing
intelligence products, the intelligence team may
gain more time and flexibility. When the process of
creating regular intelligence output follows
consistent, predictable steps and schedules, team
members can better assess the time and effort
required for ad hoc assignments that are integral
to any intelligence program. These deliverables are
often delivered to the foresight manager. Big
manufacturing companies like Evonik and BASF
have skilled foresight managers that use these
deliverables to define strategic goals for the year to
come.
MI for Supply Chain & Risk Mitigation
Market intelligence plays a crucial role in
optimizing supply chain. By analyzing data on
supplier performance, industry trends, and
customer demands, companies can identify areas
of improvement and make strategic decisions to
enhance efficiency, reduce costs, and minimize
disruptions. This involves evaluating supplier
reliability, gauging the potential impact of
geopolitical and economic factors on the supply
chain, and identifying alternative sources of raw
materials or components. Furthermore, market
intelligence can help businesses proactively
address changing customer needs, enabling them
to optimize inventory levels, streamline
distribution channels, and enhance product
availability.
Geopolitical risks, such as trade disputes, currency
fluctuations, or political instability, can also have a
significant impact on business operations. MI
enables businesses to monitor these factors,
assess their potential implications, and develop
contingency plans to minimize their impact on the
supply chain, sales, and overall business
performance.
Additionally, a MI department can help companies
navigate the complexities of regulatory changes,
ensuring compliance and minimizing the risk of
penalties or reputational damage. By staying
informed about evolving regulations, businesses
can adapt their processes, invest in necessary
resources, and maintain a proactive stance
towards compliance.
As a bonus, market intelligence can facilitate
collaboration between supply chain partners,
fostering a data-driven culture that encourages
information sharing and transparency. This
collaborative approach allows businesses to
collectively respond to market changes, mitigate
risks, and seize new opportunities, ultimately
driving supply chain resilience and agility. By
leveraging market intelligence, B2B businesses can
create a more responsive and adaptive supply
chain, capable of navigating the challenges and
uncertainties of today’s global marketplace.
Sustainability and Market Intelligence
As companies increasingly recognize the
importance of sustainable practices in their
operations and decision-making processes,
sustainability intelligence has emerged as a critical
component of a comprehensive market
intelligence program. Sustainability intelligence
focuses on collecting, analyzing, and utilizing data
related to environmental, social, and governance
(ESG) factors, enabling organizations to better
understand the impact of their actions on society
and the environment while making informed
strategic decisions.
Companies like S&P Global and IBM have
recognized the growing importance of
sustainability factors in market intelligence and
decision-making processes. These companies have
realized that such factors are critical drivers of
business and investment performance. By offering
ESG ratings, sustainability indices, and data and
analytics on a range of sustainability topics,
companies like S&P Global are helping their clients
to identify sustainable investment and business
opportunities, as well as to manage risks related to
environmental and social impact.
Moreover, these companies are also incorporating
sustainability into their own operations and
strategies, setting science-based targets for
reducing greenhouse gas emissions, and joining
initiatives to promote greater transparency and
accountability around sustainability issues.
Case Study: BASF Intelligent Mine
Recognizing the growing need for innovation in the
mining industry, BASF has capitalized on this
opportunity to combine their expertise in mineral
processing and ore beneficiation chemistry with AI
technology. The result is the ‘BASF Intelligent Mine
powered by IntelliSense.io’, a platform aimed at
enhancing mine operations’ efficiency,
sustainability, and safety.
Through comprehensive market intelligence, BASF
has identified critical areas within the mining
sector that demand digitalization and
optimization. This insight led to the development
of the open, real-time decision-making platform,
designed to be easily tailored to individual sites
within three months.
The platform supports various mining processes,
such as grinding, thickening, flotation, and pumping, with Optimization as a Service (OaaS)
applications. These applications predict and
simulate future performance, generating processspecific recommendations, and creating efficiency
improvements across the entire mine-to-market
value chain.
This partnership with IntelliSense.io is a prime
example of how BASF has effectively employed
market intelligence to drive the development of
cutting-edge technology and provide valuable
solutions for its customers. In doing so, BASF has
also solidified its reputation as a company
dedicated to addressing industry challenges with
forward-thinking and sustainable solutions.
Market Intelligence at AEM
AEM has effectively used market intelligence to
identify and expand into new markets. Our
modern MI department constantly explores
opportunities to grow its customer base and
diversify its product and service offerings.
Leveraging market intelligence, AEM has been able
to identify relevant trends within sectors of
interest such as sustainable fluids, e-mobility, and
off-grid solutions. By analyzing data on customer
preferences, consumer behavior, preferences, and
purchasing power, along with local economic
conditions and regulatory environments, AEM has
gained valuable insights that have informed its
market entry strategies and localized offerings.
AEM actively utilizes MI in managing its supply
chain to reduce risk, improve product quality,
achieve environmental and social goals, and
enhance overall performance for the company,
customers, and suppliers. By employing MI, AEM
can make well-informed decisions and implement
robust programs to educate and engage
manufacturers.
Contact the author: Dmaestre@aemcanada.com
