IBB Overview for Agriculture, Costruction & Mining Equipment Sector

Make your decision with IBB Precision TM

Contact: Alan S. Michaels

[email protected]

© 2015 Industry Building Blocks

IndustryBuildingBlocks.com

The first company to define the

global economy at the granular

(five forces) industry level.

Industry Building Blocks

Company Overview version for:

Ag + Construction Equip

January 24, 2015

Market terminology was at too high a level to make

great decisions.

Big Data includes what?

Internet of Things means what?

You Manufacture Farm Equipment – what type?

You need a Consultant; can you be specific?

You want Fruit Salad?

2

© 2015 Industry Building Blocks Make your decision with IBB Precision™

Yesterday’s Problem

Sure, I’ll make fruit salad.

Damn if I know what kind of

fruit salad you want.

Lack of Precision

• Industry Building Blocks provides information on the top 17,000 industries, covering over 99% of the global economy.

• The format for each 7 page industry analysis is the same.

• Granular (line-of-business) industry information supports:

Corporate planning, including selecting new industries to enter

Business unit planning

Market segmentation and strategic marketing

Opportunity identification

Competitor analysis (and vendor and business customer analysis)

Merger, acquisition, and joint venture planning

• Make your decision with IBB precision TM

3


Industry Building Blocks (IBB)

Provides Market Precision

Make your

decision with

IBB Precision TM

Improve opportunity identification, competitor analysis, and corporate and business unit strategy development

with and the

Industry Building Blocks Classification System TM (IBBCS)

IBB leverages Michael E. Porter’s five forces industry model

IBB precision is 15x more granular than NAICS

The IBB research team has been perfecting the Industry Building Blocks Classification System for more than 14 years. (Industry Building Blocks is a private company located in NY.)

4


Industry (Line-of-Business Level) Information Is

Step #1 for Strategy Development

5


A Global View of the World Economy by Industry

Is Logically Straightforward

Industry # Business 1 Business 2 Business 3 . . . Business N

1

2

3

4

5

…

N

There are “N” number of industries

There are “N” number of competitors (companies / brands)

Industry Name

Bus

1

Bus

2

Bus

3

Bus

4

Bus

5

Bus

N

1 Industry Data

2 Industry Data

3 Industry Data

4 Industry Data

5 Industry Data

…

17,000 Industry Data

6


IBB Presents the IBB Global

Industry Game Board

Company Name (and Brand Names)

…

The

Agriculture, Construction

& Mining Equipment

Sector includes over

500 IBB Industries.

By Industry

By Industry Sector

By Industry Subsector

By Industry Group

By Industry Subgroup

By Industry (17,000 industries)

By Company

By Top Parent Company

By Immediate Parent

By Brand

7


IBB Industry & Company Segmentation

Is Built From the Bottom Up

By Industry Other Commercial Products Manuf.

Construction, Agriculture & Mining Equipment

Agriculture & Forestry Equipment

Harvesters Manufacturing

Grape Harvester Manufacturing

By Company Fiat Group

New Holland Harvesting Equipment

New Holland Braud V N Series grape harvesters

8


Companies Typically Compete In More Than One

Industry (Line of Business)

Industry # Company Names (and Brand Names)

1 Global 500 companies

compete, on average,

in 30 lines of business.

Companies like Caterpillar &

John Deere compete in over

100 industries (LOBs).

2

3

4

5

6

7

…

17,000

By using the: Industry Building

Blocks Classification System TM

any number of companies can be

analyzed side-by-side,

at the line-of-business level,

where true competition takes place.

