In an environment as competitive as FDI attraction, using data smartly can give investment promotion agencies a stronger operational edge. At GGBa, business intelligence (BI) is not just a buzzword. But what is it exactly and how does it come into play? Amitabh Arora, at the helm of our small but highly specialized BI unit, explains how he turns raw data into actionable information.
Given our limited resources, an effective business intelligence strategy is critical. This became even clearer in 2020, as covid-19 hampered networking and outreach opportunities. At GGBa, business intelligence aims to support our representatives in identifying potential investment targets and in keeping track of relevant FDI-related developments. It also allows us to target investors in countries that we do not actively cover, and plays a key role in the design and roll-out of marketing campaigns and new initiatives.
From raw data to tangible impact
Unfortunately – or fortunately –, there exists no systematic data collection on what we are really looking for, i.e. solid investment targets for the region. There is unstructured data available on international expansion plans of companies, which we then try to focus based on the propositions developed by our marketing team and the cantons. In the past, we have worked in close collaboration on niche sectors such as drones or oncology. We process and organize this raw data by looking at certain criteria, for example: is the company well-funded? Fast-growing? Looking to expand internationally? Is it already present in Europe, and if so, where? Are there any Swiss connections?
This analysis helps us to narrow down our list and pinpoint the most promising targets. At the same time, it provides our representatives on the ground with valuable background information. Once the potential targets have been identified, regular company updates are sent to our colleagues, as it could take years of continuous follow up before they finally establish a presence in Western Switzerland.
Stacking the odds in our favor
Of course, data and insights alone are not enough to win a project. In the end, it is always a team effort. Business intelligence is about adding probability at every step of the process. Let’s take the example of an ICT company. While ICT is a priority sector for Western Switzerland and we have an attractive ecosystem in place, the probability of an ICT company spontaneously choosing to set up shop in our region is not very high. However, with a little business intelligence research, we could discover that the company’s main product is a commodity management software. As Switzerland is a renowned trading hub, that probability increases slightly.
The company already has offices in other major trading hotspots, which again further improves our chances as an investment destination. A press release by the firm then mentions that it has raised new funding and plans to strengthen its international presence. As our chances of success become more and more realistic, we could dig deeper and find out that the company has a number of Swiss-based clients and that it will sponsor a leading commodity trading conference in Geneva.
What looked like just another ICT company on the other side of the world has now turned out to be a promising target. Business intelligence enables our colleagues in the field to approach companies in a smart, informed manner, with a clear, valid proposition. Companies, in turn, do not feel like they are being bombarded with mass information and are generally inclined to engage in conversation.
Information is key
Information collected through business intelligence efforts is also used to keep our network in the know about the latest FDI inflows into Switzerland. Twice a month, we issue an internal newsletter compiling the latest greenfield investment projects within the country. This extremely valuable intelligence is shared with the GGBa team both in the markets and the cantons, as well as with selected partners. It is the best existing collection of publicly announced FDI into Switzerland.
Market research and tailored reports
Our business intelligence work includes fulfilling research requests from the GGBa central office, our colleagues in the markets and our cantonal partners. Some of them are of a strategic nature – such as analyzing investments from a given country over a certain period, in order to better understand trends and anticipate the future. Others are one-off assignments, usually for a representative in need of information on a specific topic, a background check on a company, or relevant material to prepare for a big meeting.
Broader horizons
Over the years, business intelligence has contributed to the establishment of 45 companies from 17 countries, enabling GGBa to expand our reach beyond our seven traditional focus markets. We have had success stories from all over the world, including Denmark, Romania, Qatar, Ireland and the UK, where we do not have a local presence. Last year alone, almost 600 new business intelligence targets from over 30 countries were identified.