Fdireg1 module 6 by Ceddet

TOWARD THE NEXT GENERATION OF IPAS

1ST EDITION

MODULE 6

ORGANIZATIONAL AND MANAGEMENT TOOLS

Toward the Next Generation of IPAs. 1st Edition

Module 6

Course author Inter-American Development Bank (IDB) (www.iadb.org), through its Integration and Trade Sector (INT). Course coordinator Inter-American Development Bank (IDB) (www.iadb.org), through its Integration and Trade Sector (INT), the Institute for the Integration of Latin America and the Caribbean (INTAL) (www.iadb.org/en/intal) and the Inter-American Institute for Economic and Social Development (INDES) (www.indes.org). Module author Marian Scheifler Pedagogical and editorial coordination The Inter-American Institute for Economic and Social Development (INDES) (www.indes.org) in collaboration with CEDDET Foundation (Economic and Technological Development Distance Learning Centre Foundation) (www.ceddet.org).

1st edition Copyright © 2017 Inter-American Development Bank. This work is licensed under a Creative Commons IGO 3.0 Attribution-NonCommercial-NoDerivatives (CC-IGO BY-NC-ND 3.0 IGO) license (http://creativecommons.org/licenses/by-nc-nd/3.0/igo/legalcode) and may be reproduced with attribution to the IDB and for any non-commercial purpose. No derivative work is allowed. Any dispute related to the use of the works of the IDB that cannot be settled amicably shall be submitted to arbitration pursuant to the UNCITRAL rules. The use of the IDB’s name for any purpose other than for attribution, and the use of IDB’s logo shall be subject to a separate written license agreement between the IDB and the user and is not authorized as part of this CC-IGO license. Note that link provided above includes additional terms and conditions of the license. The opinions expressed in this publication are those of the authors and do not necessarily reflect the views of the Inter-American Development Bank, its Board of Directors, or the countries they represent.

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Table of Contents List of Boxes ......................................................................................................................5 List of Tables .....................................................................................................................5 List of Figures ....................................................................................................................5 Glossary ............................................................................................................................ 6 Module Introduction ........................................................................................................7 General Objective of the Module ....................................................................................7 Learning-Oriented Questions.......................................................................................... 8 UNIT I. INTRODUCTION. DIGITAL TRANSFORMATION ................................................. 9 UNIT 2. MANAGEMENT TOOLS ...................................................................................... 11 Learning Objectives ......................................................................................................... 11 II.1. CRM Systems ............................................................................................................. 11 II.1.1. Introduction ................................................................................................... 11 II.1.2. What Is a CRM? ............................................................................................. 11 II.1.3. Why Do IPAs Need a CRM? ......................................................................... 13 II.1.4. Who Is a CRM For? ...................................................................................... 13 II.1.5. Challenges When Introducing CRMs .......................................................... 15 II.1.6. Practicalities to Take into Account When Putting a CRM in Place ........... 16 II.1.7. Alternatives .................................................................................................. 17 II.2. Other Internal Support Systems ............................................................................. 19 II.2.1. Knowledge Base and Communication Tools .............................................. 21 SYNTHESIS OF THE UNIT ................................................................................................ 21 Bibliography ....................................................................................................................24 UNIT 3. ONLINE MARKETING AND PROMOTION TOOLS ............................................ 25 Learning Objectives ........................................................................................................ 25 III.1. Introduction ............................................................................................................ 25

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III.2. Content Marketing in the FDI Space ..................................................................... 27 III.2.1. Typical Mistakes Made by IPAs ..................................................................29 III.2.2. Best Practices Followed by IPAs............................................................... 30 III.3. Outbound Marketing ............................................................................................. 31 III.4. From Outbound Marketing to Inbound Marketing: the Importance of Content ........................................................................................... 34 III.5. The Importance of Response Times and Persistence ......................................... 36 III.6. Where to start ........................................................................................................ 37 SYNTHESIS OF THE UNIT ............................................................................................... 39 Bibliography ................................................................................................................... 39 UNIT 4. INTELLIGENCE AND OUTREACH ..................................................................... 40 Learning Objectives ....................................................................................................... 40 IV.1. The Importance of Databases and Information. Latest Trends .......................... 40 IV.1.1. Track Cross-Border Investments ................................................................ 41 IV.1.2. Which Signals Can Be Identified When Tracking Cross-Border Investments? .................................................................. 45 IV.2. Geo-Referencing of Investment Opportunities: Location Intelligence .............. 45 IV.2.1. How Can Investment Promotion Agencies and Economic Development Organizations Make Use of Location Intelligence Technologies to Gain a Competitive Edge in their Space? ................................ 46 IV.3. “ConnectAmericas” and “Invest in LAC” Platforms— How to Take Advantage of Them? ............................................................................... 49 IV.3.1. ConnectAmericas ....................................................................................... 49 IV.3.2. INVEST in LAC ............................................................................................ 50 SYNTHESIS OF THE UNIT ................................................................................................ 52 Complementary Material ............................................................................................... 52 Bibliography ....................................................................................................................53

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List of Boxes Box 1. The four technology megatrends ....................................................................... 10 Box 2. Salespeople typical behavior .............................................................................. 12 Box 3. Evolution of sales based on the number of contacts........................................ 12 Box 4. CRM definitions ................................................................................................... 13 Box 5. Inbound marketing definition ........................................................................... 34

List of Tables Table 1. Brand strategy vs. corporate strategy vs. product strategy ..........................35 Table 2. Research and data tools widely used in the FDI space...................................42

List of Figures Figure 1. Matrix of commercially available CRM systems............................................ 20 Figure 2. Evolution in communications technologies .................................................. 26 Figure 3. Content marketing ......................................................................................... 28 Figure 4. Influence ripples .............................................................................................. 31 Figure 5. Influencer roles throughout the decision process ........................................33 Figure 6. Example of a social media monitoring platform .......................................... 38 Figure 7. Typical stack of research services used by an IPA ........................................ 44 Figure 8. Use of location intelligence tools by Grow.London..................................... 48 Figure 9. Use of location intelligence tools by Sifdi .................................................... 48 Figure 10. Use of location intelligence tools by Berlin................................................. 49

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Glossary  IPA: Investment Promotion Agency  EDO: Economic Development Agency  B2B: Business-to-Business  CRM: Customer Relationship Management  API: Application Programming Interface  GIS: Geographic Information Systems (GIS)  SEO: Search Engine Optimization  AI: Artificial Intelligence  ROPO: Research Online, Purchase Offline

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Module Introduction Investment Promotion Agencies are not immune to the digital transformation societies, companies and institutions are going through. Although it is still soon to see where these changes will ultimately lead to, it is necessary for them to understand what the underlying forces driving it are and to start leveraging the opportunities they open. The module is structured in three units, plus an initial introduction on digital transformation and technology trends. The second unit focuses on management tools and their impact on agencies’ performance. The third unit looks at online marketing and promotion tools and the importance of generating relevant content. The fourth and last unit addresses how technology can help IPAs in their intelligence and outreach efforts.