9


IBB Normalization of All Company Data

Enables Apples-to-Apples Comparisons

10


The IBB Classification System TM Enables the Grouping

of Industries. One such example: by Broad Industry Sectors

Industry Sector Name # of Industries

1 Aerospace & Defense 446

2 Agriculture, Forestry, Fishing & Hunting 247

3 Auto, Truck, Train & Ship Manufacturing 598

4 Banking, Financial Markets & Financial Services 521

5 Chemicals Manufacturing 812

6 Construction & Engineering Services 472

7 Consumer Products Manufacturing 1,552

8 Consumer Services & Real Estate 596

9 Food Services & Lodging 127

10 Food, Beverage & Tobacco Manufacturing 1,083

11 Healthcare, Life Sciences & Pharmaceuticals 1,240

12 Insurance, Annuities & Healthcare Plans 374

13 IT, Business Consulting & Business Services 3,026

14 Media, Communications & Entertainment 930

15 Mining, Metals, Energy & Environmental Services 972

16 Other Commercial Products Manufacturing 2,629

17 Retail Trade & B2C eCommerce 265

18 Travel, Transportation, Wholesale & Distribution 368

19 Unlawful Industries & Industries to Be Classified 592

Total Number of IBB (Granular) Industries 17,000

Includes

Agriculture,

Construction

& Mining

Equipment

Manufacturing

Group (and Target) Industries By:

Text in the Industry Name (Ex: “Consulting”)

Industry Revenue or Industry Attractiveness Score

Targeted Customers (Ex: “Commercial Farms”)

Buyer Type (Ex: “Municipal Public Works Manager”)

Economic Trend (Ex: “Interest Rates” or “Metals Prices”)

Technology Trend (Ex: “Internet of Things”)

And by thousands more selection criteria

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IBB Provides an Unlimited Number of Ways to

Group (and Target) the 17,000 Granular Industries

One or more products and / or services that are direct substitutes

Sold by one or more businesses

To one or more external customers

Requires similar activities to produce the product or provide the service (hence,

Automatic Guided Pallet Truck Manufacturing

Hand Pallet Truck Manufacturing

are distinct industries)

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A Working Definition of “Industry” for Those Not

Familiar with Porter’s Five Forces Model

A Molecule & A Chemical Element

Examples of Industry Groups:

• Construction & Mining Equipment

• Mining Equipment

• Conveyor Belt Manufacturing

An Example of An Industry:

• Coal Conveyor Belt Line Manufacturing

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The Difference Between An Industry Group &

An Industry, Is Like the Difference Between…

An “Industry

Group” =

Two or more

Industries

An “Industry”

Is the Right

Level for a

Five Forces

Analysis

Rough Terrain Excavators Manufacturing Vs. On Barge Excavators Manufacturing

Railroad Cranes Manufacturing Vs. Telescopic Crawler Cranes Manufacturing

Compactors - Double Drum Vibratory Rollers Manufacturing Vs. Compactors - Roller Pavers Manufacturing

Diesel Forklift Manufacturing Vs. Compressed Natural Gas (CNG) Forklift Manufacturing

Backhoe Loader Manufacturing Vs. Knuckleboom Loader Manufacturing

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To Highlight IBB’s Precision, IBB Views Each of the

Industries Below as Distinct

Each of these

IBB “Industries”

Deserves a Full

Industry Analysis

IBB, Unlike Most Other Industry Classification Systems,

Does Not Lump Together Any of the Industries Below

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Each (7 page) Industry Analysis Provides the

Following Categories of Information

Industry Revenue Competitors, by: • Top Corporate Parent

• Immediate Parent

• Brand

Industry Attractiveness

Product Segments

Customer Segments

Channel Segments Industry Substitutes

End Users Industry Complements

Industry Trends Industry Vendor Types

Economic Trends Buyer Purchase Criteria

Technology Trends Industry Uncertainties

Geopolitical Trends & More, including keywords*

* For optional link to DiscoveryPatterns.com

Ability to segment any global market arena into its component industries to better address market opportunities.

Ability to group any combination of industries to analyze any ecosystem.

Enhanced ability to commercialize new ideas and products by quickly finding the relevant industry players.

Superior ability to objectively analyze competitors across all product lines to compete on a more holistic basis.

Side-by-side company comparisons at the line of business level (using data normalized with the IBBCS) to facilitate better marketing and planning processes overall because of the granularity.

Better corporate training because every industry and company is analyzed using the same framework.

