Executive summary. Delivering Maximum Strategic Value with Market Monitoring, страница 10

When setting up a market monitoring system, one should first of all understand the difference between the implementation and the formulation of strategies, as these set quite different requirements for the market monitoring process.

Strategy implementation is manifested in the functional organization of a company and the various decision-making processes within these functions. For a market monitoring system to be impactful, it needs to be integrated into these decision-making processes so that any output of the market monitoring process is considered an input in a functional decision-making process.

Strategy formulation, on the other hand, requires a more fuzzy process, where sources are defined more broadly and the market signals that are captured are weaker and more uncertain. The market signals that are fed into the strategic planning process inform about possible future scenarios, about potentially disruptive or groundbreaking developments, and about new strategic opportunities.

In any kind of market monitoring process the market signals that are delivered to the decisionmaker must be processed before delivery. Decision-makers cannot act on raw data alone, but need the information to be put into context and presented meaningfully. While many tasks in a market monitoring process can be automated, that particular task requires a skillful analyst.

Strategy determines what kinds of market signals are relevant and why they are relevant. Strategy implies a business context which is comprised of the competitive landscape and strategic themes. The business context is represented by a taxonomy in the market monitoring process. The taxonomy should be constructed carefully to accurately reflect the strategic priorities of the company.

Collaboration tools and social media enhance the market monitoring process. Public social media are one type of information source that can be monitored. In addition, the collaboration tools found on many social media can also be applied within the market monitoring process. As a result, market signals are enhanced and validated through commenting and rating, and field signals can be fed back into the market monitoring process.

For all of this to work, the top management of a company needs to be committed to the market monitoring process, since they are playing a leading role in both the implementation and the formulation of strategy.

10 REFERENCES

David, F. R. (2008) Strategic Management: Concepts and Cases. 12th edition. Prentice Hall.

GIA (2006) Does Your Business Radar Work? Early Warning/Opportunity Systems for Intelligence.

GIA White Paper series. Global Intelligence Alliance.

GIA (2007) Market Intelligence for the Strategy & Planning Process. GIA White Paper series. Global Intelligence Alliance.

GIA (2009) How GIA’s Intelligence Plaza™ Adds Value To Microsoft SharePoint™. GIA White Paper series. Global Intelligence Alliance.

Porter, M. E. (1980) Competitive Strategy. Techniques for Analyzing Industries and Competitors. Free Press.