General Objective of the Module The primary goal of this module is to give participants a deeper understanding of the tools available to organize and manage their agencies, engage with potential investors and understand their needs and trends, as well as to make their message heard across the digital noise. In doing so, participants will:  Understand the importance of having appropriate tools in place to organize and manage the IPA and to improve business relations with foreign investors and stakeholders.  Learn how to leverage technology to build lasting relationships with potential investors.  Receive guidance on how digital means can enhance and complement their marketing and promotion efforts.

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 Analyze how technology can help with their intelligence and outreach efforts and when building their knowledge base.

Learning-Oriented Questions  What does digital transformation mean for IPAs?  Why do IPAs need appropriate management tools like CRMs in place to organize and manage their tasks and objectives? What other tools can they use to improve their productivity and the quality of their services toward investors?  How can IPAs properly engage and build long-lasting and productive relationships with potential investors?  How can the Internet and the different social networks enhance and complement the traditional marketing and promotion efforts? What new approaches do digital channels need?  Can these new means be used for FDI-related research and to further build the knowledge base of an IPA?

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UNIT I INTRODUCTION. DIGITAL TRANSFORMATION

The digital transformation is reaching all sectors and activities, to varying degrees and with different intensity and speed. Understood as the third and last stage of the application of digital technologies, it is normally preceded by steps involving the conversion to digital and the actual process of embracing digital by the different industries and societies. The digital transformation goes beyond a mere introduction and exploitation of digital technologies, and its importance resides in the need to ask new questions, find new problems and necessities. Innovation lies at the end of that spectrum, looking for the best answers to those new questions. Investment Promotion Agencies are not immune to this process, but without a deep will to transform their core—their value proposition, management mind-set, skills, processes, organizational behavior and culture, and technologies—based on a strategic shift, any digital initiative is likely to struggle. If the focus of these initiatives is to find answers to old questions, the potential benefits will be limited. Thus, strategy, not technology, should drive this transformation. According to most experts, there are four megatrends converging1:

1 Harvard Business Review (2016). “The digital transformation of business”. Harvard Business Review Analytic

Services.

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Box 1. The four technology megatrends 1.

Cloud: using software that is owned, delivered, and managed remotely by a third party on a pay-per-use basis or as a subscription. Style of computing in which scalable and elastic IT-enabled capabilities are delivered as a service using Internet technologies. 2. Big Data/Analytics: high-volume, high-velocity and/or high-variety information assets that demand cost-effective, innovative forms of information processing that enable enhanced insight, decision-making, and process automation. 3. Mobile: deployment of mobile devices and the creation of software applications for these devices for customers, partners, suppliers and/or employees. 4. Social Technologies: online environment where content is created, consumed, promoted, distributed, discovered or shared for purposes that are primarily related to communities and social activities rather than to functional, taskoriented objectives. Source: Harvard Business Review, based on Gartner’s IT Glossary

These trends constitute the future of business intelligence, and at their intersection is where the most interesting things are and will be happening. While it is clear that each one of them can have a meaningful impact in the future of IPAs, strategies that combine and integrate them are expected to yield a stronger impact. Those IPAs that better understand these trends and make a commitment to transform their capabilities with the right technologies will gain a competitive edge against those ones who don’t, reshaping the way they find and interact with existing and future investors and with their stakeholders and collaborators. Unfortunately, the Public Sector tends to lag in digital maturity, being necessary a strong commitment across their organizations—and, especially, an unequivocal commitment by their top management—to begin to catch up. Understanding where their business should go, building up the teams and skills needed, designing the transformation plan, and executing it while deciding what to do when, will be for IPAs challenging and demanding. Adapting their marketing, services, internal resources, processes and networks of partners and collaborators to the new realities will need a strong effort and commitment from their side.

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UNIT 2 MANAGEMENT TOOLS

Learning Objectives  To understand the importance of having appropriate tools in place to organize and manage the IPA and to improve business relations with foreign investors and stakeholders.  To better understand the basic and advanced tools available to manage and expand an IPA's capabilities, as well as to build long-lasting relationships with potential investors.  How CRMs and other internal systems can help along the investment journey.

II.1. CRM Systems II.1.1. Introduction If, as Americans say, “Sales is a numbers game”, why do IPAs pay so little attention to the numbers linked to the sales process? The following figures offer some stats on how salespeople behave on average in European and American B2B (Business-toBusiness) companies (not specifically in FDI, but it can give an idea of orders of magnitude):

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Box 2. Salespeople typical behavior 48% of salespeople never follow up a lead. 25% of salespeople make a second call and then stop. 12% of salespeople make three contacts and then stop. only 10% of salespeople make over three contacts.

This wouldnâ&#x20AC;&#x2122;t be that bad if the reality didnâ&#x20AC;&#x2122;t show that: Box 3. Evolution of sales based on the number of contacts 2% of sales are closed on the first contact 3% of sales are closed on the second contact 5% of sales are closed on the third contact 10% of sales are closed on the fourth contact 80%On24/Imaste of sales are closed between the fifth and twelfth contacts Source: Miguel Arias,

The message is clear: once a proper contact or lead is identified, IPAs need to persevere. CRMs are the best tool available to make sure they do it properly.

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II.1.2. What Is a CRM? Box 4. CRM definitions “Customer relationship management (CRM) is a business strategy that optimizes revenue and profitability while promoting customer satisfaction and loyalty. CRM technologies enable strategy, and identify and manage customer relationships, in person or virtually. CRM software provides functionality to companies in four segments: sales, marketing, customer service and digital commerce.” — Gartner “A CRM is more than software: it is a strategic state of mind which will carry your business on its back.” — Dick Wooden

Beyond the technical definition, CRMs are tools that help organizations to shift and standardize the way they interact and share information with their customers, and also that help them understand their customers’ needs. Companies and institutions alike aspire to reach a holistic view of their customers, and they rely on processes, systems and applications to do it. Within a small team, many things can be handled informally and with a certain amount of individuality, but as organizations grow, they need the appropriate support systems in place and a thoughtful strategy behind them. Successfully implementing a CRM can be one of the most important steps an IPA can take.

II.1.3. Why Do IPAs Need a CRM? IPAs need to be agile, flexible, and fast to meet potential investors’ expectations. But they too often fail to respond fast enough to leads and to these investors’ needs and demands. The ability to provide appropriate support levels is sometimes seen as secondary, but excelling at support can lead to an improvement of an IPAs reputation among investors and multipliers, which in turn can lead to better recommendations, and ultimately to more investments.