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Line-of-Business (Industry Five Forces) Level

Information Offers Many Advantages

Industry Group Analysis / Market Area Analysis (A list of industries which make up the general market)

Industry Analysis Report (A seven page PDF analyzing one specific industry)

Company Lines-of-Business Summary Report (An objective list of industries the company competes in)

Company Lines-of-Business Detailed Analysis (An objective list of industries the company competes in with a seven-page Industry Analysis or a one-page Industry Summary for each of the company’s lines of business)

Companies Side-by-Side Analysis (Compares ten companies or fewer, by line-of-business)

17


Industry Building Blocks Provides the Following Standard

Industry & Company Reports + Much More

Define An

Industry

Group

Define An

Industry

Define A

Company

Compare

Companies

18


Decision Makers Want Information That Enables

Them To Make Better Decisions Definitions of the term “Industry”

Industry (used loosely)

Anything you want it to mean. For example:

– The Agriculture & Construction Equipment “industry” includes

the Agriculture & Forestry Equipment “industry” which includes

the Forestry Equipment “industry” which includes

the Debarkers Manufacturing “industry”

(Strategically

Relevant)

Industry

1. A definition for strategic planners & industry analysts:

The right level to conduct an industry analysis.

– For example: a Michael Porter 5-forces industry analysis.

Example: Debarkers Manufacturing Industry

2. A definition for those not familiar with industry analyses:

One or more products and/or services that are direct substitutes sold by one or more businesses to one or more external customers (and where the processes for manufacturing the product,

or for providing the service, are similar).

Sounds obvious.

I hope our strategy and

marketing teams know

the specific industries

that we compete in.

Compare

competitors

at the

LOB level.

19


Holistic Corporate Planning

Begins With An Industry Analysis for Each LOB

Company & Industry

Information Sources

(External & Internal)

Activity 2

Activity N

Activity 1

Corporate Strategy

Operational Plan

Financial Plan

< Your Company >

Group Strategy

Operational Plan

Financial Plan

Group A

Group Strategy

Operational Plan

Financial Plan

Group X

© 2003 Alan S Michaels

[email protected]

Strategic

Planning

Activities Performed( Support Function = Activity Shared

by two or morebusinesses)

The basics:

• Ongoing, iterative improvement.

• One-page plans = 80% of the benefit.

• Alignment is critical.

• Speed and flexibility are key.

• All parts are interconnected.

[Holistic]Planning Framework

Business 1

Products/Services& Buyer Types---------------

IndustryAnalysis

& Business Strategy

with linkages to

Support Functions

Operational Plan

Financial Plan

Op Plan Fin Plan

Op Plan Fin Plan

Op Plan Fin Plan

Group Strategy

Operational Plan

Financial Plan

Group B

Group Strategy

Operational Plan

Financial Plan

Group C

Business 2


IndustryAnalysis

& Business Strategy

with linkages to

Support Functions

Operational Plan

Financial Plan

Business 3


IndustryAnalysis

& Business Strategy

with linkages to

Support Functions

Operational Plan

Financial Plan

Business 4


IndustryAnalysis

& Business Strategy

with linkages to

Support Functions

Operational Plan

Financial Plan

Business N


IndustryAnalysis

& Business Strategy

with linkages to

Support Functions

Operational Plan

Financial Plan

Corporate

Decision-Making

Framework

Decision

Makers

CEO

Corporate

Planner

Group Execs

LOB Execs

Marketing -

Sales -

CIOs -

Other

Functional

Managers

For each

Line of Business

Industry

Analysis

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Use Structured IBB Data + Unstructured Big Data to

Best Support Corporate & Business Unit Decisions

Using Big Data Analytics

Leverage the swarm intelligence of news from companies

like Discovery Patterns to adjust strategies when needed.

21


Market Research Without IBB Is Like Reading

Without Glasses

NAICS View (1 NAICS Industry)

• 333111 Farm Machinery & Equipment Manufacturing

IBB View (There are 50 IBB Industries for Farm Equipment)

• Tractors / Compact & Sub-Compact Tractor Manuf.

• Tractors / Farm Tractor & Agricultural Tractor Manuf.

• Tractors / Row Crop Tractor Manufacturing

• Tractors / Specialty & Custom Tractor Manufacturing

• Tractors / Utility Tractor Manufacturing

• Tractors / Walking Tractor Manufacturing

• Fellers / Tracked Fellers & Feller Buncher Manuf.

