In difficult economic times it is important, to accurately determine the benefits of internal service units such as market and competitive intelligence departments. Often, these units are funded and every year budgets must be reviewed and approved. How can you as managers of market or competitive intelligence measure the direct benefit and added value that the unit generates for your company in money terms?
The paper will demonstrate that the “contingent valuation” method has proved itself as a procedure that provides the responsible of competitive and market intelligence units with a unique tool which can quantify and substantiate its benefits on an empirically assured basis.
Samples will illustrate how powerful the methodology is when it comes to budget or general justification. Results of this approach proved e.g. that customers confirm that a Competitive Intelligence Unit is worth 3.8 times more than the costs that it generates. If the funding of this unit were to stop, it would accrue losses of 4 million Euro across the surveyed company.
It is the overall aim of the paper to showcase the methodology by using different samples from published studies. The methodology was developed by Nobel Prize laureates Kenneth Arrow and Robert Solow. It was already applied in more than 7,300 studies in over 130 countries, among others for leading scientific libraries in the world, for different in-house information units, service centers, ministries or non-profit organizations.
The “contingent valuation” method should no longer continue to be sidelined in assessing the performance of subsidized units such as Competitive and Market Intelligence departments.
Sabine Graumann is CEO of Graumann Consulting-Services since 2018. Prior to that she served for 37 years Kantar TNS (formerly Infratest). She built the information research centre of this global market research oragnisation and headed for nearly 15 years the Global Competitive Intelligence Unit of Kantar Group (125,000 employees).
She built global secondary research services as business opportunity for Kantar. She conducted long-term studies for the European Commission (6 years) and for the German Federal Ministery of Economic Affairs & Technology (18 years) measuring the digital readiness of countries and industries.
With her own company, Sabine now serves the information industry, editors, information consultants and managers of research centres by conducting customized studies. She organises events and opinion leader discussions, e.g. on occasion of the Digital Summit, Germany, which is chaired by the German Chancelor Angela Merkel or on occasion of the International Frankfurt Book Fair. Sabine has a Ph.D. in information & library sciecnce.
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