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There are several reasons why any organization or institution might wish to set up a CRM:  To centralize its business information, ensuring the continuity of the business against unexpected situations (changes in personnel, new managers, evolution of its structure, etc.).  To provide access to key information anytime, anywhere, during all phases of the investment process. The statuses of the projects are relevant.  To help prioritize work and projects and empower the internal teams.  To help track tasks and events, and drive and organize both sales and services processes.  To ensure that all leads in the pipeline are followed up, in a consistent and appropriate manner, according to que quality levels desired.  To help understand the life cycle of any given project and the expectations of the potential investors.  To provide insights on the activity and lead generation process: metrics and performance indicators are needed to understand the health of the business, at any given point in time.  To analyze why things happened, avoid past mistakes and replicate successes.  To try to predict the future: there is a need to take strategic decisions and analyze trends based on the information available.  To identify bottlenecks and internal needs. The investors’ journey is almost never a straight line, but with enough information, informed guesses on the next steps can be made. Above all, a CRM should help avoid investors’ dissatisfaction, in an environment where leads can take from months to years to materialize, where building relationships is key for the success of the business, and where customer retention is somehow more important than customer acquisition, as reinvestments play a major role in most countries.

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This investors’ dissatisfaction can have many faces, but four are the main sources of it: 1. Inconsistent cross-channel experiences (each member of the team can be understood as a channel on his/her own). 2. Reactive and not proactive customer service. 3. One-size-fits-all customer engagement process, that is, not making each potential investor feel unique and our most important preoccupation. 4. Inefficient agent interactions. All of them can be prevented by putting in place an optimal CRM system.

II.1.4. Who Is a CRM For? Although originally there was a strong link between CRMs and sales activities, nowadays the tools available should be useful beyond that department, as shown in the initial definition. Digitalization affects almost every aspect of the business, and requires a high level of coordination. The benefits of a CRM have to be received (and perceived) across the entire organization:  Marketing & sales: use investor insights, automatically route hot leads for action, track effectiveness of the marketing efforts, hone the precision of the targeting, aid in qualifying leads, etc.  Account managers: nurture leads, avoid duplications, identify potential follow-ups, help prioritize their efforts, measure and compare their performance, access company resources and reuse information, track tasks and events, access information on the go, etc.

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 Board of directors: provide strategic insights, reports on the health of the business, analyze trends, take strategic decisions based on data, help explain the activity of the company (to the stakeholders and beyond), etc.  Investors: make investors and external collaborators feel unique and well served.

II.1.5. Challenges When Introducing CRMs Most CRMs, in IPAs and other kind of organizations, still fail to reach the level of attention and use necessary for them to become the cornerstone they should be and generate business benefits. As other technology tools, they face some identifiable obstacles when newly introduced or changed, but most organizations and their managers don’t usually give adequate consideration to them2.  Awareness: if the team is not aware of the new tools available, what their purpose is, how do they work, and the promised benefits they will bring (to them), it is easy to imagine that the level of adoption and use will be low.  Accessibility: in consumer facing positions, especially in those that require to be often outside the office, the lack of access when on the go is a clear problem that most CRMs still don’t tackle enough.  Usability: some CRM systems still do not show up as being easy to use, and they don’t meet the current expectations of a modern and mobile workforce.  Usefulness: the CRM needs to be useful. It should help its intended users do things they couldn’t do before, or do them better/easier/quicker. It has to fit properly in the existing ecosystem of tools they are already using, and not become yet another obstacle/duty in their daily operations.

Based on Maz Iqbal (2014). “The Six Challenges Involved In Fostering The Adoption Of CRM Systems”.

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 Power: CRM systems can change the balance of power within an organization, giving more power to those in management positions, and depriving the ones who have to use it.  Relationships: CRMs need to fit the existing way of doing things within the organization. If not, there has to be an overall will and agreement to change that way of doing things. “If you think your users are idiots, only idiots will use it.” Linus Torvalds

II.1.6. Practicalities to Take into Account When Putting a CRM in Place The following areas need to be tackled when designing and implementing a CRM for an investment promotion organization:  Information access and control: Who has access to the information? Who introduces it? Who can modify it? Access should be determined by the business needs, leaving the door open for uses one might not initially anticipate. Creating walled gardens of information should be avoided at all costs, and data entry automated as much as possible. It is currently possible to integrate social media listening capabilities, to integrate CRMs with other sources of FDI information through IPAs, to mine unstructured data from selected sources, etc.  Terminology: once a common glossary of business terms is agreed and defined (i.e. what is a lead?), the CRM can help wide-spread and popularize them, inside the organization and among its stakeholders, partners, collaborators. Everyone that uses the data needs to have a common understanding of what the data means and represents.  Data fields & search options: the more information the system holds, the more valuable it becomes, but there needs to be a balance. Automating data entry as much as possible to avoid overloading the team with bureaucratic tasks is key.

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 Data quality: the quality of the services the organizations deliver needs to be monitored, but organizations tend to wait until a major problem arises before doing it properly. The CRM itself should ensure the accuracy, timeliness, completeness and consistency of the data. But in order to do so, quality metrics need to be defined and there has to be someone responsible for it.  Prioritization: measuring priority, time and cost can help the organization take better (informed) decisions. In FDI, it is hard to know in advance the potential results of the resources allocated to any given investment project, but it should be at least easy to determine the strategic interest of every single project.  Alerts and templates: the CRM should help the organization comply with international best practices in terms of times and quality of response. Together with search options and filters, alerts and templates can help improve the efficiency and responsiveness of the whole team. They can be user-generated, time-driven, event-driven or fully personalized.  Dashboards & reporting: make decisions, not spreadsheets. A clear definition of the key performance indicators is needed, to ensure the CRM provides them in a visually appealing and easy to understand manner.  Mobility: organizations need to be ready to deliver the mobile experiences their employees and customers demand. Ideally, the interaction should be designed specifically for mobile environments, turning mobility into a competitive advantage.  Confidentiality levels: confidentiality needs to be ensured toward the outside, but information needs to be easily and transparently shared internally to guarantee adequate levels of service, to avoid internal misunderstandings and to ensure the continuity of the service should anything unexpected happen to the account managers. Trust has more to do with company culture than with technology, but some organizations turn to the latter to force it.

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ď Ž Security: security is an important concern with all four of the megatrends seen at the beginning (cloud, big data, mobile and social technologies). As government agencies, with access to public resources, IPAs need to be particularly careful, but they need to strike a balance. ď Ž Flexibility: life will always be way more complex than the systems that can be designed. With time, complexities and unexpected situations always arise, and the evolution of the investment projects and the relationships with investors are not always linear. It is a common mistake to plan for the exceptions and to try to design the system for any given cases, but it is better to keep things simple and allow some degree of flexibility.

II.1.7. Alternatives As shown on the next figure, the market currently offers a wide array of options for CRM systems:

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Figure 1. Matrix of commercially available CRM systems

Source: G2 Crowd (2017)

Important questions to ask when choosing/designing/implementing a CRM system: ď Ž Expectations: Why do you want a CRM? Is it to centralize the business? To produce better business insights? To have a history of the contacts, leads, deals and conversations? To scale your operations? To enhance productivity? ď Ž Technology/Platform: How much flexibility does it offer? How easy is it to configure the software and to get started with it? How easy is it to integrate data from other sources? How scalable is it? Will it deliver in terms of performance? Will it offer tools to help the team collaborate?