• Fellers / Wheeled Fellers Manufacturing

• Harvester Head Manufacturing

• Harvesters / Combine Harvester Manufacturing

• Harvesters / Grape Harvester Manufacturing

And 39 additional IBB industries (related to 333111)

IBB

Precision

Wins

IBB Industries are

the Correct Level for

a Five Forces

Industry Analysis

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An IBB Company Profile Report for: XYZ Inc

Industry Name Industry

Revenue

XYZ Inc

Share %

XYZ Inc

Revenue

Track Skidder Manufacturing List of

Industries in which

Company XYZ Inc

competes

% $

Wheel Skidder Manufacturing % $

Crawler Dozer Manufacturing % $

% $ …

% $ Wheel Dozer Manufacturing

Total

Revenue $ ____

A company competes in “N” lines of business (industries).

To support decision makers, IBB provides industry information on

each LOB (ex: competitors, products, customers, substitutes, etc.).

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Company Side-By-Side Report Format for:

Ag + Construction Equipment Companies: A, B & C

Row Industry Name Company

A Company

B Company

C

1 Yes Yes Yes

2 Bridge Crane Manufacturing Does Not

Compete Yes

Does Not

Compete

3 Gantry Crane Manufacturing Yes Does Not

Compete Yes

4 All Terrain Crane Manufacturing Yes Yes Yes

5 Jib Crane Manufacturing Yes Yes Does Not

Compete

N Yes Yes Yes List of all industries where

Companies A, B, & C compete.

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Prior to Now, Company & Industry Information

Came From Three Basic Categories of Vendors

There are hundreds of

vendors that provide

information on companies -

and they group the companies

into “ industry sectors .”

This “industry sector data” is

usually at way too high a level

to be actionable.

There are many data vendors

that use NAICS (and old) SIC

codes in providing industry and

company data. These coding

schemes are also at too high a

level to meet the needs of most

decision makers.

Niche (often premium) vendors for industry and

company information are typically focused on a

narrow set of industries and / or they only cover a

limited geographic area.

2

3

1

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Decision Makers Increasingly Want Information at

the Line-of-Business Level

Company 10k Historical Data

& Industry Sector

Data Providers

SIC & NAICS

Government Classification

Data Providers

Deep Dive, Narrowly Focused:

Management Consultants,

Industry Analysts

& Market Research Firms

Information Providers

Industry & Company

Line-of-Business Strategic Intelligence Provider

1 2

3 The New Category 4

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Industry Segmentation & Target Marketing

with IBB Precision Is So Easy

Each of the IBB 17,000

industries has its own

Industry Matrix.

Over 30,000 members

19 Industry Sector Subgroups

27


Join Our LinkedIn Group: “Corporate Planning,

Strategy & Strategic Market Segmentation”

Top 17,000

Industries

Aerospace & Defense Food, Beverage & Tobacco Manufacturing

Agriculture, Forestry, Fishing & Hunting Healthcare, Life Sciences & Pharmaceuticals

Apparel Manufacturing Insurance, Annuities & Healthcare Plans

Auto, Truck, Train & Ship Manufacturing IT & Business Services

Banking, Financial Markets & Financial Serv. Media, Communications & Entertainment

Chemicals Manufacturing Mining, Metals, Energy & Environmental Serv.

Construction & Engineering Services Other Commercial Products Manufacturing

Consumer Products Manufacturing Retail Trade & B2C eCommerce

Consumer Services, Ed. & Real Estate Travel, Transportation, Wholesale & Distribution

Food Services, Hospitality & Lodging

SUBGROUPS

Sample IBB Data Extracts

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Sample Views of IBB Data for

Ag + Construction Equipment

29


IBB Company “Line-of-Business” Report

Sample

Data Extract

Caterpillar Inc

CAT (NYSE)

Line-of-Business Analysis

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IBB Companies “Side-By-Side” Report Sample

Data Extract

Partial Data


Contact: Alan S. Michaels

[email protected]

© 2015 Industry Building Blocks

IndustryBuildingBlocks.com

The first company to define the

global economy at the granular

(five forces) industry level.

Industry Building Blocks


Thank You

IBB Overview for Agriculture, Costruction & Mining Equipment Sector

Marketing

Transcript of IBB Overview for Agriculture, Costruction & Mining Equipment Sector