1 SCIP Africa Summit | October , 2014 Firefighters to Futurists SCIP Africa Summit October 2014 Butterfly Effect Intelligence™: Stuart Maclachlan Phone :+27 (11) /55

 World Class Intelligence Function Fire Fighter to Futurists – Road map to world class competitive intelligence Butterfly Effect Intelligence™ is the licence partner of the Global Intelligence Alliance™, a global leader in market and competitive intelligence. The Global Intelligence Alliance™ developed the World Class Intelligence Development Framework based on insights and feedback from thousands of executives and intelligence practitioners across the globe. Based on collective feedback from almost 4000 respondents across the globe  Butterfly Effect Intelligence™

 World Class Intelligence Development Framework

The Framework is used as the Structure for Benchmarking = Global average = Peer Group average Source: GIA Global Survey = Your Company = World Class Companies

Intelligence Progression – Fire Fighters to Futurists No dedicated resources Only ad hoc work No tools; No working MI process; Part-time resource Daily news distribution Need for MI MI organisation in place Systematic coverage MI specific tools Systematic MI process Not yet full recognition in the organisation Two-way communication MI is integrated with at least one key process Systematic coverage on all key topics with different, targeted deliverables Technology tools MI is an established part of company MI future focused and integrated with the company’s strategy Culture is hungry for new opportunities in the market All tools are widely used Strong MI culture buy in from the CEO 5 Fire fighters (Informal MI) Beginners (Basic MI) Coordinators (Intermediate MI) Managers (Advanced MI) Futurists (World Class MI) MI responsible named MI process emerges MI recognition with refined deliverables MI becomes part of making company future  Butterfly Effect Intelligence™

Progression: From Firefighters to Futurists Six Key Elements of MI ◦ Process: Systematic process by which MI ties in with decision-making ◦ Organisation: Internal/ external resources that form an intelligence operation ◦ Scope: The focus areas/topics of the intelligence operation ◦ Culture: The understanding of the importance of intelligence within the business ◦ Tools: Software and other tools to store and share intelligence ◦ Deliverables: Intelligence output  Butterfly Effect Intelligence™

Leverage global best practice to ensure intelligence needs are met.  Butterfly Effect Intelligence™

Intelligence Elements: Scope  Butterfly Effect Intelligence™

Intelligence Elements - Scope Intelligence Scope: Purpose Users Timeframe Specific topics Key elements of Intelligence Scope: Breadth of Scope Depth of Scope Future Orientation  Butterfly Effect Intelligence™

Intelligence Elements - Scope Intelligence Scope - Breadth The dimensions of the intelligence scope can be summarised in the following diagram:  Butterfly Effect Intelligence™

Intelligence Elements - Scope Depth of Scope: Level of detail and insight Key topics Future Orientation: Past activity to future orientation  Butterfly Effect Intelligence™

Intelligence Elements: Deliverables  Butterfly Effect Intelligence™

Intelligence Elements - Deliverables Intelligence Deliverables Concrete output of the intelligence process. Intelligence service areas Intelligence product types Intelligence products Intelligence Product development: Defining intelligence products Ad hoc deliverable cost Systematic intelligence programme - Standardise both the format and production process  Butterfly Effect Intelligence™

Intelligence Elements - Deliverables 1.Continuous Intelligence Services : – Intelligence Portal – Continuous market monitoring and analysis 2.Project Services : – Ad hoc research – Strategic research & analysis Continuous intelligence = base 55%/ 45% The global average split between ad hoc and continuous services is:  Butterfly Effect Intelligence™

Intelligence Elements: Process  Butterfly Effect Intelligence™

Intelligence Elements - Process Intelligence Process Gathering, analysis and reporting of intelligence to the business.  Butterfly Effect Intelligence™

Intelligence Elements: Tools  Butterfly Effect Intelligence™

Intelligence Elements - Tools Intelligence Tools The intelligence portal plays an integral part in providing access to the intelligence content and facilitating collaboration between MI users.  Butterfly Effect Intelligence™

Intelligence Elements - Tools Key features of intelligence tools: 1.Content management features: 1.Storing content 2.Categorization 3.Searching and indexing 4.Usage monitoring 2.Data sourcing and input features: 1.Input through a web interface 2.Input through a mobile interface 3.Ability for micro blogging 4.RSS feed management 3.Security: 1.Secure authentication 2.Encrypted data storage 3.Access rights for different sets of users 4.Dissemination: 1.Customised alerts 2.Group mail functionality 3.Integration of external user interfaces 5.Self service access: 1.Search tools 2.Customised dashboards 3.Analysis tools 4.Benchmarking 6.Collaboration: 1.Commenting on content items 2.Discussion forums 3.User groups  Butterfly Effect Intelligence™

Intelligence Elements: Culture  Butterfly Effect Intelligence™

Intelligence Elements - Culture Intelligence Culture Keeps the entire intelligence programme alive Most important element = senior management’s genuine support Creating an intelligence culture starts with branding the intelligence activity  Butterfly Effect Intelligence™

Intelligence Elements - Culture Culture: Branding “Internal brand” to drive recognition, appreciation and impact. Awareness High quality deliverables which have an impact on the business Planned and systematic marketing efforts Acceptance People develop an understanding for the value that the intelligence programme provides and start to appreciate it. Assistance True impact of intelligence culture will be reached through assistance i.e. as active contributors in generating insights.  Butterfly Effect Intelligence™

Intelligence Elements: Organisation  Butterfly Effect Intelligence™

Intelligence Elements - Organisation Resources that make the intelligence process happen: 1.MI Leadership – owner and sponsor 2.MI team – either internal or external partners 3.Portfolio of external information sources and service providers 4.Internal MI network 5.Personal information network Evolution of intelligence – it can take up to 3 years to root an intelligence programme into an organisation.  Butterfly Effect Intelligence™

Intelligence Elements - Organisation MI Team – Primary challenge for analysts is to become internal consultants and be trusted. advisors  Butterfly Effect Intelligence™

Intelligence Elements - Organisation MI Team – MI roles and capabilities  Butterfly Effect Intelligence™

Intelligence Elements - Organisation Portfolio of external information sources and service providers – used in producing MI deliverables: Source: Daniel Pascheles, Vice President, Global Competitive Intelligence, Merck & Co.  Butterfly Effect Intelligence™

Stuart Maclachlan Managing Partner South Africa Contact information 28