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 On-premise vs. Cloud: ow much mobility is needed? How important are the security concerns? Does the organization have the resources to maintain it on premise?  Customization (generic vs. vertical): Customizing a generic solution can be as expensive as developing one from scratch. Both options can raise issues related to longevity, capability (of the implementation partner), value for money, black boxes, intellectual property, etc.  Legacy: Consider the hardware, software and date the organization is already using.  Budget: How much time and money is the organization willing to spend on the CRM (upfront and on a yearly basis)? Taking the time to understand your requirements and to properly assess the technology options available can have a big payback over a prolonged period of time.

II.2. Other Internal Support Systems Besides CRMs, IPAs can take advantage of a wide array of systems and technologies to improve their productivity and quality of the services they provide. Some of them are already part of the toolset of any service company, public or private, but there seems to be still some doubts regarding the benefits IPAs can get from some of the following:

II.2.1. Knowledge Base and Communication Tools With the rise of the Internet, the proliferation of information in different formats and the popularization of collaboration tools, the information and knowledge within a company tends to be highly distributed. IPAs can take advantage of different knowledge base tools (intranets, collaboration tools, document repositories, etc.) to:

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 Allow sharing and indexing of important documents and information— internally and externally.  Provide support at high speed: summon all their best practices and FAQs in a single place, answer complex questions (internally/externally) with a single link.  Centralize all internal information. In multiple languages. Adapted for multiple device types.  Hold inside information for the team (i.e. training documentation, internal collections, etc.).  Help potential investors and anyone interested in their territories help themselves: provide instant answers online to typical questions and reduce email inquiries.  Improve their online presence: opening all or part of the content generated or curated internally can improve the online footprint of the IPA, making it easier for potential investors to find it, extending their brand presence and improving the SEO of their website.  Allow for real-time team collaboration in the development, review and update of materials, avoiding the existence of multiple copies in different states of development.  Better understand what potential investors are searching for, what are they finding (and not finding), as well as how many of them are still writing in for help after browsing through the given materials. Part of the knowledge generated can be populated to open platforms where questions regarding investing in our territories are raised (e.g. Quora, Teleport), and common questions received can lead to the generation of new content (reports, newsletters, blog posts, etc.). The answers to the FAQs can be a good means for lead generation themselves. The boundaries between knowledge base tools and communication tools are fading, with a strong trend among major technology providers to offer solutions that integrate all communication needs, regardless of the original scope of their tools. 22

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Chats, messaging, voice calls, webinars, intranets, extranets, document repositories and other internal management systems are clearly converging (e.g. Slack, Microsoft’s Teams, Google’s Hangout, etc.). The original differentiation lines between those tools are blurring, and, in turn, the traditional use cases are also mutating. The room for niche applications tends to be narrower, with incumbent players (no matter their size) being forced to adapt. Tools traditionally used by IPAs to organize webinars and other online events are under pressure, as new tools aimed at spreading the message to a broader audience (e.g. online video channels) and tools aimed at connecting at a more personal level (one-to-one or one-to-few) are probably more adapted to their needs and require different types of resources and strategies. The era when IPAs had a single point of contact and control over when and how their messages where sent to the outside is over, and with the need to demonstrate expertise and knowledge to differentiate and prove themselves useful, they need to fully reconsider their communications’ strategies and the tools they are using.

SYNTHESIS OF THE UNIT This second unit has examined the importance of using different tools to organize and manage the IPA, as well as to improve the relationships with potential investors. The activity of IPAs is long-term: the evolution of an investment project is not linear, its life cycle typically spans over years, and IPAs need to deal with a high number of investors that demand to be treated in a personalized and professional manner, with limited human resources. CRMs, in combination with other tools aimed at organizing, standardizing and making the information the IPA generates and curates available, are key to IPAs’ success.

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Bibliography  Arias, M. (2013). “Algunas estadísticas del proceso de venta”. Available at: http://emprenderagolpes.com/algunas-estadisticas-del-proceso-de-venta/  G2 Crowd (2017). “G2 Crowd Grid for CRM”. Available at: https://www.g2crowd.com/categories/crm . Last visit: September 2017  Gartner, IT Glossary. Available at: http://www.gartner.com/it-glossary/  Harvard Business Review (2016). “The digital transformation of business”. Harvard Business Review Analytic Services.  Iqbal, M. (2014). “The Six Challenges Involved In Fostering The Adoption Of CRM Systems”. Available at: https://thecustomerblog. co.uk/2014/03/01/thesix- challenges-involved-in- fostering-the-adoption-of-crm- systems/  Wooden, D. (2013). “Business Success with CRM—Why CRM Needs to Be in Your Strategy”.

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UNIT 3 ONLINE MARKETING AND PROMOTION TOOLS

Learning Objectives ď Ž To provide guidance on how digital means can enhance and complement the marketing and promotion efforts of an IPA. ď Ž To learn how to use the Internet and social networks as marketing and promotion tools, and how they need new approaches and specific content and skills. ď Ž To understand the need to align all promotional efforts to the overall strategy and monitor accordingly.

III.1. Introduction Organizations and institutions are using the Internet and social networks not only to listen to and better understand customer sentiment about their products, brands, companies or territories; they are also using them for strategic purposes like recruitment or HR management, and to foster collaboration internally and with their networks of partners and suppliers. Social is transforming core business processes, and consulting and the business services sector are among the most affected by it.

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It isn’t always clear how to best incorporate social media into core business operations without overloading the team with information and demanding excessive time from them. What seems to be clear is the great impact it can have in their ability to effectively communicate with potential and existing investors, to foster and facilitate employee collaboration, and to improve their ability to provide adequate customer service3. Figure 2. Evolution in communications technologies

Source: Puchades (2014)

As Charlene Li and Josh Bernoff exposed in their Growndswell book4, there has been a strong shift in the relationships between customer and companies/brands, being

Harvard Business Review (2016). “The digital transformation of business”. Harvard Business Review Analytic Services. 4 Li, Charlene and Bernoff, Josh (2008). Groundswell: Winning in a World Transformed by Social Technologies. Harvard Business Press.

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the former now in control of the conversations. There are several tactics that can guide IPAs into using social technologies strategically and effectively, based on listening to potential investors (which implies they need to know where they are talking and who they are talking to), engaging with them about their experiences and feelings, empowering them (through online communities or social platforms) and supporting their own employees.

