Market intelligence research helps with decisions related to investment feasibility in research and development, procurement, strategy and product promotion in new markets. For procurement managers, market intelligence research helps in understanding the supply market and identifying suppliers who can serve their needs.
Companies can use intelligence research to understand problem areas and rectify their investment decisions that failed to reap the benefits. While making major decisions on acquisitions or mergers, companies rely on research to assess the possible synergies that the target company could bring in. This helps to identify the right-fit companies that can help in providing the competitive edge in the market.
The research helps the procurement fraternity by providing customized solutions. However, for the research to serve its purpose, process, goal and sources have to be clear. If the goal is to identify best suppliers, the research should be centered on suppliers in a specific market. Key sources to get relevant data could be industry journals, magazines and survey reports.
While there is abundance of data, the challenge lies in making the data relevant for procurement decision-making. There are research firms that procurement teams can engage to get customized procurement intelligence research reports.
For instance, procurement managers looking for raw material suppliers in a specific region can make use of the service providers for ready-to-use data. For those in the spirits business, information on top molasses suppliers and their performance in terms of market coverage, pricing and quality would help those procurement teams in identifying the right-fit supplier to match their operations.
In the current competitive scenario, investing in market intelligence research is mandatory to take stock of the major changes in the market and be competitive enough to sustain the onslaught of new competitors, changing business environment, satisfying consumer needs and improving the market share.
While each organization has internal data to assess its own performance or enable its decision-making process, it is equally important to understand the performance of its peers in the industry. Therefore the services of market intelligence companies play a crucial role in fulfilling the vacuum in terms of competitor analysis and preparedness to face new challenges.
According to AMA, the research revenue for the top 50 companies in the U.S. stood at $10.46 billion in 2015. Some of the service providers in the market intelligence research space include:
- IMS Health
- D. Power
- International Data Corporation
Companies in the procurement research space include Aranca, CAPS Research, Huthwaite International and Pure Research. As these companies have access to domain experts and data specialists, they can provide category-specific intelligence and market intelligence.