III.2. Content Marketing in the FDI Space Content marketing has emerged in recent years as an indispensable tool, not only to reinforce the commercialization and customer acquisition efforts made by companies and institutions, but also to strengthen their reputation, to contribute to create and position their brand, and to increase the chances of success of their development. An official web page and the profiles or communication channels opened on the net contribute, in this context, to reinforce the institutions image, complementing the offline outreach and promotion activities already in place, bringing their services closer to a target audience better defined and with a wider geographic scope, impossible to reach through other means. Being just present on the Internet is not enough. It is necessary to participate and to interact with the rest of the users, offering quality content that allows to showcase the qualities that the company or institution offers compared to those of their competitors, as well as to enrich the relationships that they build with the target audience it is intended for. Content marketing represents a key piece of any online marketing plan. Designed from the corporate essence and addressing the needs of the customers, content marketing allows to build links with the users/customers through valuable and relevant content, to generate trust, to increase the traffic to the official website, to build the digital identity within the sector and, ultimately, to enrich the brand. 27

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Is it hence a strategic kind of marketing aimed at attracting new customers and reinforcing the relationships with the existing ones, offering them content that surprises them, that adds value to the user and that allows to build relevant narratives that lay the foundation for the future development of their relationship with the brand. Figure 3. Content marketing

Source: Prepared by the author

It is necessary to put ourselves in the investorsâ&#x20AC;&#x2122; shoes and understand what is of their interest and what kind of content they would like to consume, taking into account the level of knowledge they might have about our institution and its characteristics. One might represent the â&#x20AC;&#x153;bestâ&#x20AC;? territory in the world, but if it is not presented in an attractive manner, easy to buy and digest, this advantage might be meaningless. It is also essential to define which social networks and communication channels are more adequate for our purposes, depending on the content and the market we are aiming at. Most IPAs have made substantial efforts to lay the foundations for future online communication strategies with the set-up, maintenance and update of a website and several profiles in some social networks and online communication channels, but these typically need to be reinforced with a well-designed content strategy. More effort is needed to identify and prioritize the key target markets and areas, as well as to define the kind of messages that need to prevail in each case, according to the overall strategy and to the characteristics and advantages of our territories, and taking into account the existing level of interest in them or the former knowledge those markets may have of them. It is also necessary to analyze the current situation of the market where we want to develop our online communication efforts: what our 28

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competitors are doing, what kinds of content are they generating, which channels and ways to interact with existing and potential investors are they already using, and if they are effective or not.

III.2.1. Typical Mistakes Made by IPAs Understanding that online communication is a means to an end (to attract new companies to our territories, to increase the rates of reinvestment and expansion, to improve the reputation of our territory as the place to be and do business, etc.), there are several mistakes that should be avoided:  The website must not be seen only as the showcase where to promote some of the key aspects about our organization or territory. It should be the cornerstone of the online communication strategy.  Content should be offered in a clear, suggestive and attractive fashion. The level of information available online is excessive, being necessary to make an extra effort to stand out.  The profiles in the different social networks have to be understood as interaction spaces with potential investors and multipliers, not just as bulletin boards.  Content to be shared needs to be useful and address any doubts or needs potential investors might have, not only focus on promoting the services or advantages of the territories.  Each network has its peculiarities and target audience, organized in different communities and with different social and information dynamics. Using the same content in different channels is typically understood as a bad sign.  Diversity is welcomed. Collaborations with experts, room for employees of reference, spaces for open participation and similar initiatives are missing in most online strategies.

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III.2.2. Best Practices Followed by IPAs On the other hand, the best online strategies followed by IPAs are characterized by:  They alternate content that offers value to the user (specific information, entertainment, etc.) and other promotional content.  They make use of varied multimedia formats to communicate and distribute the content (videos, images, infographics, text).  They include both content elaborated in-house as well as content developed by third parties: companies already established in their territories, other official departments, etc.  They rely on a high number of spokespersons to talk about the advantages their territories offer and the quality of the services they provide, helping raise the trust bar and generating more confidence and credibility in their messages.  They offer content that adds general value to the territory they serve, beyond the FDI space. This allows the agency to become a trusted reference for companies or businesses with interest in the area, that demand statistical information, news and reports that portrait the territory, interviews or success stories, news about new contracts or jobs created by existing companies, etc.  They develop different promotional content (videos, images, etc.) for each target or audience, based on a deep analysis of their advantages and the investors’ needs. This also means that they have a multi-language presence.  They analyze the return of the investment of their online presence in a holistic way (not all leads generated online will get in contact with the IPA, and not all of them will contact through the website—ROPO).

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III.3. Outbound Marketing There are currently multiple networks where content can be shared, distributed and disseminated; some of them are based on affinity (common interests), others are based on meritocracy; some are generalist, others are vertical or specialized5. As traditional media, social media is also experiencing fragmentation. Online marketing is becoming overcrowded, with new sources and actors increasingly flooding the space, which demands for strategies that target specific niches, appealing to narrower audiences with specific topics. What it is important to understand is that the distribution of content across different channels follows a pattern based on ripples. Large ripples can have a greater reach, but are usually fewer in number (as their cost tends to by higher, both in economic and time terms); small ripples need to be more targeted, but can be generated in greater numbers: Figure 4. Influence ripples

Source: Armano (2007)

There are several important factors to take into account when engaging with potential and existing investors through social networks:

iRedes maps yearly some of the most relevant social networks and communities: http://www.iredes.es/mapa/

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 Relevance, that is, communicating something of maximum interest in the moment of maximum receptivity. Relevance is entirely subjective; it is based on a strictly individual criterion. “A squirrel dying in front of your house may be more relevant to your interests right now than people dying in Africa.” Mark Zuckerberg, Facebook  Personalization: the future of the web is about personalization, and the invisible, algorithm-based editing of the web is creating filter bubbles6. Different people get different things when searching and surfing the web and social networks. The Internet is showing us what it thinks we want to see, not necessarily what we need to see. “It will be very hard for people to watch or consume something that has not in some sense been tailored for them.” Eric Schmidt, Google  Neutrality: technology is not neutral. “Technology is neither good nor evil, nor is it neutral.” Kranzberg’s First Law  Credentials: the transmitter and the emissary of the message allow veracity expectations to be generated by the receiver. Again, credentials are subjective, based on perception, and have given relevance to the role of influencers (in the intersection of reach, relevance and resonance).

6 Pariser, E. (2011). “The Filter Bubble: What the Internet is hiding from you.” Penguin Press.

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Figure 5. Influencer roles throughout the decision process

Source: Wikipedia (2014)

 Opportunity and context: ubiquity and accessibility have consequences. There is an increasing need to seize the opportunity according to the context of the consumer: location (geolocation), moment (time of the day, social space, personal space), personalization (identity, behavior, social sphere), interface (massive, one-to-one).  Return on investment: organizations can know exactly what’s going on with every dollar spent on the Internet, unlike what happened with traditional types of advertising. “Half the money I spend on advertising is wasted—I just don’t know which half.” Joseph Wannamaker

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III.4. From Outbound Marketing to Inbound Marketing: the Importance of Content Box 5. Inbound Marketing definition “Inbound marketing is a marketing strategy where businesses implement tactics to ‘get found’ by customers. Inbound marketing involves creating and providing valuable content for your customers, promoting your remarkable content, building customer relationships, and overall ‘pulling’ the customer toward you. Inbound marketing strategies create brand awareness, improve Search Engine Optimization, create thought leadership, develop valuable customer relationships, establish credibility, and build trustworthy reputations.” Trust Media

The transition from outbound marketing to inbound marketing can be seen as the shift from cold calling potential investors to pulling them toward your territory. Following this shift, content starts to be differential, while the product (the territory) remains mostly a commodity. As already seen, content marketing is strategic marketing: it is related to the brand or territory, but with the clear aim to generate experiences linked to it. Within inbound marketing, content is key, but it doesn’t exist on a vacuum. There is a need to define the strategy, choose the tactics, and to allocate appropriate resources (which includes developing the adequate skills, and probably cutting budgets from legacy operations). There are several strategies IPAs and territories can follow within their content marketing strategies:

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Table 1. Brand strategy vs. corporate strategy vs. product strategy Brand Strategy

Corporate Strategy

Product/Service Strategy

Brand generation

Change the type of target

Basic service communication

Change in the brand perception

Research

Regulate the production/use

Credibility building

Information distribution

Change the service-profit focus

Engagement

Demand generation

User support

Fight within the category

Exploration of new markets

Improve the user experience

Increase the recall rate

Innovation support

Service personalization

Source: Puchades (2014)

Content needs to serve the strategy and the brand. There are some aspects that need to be extremely clear to avoid risks and loss of focus:  Who is the content intended for?  How often will it be produced and distributed?  When, and how (space and style), will it be distributed?  What experiences will be associated to the content?  How will the success or the return of the investment in content be measured?  What credentials can give credibility to the content? Once the strategy is clearly defined, there are several tactical developments at its service. They are useful for all the different strategic approaches, and they are typically complementary. Most of them can be categorized according to: 1. The role to be played: facilitator (e.g. platform owner), authority (e.g. expert’s blog), aggregator, news producer, customer/investor support, association with other actors, exhibition, etc. 2. The resources available/needed: collaboration with experts, use of employees of reference, open participation, etc. 3. The style: humor, rigorous, natural, etc.

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III.5. The Importance of Response Times and Persistence As briefly mentioned in the first unit about CRMs, companies don’t respond fast enough to leads, and this is particularly critical (and true) in the case of investment promotion organizations. After all the effort made to build their territory’s brand, to tell and disseminate their story, and to create and communicate opportunities investors actually want, there is an urgent need to improve the follow-up process, especially for those leads generated online. There are several studies that suggest that the effort made by B2B companies in customer retention and follow-up of leads generated online is significantly lower that the effort made in marketing and generating them. Wasted (hot) leads and low close rates can derive from no-follow-up, slow follow-up, or low persistence. The opportunities derived from generating a common space for conversation, a space filled with millions of users—thousands of potential investors—are reduced to the minimum because of the inability of institutions to handle such a high volume of potential simultaneous conversations, in different languages. This can be greatly improved with a combination of awareness, best practices and methodologies, and technology. There are different tools available to help build trust and relationships with investors, both as an evolution of traditional channels (web platforms, online tools for one- to-one meetings, etc.) as well as more innovative ones, including:  Bots: pieces of software that can execute commands, reply to messages or perform simple tasks automatically or with minimal human intervention. They are being used in some of the most popular messaging platforms (Telegram, WhatsApp, Facebook, WeChat, etc.), in a fully- or semiautomated way.  Virtual or digital assistants: that can help potential investors locate information, solve doubts and find solutions (technical or not) for their problems. Most of the main technology corporations are betting strongly

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on the space (Apple with Siri, Microsoft with Cortana, Amazon with Alexa, IBM with Watson). They are basically a combination or Artificial Intelligence (AI) and conversational developments. Both approaches can help start or keep the conversation open with potential investors, in their native language, in a personal (or nearly personal) way, before a human project manager can step in, when the leads are mature enough. They can already be excellent at relieving support staff of administrative tasks and helping investors fulfill simple requests and streamline the (initial) conversations with potential investors. As AI progresses and the technology continues to evolve, and as the level of information about the interests and needs of potential investors available to these systems continues to grow, it isnâ&#x20AC;&#x2122;t so far-fetched to consider that they might even be able to play a major role in the process or even replace the real customer service experience.

III.6. Where to start The digital transformation of any company or organization and their focus on content marketing requires a combination of methodology, culture and technology to strengthen the links between the people involved in all business transactionsâ&#x20AC;&#x201D; employees, clients, users, providersâ&#x20AC;&#x201D;It can be broken down in several steps: 1. Create content: relevant, timely, aligned to the strategic plans. 2. Involve their client/target companies in the content generation (success stories, case studies, FAQs, etc.). 3. Learn from the data.

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Figure 6. Example of a social media monitoring platform

Source: Prepared by the author, based on Polo (2014)

4. Add methodologies and persistence: methodologies (strategy, intelligence, creativity, contents, technology, paid campaigns, open innovation, benchmarks, community management, gamification, etc.), brand (visibility, engagement, recommendation, reputation, etc.), sales (lead generation, engagement with investors, conversion, sales networks, etc.), customer development (investor satisfaction, social CRM, loyalty building, etc.), innovation (co-creation, open innovation initiatives, innovation platforms, digital observatory, etc.).

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SYNTHESIS OF THE UNIT This third unit has sought to examine how IPAs can use the Internet and social networks as marketing and promotion tools. Some of the best practices and common mistakes made by investment agencies have been exposed, as well as some of the most important factors to take into account when engaging with potential and existing investors through social networks. The importance of content has also been highlighted, both for outbound and inbound strategies, as well as how the response time to leads generated online is key and how to use technologies like bots or virtual assistants to relieve part of the pressure they generate.

Bibliography  Armano, D. (2007). “Influence ripples + Social media fragmentation”. Available at: http://darmano.typepad.com/logic_emotion/2007/09/influence-rippl.html . Last visit: September 2017  Harvard Business Review (2016). “The digital transformation of business”.  iRedes (2016). “Mapa de las redes sociales y otros servicios en la nube”. Available at: http://www.iredes.es/mapa/  Li, C. and Bernoff, J. (2008). Groundswell: Winning in a World Transformed by Social Technologies. Harvard Business Press.  Pariser, E. (2011). The Filter Bubble: What the Internet Is Hiding from You. Penguin Press.  Polo, J. L. (2014). “Nuevas realidades, nuevos medios: Internet y Redes Sociales en la promoción de IED”. Madrid.  Puchades, R. (2014). “Nuevas realidades, nuevos medios: Internet y Redes sociales en la promoción de IED”. Valencia. 39

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UNIT 4 INTELLIGENCE AND OUTREACH

Learning Objectives  To analyze how technology can help IPAs with their intelligence and outreach efforts.  To understand the potential use of technology for FDI-related research and knowledge building.  To identify some best practices and trends in the use of company, prospects and location information.

IV.1. The Importance of Databases and Information. Latest Trends Data can (and will) play a major role in the FDI space, at both ends of the spectrum: investors are increasingly reliant on data sources and tools to identify, select and compare potential destinations for their investments; IPAs can also improve their ability to identify and track companies in the early stages of their investment process, increasing their chances of building a compelling offer and contacting them at the right time. Data and analysis, together with a disciplined framework for thinking through options, provide a helpful structure for making decisions.

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Humans don’t typically get along well with numbers, and aren’t designed to think in probabilistic terms—statistics are counter-intuitive, as Kahneman and Tversky have repeatedly shown7—Opinions, though interesting, are rendered irrelevant when enough data is available. Still, finding data in the FDI space (may it be raw data, aggregated data, or statistical information already processed), understanding it, conducting predictive analysis, and building a narrative around it, proves to be challenging for most IPAs.

IV.1.1. Track Cross-Border Investments An area where data can offer a strong competitive advantage to IPAs is in the economic intelligence side. On average, there have been around 15,000 Greenfield FDI projects announced worldwide every year since 2010 8, and close to 10,000 additional M&A operations each year; there are roughly 4,000 IPAs around the world, which leaves less than four Greenfield projects per IPA and year. Competition is tough, and in times of scarce resources, it becomes increasingly critical for each territory to focus on those companies that are really looking for the opportunities they offer. From a broader approach (country-wise, sector-wise), data allows to design processes of analysis really focused on specific locations and niches. This approach requires some prior research from the territory side. Once the key sectors have been selected and the real investment opportunities and competitive advantages have been identified, IPAs can: 1. Identify those countries/regions/cities with the strongest potential as source markets for those sectors/niches (to align markets to opportunities). 2. Identify the companies that are (or might be) coming out of them that meet some defined requirements. 7 Kahneman, D., Tversky, A (1979). Prospect Theory: An Analysis of Decision under Risk. Econometrica. 8 UNCTAD. World Investment Report 2016.

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3. Identify the key contacts within those companies. Once the companies and contacts are identified, the outreach team/project managers/lead generation team can do their job (that is, to prepare specific materials and approach them with a proposition they cannot refuse). Data can be used to understand past trends in the internationalization and investment processes, as well as to monitor in real time which companies are investing overseas, or to try to predict which ones are more likely to take the step in the near term. There are tools that can be useful in each one of the steps, though not all of them are specifically designed for investment promotion or targeted at IPAs. Nevertheless, there is an increasing range of options of suites aimed at economic development agencies at all levels. The following table includes some examples of the research and data tools more widely used in the FDI space: Table 2. Research and data tools widely used in the FDI space FDI databases Databases and services to identify target investors across key markets and sectors, analyze trends

FDI Markets

https://www.fdimarkets.com/

EY European Investment Monitor

http://www.eyeim.com/

IBM Global Location Trends database

http://ibm.biz/gltr2016

OCO Velocity

https://velociti.ocoglobal.com/

Oxford Intelligenceâ&#x20AC;&#x201D; Global Investor Watch

http://www.globalinvestorwatch.com/

Conway Analytics Report

https://conway.com/analytics/conway-analytics-report

M&A Operations Monitor and report on transaction activity, market share analysis, and identify new business and investment opportunities

Zephir

https://zephyr.bvdinfo.com

Pitchbook

http://get.pitchbook.com

Thomson Reuters

http://financial.thomsonreuters.com/

Bloomberg

https://www.bloomberg.com/professional/investment-banking/

Venture Capital Information on venture capital deals, startups, investors, partnerships, etc. Early indicators of companies that might be expanding

Dealroom

https://app.dealroom.co

Angellist

https://angel.co/

CrunchBase

https://www.crunchbase.com/#/home/index

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https://www.cbinsights.com

Company Databases Company directories, industry and contact information, profile companies within the target sectors

MINT/Orbis

https://www.bvdinfo.com

Hoovers

http://www.hoovers.com/

Kompass

http://www.kompass.com/

Press Analysis Automate the monitoring of news and press releases related to company operations

Lexis Nexis Newsdesk

https://www.lexisnexis.com

Nuzzel Media Intelligence

http://nuzzel.com/intelligence

Meltwater

https://www.meltwater.com

Gorkana

http://www.gorkana.com/news/

Benchmarking tools Online tools to compare cities and territories based on different criteria, for companies and talent

FDI Benchmark Teleport Source: Prepared by the author

https://www.fdibenchmark.com/ https://teleport.org/

Besides these, there are local databases that can be useful in specific countries, geographic areas or for specific languages. There are also new search tools with semantic- and machine-learning capabilities in development that should reach the market in the coming years. Other databases and tools that can be of special interest for IPAs conducting research can be the different National Investment Registers, construction or real state databases (e.g. http://www.construdata21.com), tools focused on graph analysis to establish relationships among investors (e.g. https://graphext.com/), and others focused on social media monitoring. The next figure shows a good example of the stack of research services used by an IPA:

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Figure 7. Typical stack of research services used by an IPA Internal Database

FDI Database

Press Research

Company Databases

M&A

NRW.INVEST

fDi Markets

WISE

Orbis Europe

Zephyr

Global Investor Watch European

LexisNexis

Gemeinsames

Investment

Registerportal der

Monitor

Länder Meltwater news

Lexis Nexis

Source: Prepared by the author, based on NRW Invest (2017)

These tools can be useful at different levels within the IPA:  Business development: search for specific companies in given key sectors, understand and analyze their global footprint, get contact details in specific source markets, analyze their economic data (employees, sales, turnover, past investment projects, etc.)  Analyze trends: by source markets (number of projects—overall or in specific sectors, growth in the last years, jobs created, capex, etc.), by destination, by industry, by company, location determinants most cited, etc.  Aftercare: analyze all past companies that have moved to a specific geographic area, and include them in the retention and expansion plans.  Policy advocacy: understand the reasons why target companies took the decision to invest in our territory or in other.  Marketing: gather testimonials and public statements of the companies that moved to a given territory in the past.

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IV.1.2. Which Signals Can Be Identified When Tracking Cross-Border Investments? During the early stages of an investment process, there are some steps companies take that generate signals that can be identified and monitored with an appropriate system. These include:  News stating that the company is considering an investment project (new or expansion). These might include press-releases, public statements, declarations during interviews with top management members, indications in their annual reports, etc.  Capital increases, new funding or new resources for expansion, both for consolidated companies and start-ups/scale-ups.  Changes in the investment strategy of a company.  Signing of new contracts with suppliers overseas.  New investments by competitors in specific geographic areas.  Open positions or hiring of key personnel for international expansion.  Use of specific tools to benchmark potential locations.  Etc. Depending on the tools used, different information can be captured at a micro level: specific geographic interest, scale and scope of the investment project, jobs to be created, specific needs, person in charge of the project, etc. At an aggregated level, trends can be identified and used for strategic decisions and future developments and plans.

IV.2. Geo-Referencing of Investment Opportunities: Location Intelligence Geographic Information Systems (GIS) are no longer a niche market used by government agencies, land management companies and geographers. Location intelligence, defined as the capability to visualize spatial data to identify and analyze 45

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relationships, goes beyond spatial analytics of GIS alone, and is steadily becoming a critical core strategy in the competitive global economy 9. The new business intelligence is location intelligence. Companies and public bodies alike have the opportunity to exploit geo-spatial data to create competitive advantages and make better business decisions. Location intelligence allows to harness, store, and use big data in a meaningful and effective way.

IV.2.1. How Can Investment Promotion Agencies and Economic Development Organizations Make Use of Location Intelligence Technologies to Gain a Competitive Edge in their Space? There are typically three steps where public economic development agencies can add and extract value from the information available10: 1. Enriching the data, that is, geocoding it—providing the geographical coordinates corresponding to it— and adding other attributes or dimensions to it (boundaries, points of interest, demographics, income levels, purchasing power, investment levels, etc.). 2. Analyzing the data, by linking different data sets to reveal relationships. 3. Visualizing the data, typically with maps, that allow to identify the proximity relationships, patterns and trends in the data. There are already some interesting examples of communities, cities, regions and countries taking advantage of these technologies to:  Map and offer graphical representations of comprehensive data about their territories and productive spaces for business location decisions.

9 Carto (2017). “Bringing location intelligence to business”. White paper. 10

Forbes Insights (2017). “The power of place. How location Intelligence reveals opportunity in Big Data”.

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 Allow to search and understand the productive spaces and industrial space available, based on specific criteria.  Offer a real-time interactive snapshot of what’s going on in their territories regarding FDI.  Assist in navigating their demographics, economic patterns and infrastructures.  Provide access to large amounts of local data where geo adds a valuable dimension (underground networks, rail, air connectivity, population growth, commercial output, etc.).  Aggregate information based on geo-spatial boundaries (natural, geopolitical, user defined).  Showcase existing city development networks and future investment projects, and display the potential opportunities the territory offers.  Analyze the local business clusters (suppliers, providers, competitors, talent, resources, etc.).  Build integral reports on their territories, including site and community specific demographic and business data, talent pools, consumer spending, housing, wages, etc.  Perform some guided/assisted data analysis.  Compare key performance indicators against other territories.  Offer information on the real-estate markets, price changes, properties available, etc. Although these tools are normally seen as useful in the last stages of the investment process, and seem to be particularly useful when selecting the final location for the business, they can also provide the host with very valuable insights on the use it’s being made of them (which companies are accessing and using the tools, where are they based, what are their expectations, what are they looking for, with which territories are they comparing ours, etc.). Properly designed, they can help the territory build and disseminate its sales narrative and even become the single point of entry for site selection. 47

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Figure 8: Use of location intelligence tools by Grow.London

Source: Carto & Grow.London - http://grow.london/

Figure 9: Use of location intelligence tools by Sifdi

Source: SIfdi - http://sifdi.com/mapa-ccaa.html

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Figure 10: Use of location intelligence tools by Berlin

Source: Berlin Business Locator Center - https://www.businesslocationcenter.de

IV.3. “ConnectAmericas” and “Invest in LAC” Platforms—How to Take Advantage of Them? IV.3.1. ConnectAmericas ConnectAmericas11 is an online platform where companies can find all the tools they need to grow their business. This platform lets users get in touch with business owners and entrepreneurs through their specialized communities, find companies to do business with, discover new deals, learn about financial opportunities and about international trade, and participate in events across the Americas. ConnectAmericas is the first social network for businesses in the Americas, aimed at helping small and medium size enterprises in the region overcome obstacles and expand their market access abroad. It is dedicated to promoting foreign trade and international investment. It offers services at no cost which allow companies to:

11 https://connectamericas.com/

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ď Ž Connect to potential clients, suppliers and investors, segmented by industry, in a secure, confidential and transparent environment. ď Ž Learn about international trade, standards and business intelligence, through articles, webinars and online courses. ď Ž Receive information on trade and financing opportunities through commercial banks, investors and through the IDB. This innovative platform allows IPAs, specially (but not only) in Latin America, to promote their services and connect with businesses taking their first international steps, answering their doubts, offering them learning and reference materials (on regulatory, strategic, financial and cultural issues, etc.), investment opportunities, or tips for expansion. As will be later seen in unit III, vertical social networks like this deserve greater levels of attention, as can become major conversation hubs with potential investors, especially through their communities. These are currently organized by sector or bay category, and generate the possibility to generate conversations about topics of general interest about any given territory or international issue.

IV.3.2. INVEST in LAC INVEST in LAC12, on the other hand, is a platform that offers selected and organized information related to each country in Latin America and the Caribbean. It allows to find and analyze, within a unique platform, all the data, statistics and key indicators needed by companies, entrepreneurs or researchers to understand the region. It enables them to delve into the attractiveness of each country and make investment or commercial activity decisions. It helps compare and understand the reality of the different countries, and learn from the success stories of companies that have already decided to move forward with their establishment plans.

12 http://connectamericas.knoema.com/

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The main advantages offered by the tool are, on one hand, the availability of trusted and updated information and socio-economic and sector indicators about the countries in the region. These indicators can be easily compared across countries, which enriches the analysis basis both in terms of quality and quantity. Besides the interactive charts and maps offered in the platform, data can be exported easily to other standard formats if needed, making it easier to build reports or integrate them with other tools. For every country, the tool offers:  Contact details and services provided by the National Investment Agency.  Country data: basic country data, economic indicators, stats on foreign trade and investment, social indicators, information on strategic sectors, taxes, etc.  Links to relevant public organizations of potential interest for investors.  Main reasons to invest in the country.  Selection of success stories and determinants of their investments. The interactive comparison module allows to compare countries based on macroeconomic factors, taxes and regulations, political stability, demographics, human capital and labor market, infrastructures, natural resources, environmental issues, foreign investment and trade, logistics, etc.

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SYNTHESIS OF THE UNIT This last unit has focused on the importance of databases and information and how some IPAs are using different databases and tools for business development, to analyze trends, within their aftercare efforts or for marketing purposes. It has offered some hints on which signals to track when trying to identify companies in the early stages of their investment process, as well as on how to use location intelligence to gain a competitive edge. It has also explored the opportunities offered to investors and IPAS by platforms like ConnectAmericas and Invest in LAC.

Complementary Material Books  Christensen, C. (1997). “The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail”. Harvard Business Review Press. Available at: http://www.claytonchristensen. com/books/the-innovators- dilemma/  Li, C.; Bernoff, J. (2011). “Groundswell: Winning in a World Transformed by Social

Technologies”,

https://hbr.org/product/

Harvard

Business

Review.

groundswell-expanded-and-

Available

at:

revised-edition-

winning-in-a-world-transformed-by-social- technologies/10256E-KND-ENG  De la Torre, J.; Giraldo, S. (2016). “Location intelligence for dummies”. Carto. Available at: http://go.carto.com/get- location-intelligence-fordummies

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Videos  Pariser, E. (2011). “The Filter Bubble: What The Internet Is Hiding From You”. London School of Economics and Political Science (LSE). Available at: https://www.youtube.com/watch? v=Dua_UvR5mtI

Posts/Podcasts  Futurizable (2017). “Estado del arte en el desarrollo de chatbots a nivel mundial”. Available at: http://mailchi.mp/ 553aec1a3d3c/chatbots  Evans, B. (2015). “16 mobile theses”. Available at: http://ben-evans.com/ benedictevans/2015/12/15/16- mobile-theses https://soundcloud.com/a16z/ the-year-in-mobile-with- benedict-evans

Bibliography  Angellist: https://angel.co/  Berlin Business Locator Center: https://www.businesslocationcenter.de  Bloomberg: https://www.bloomberg.com/professional/investmentbanking/  Carto (2017). “Bringing location intelligence to business”. White paper.  CB Insights: https://www.cbinsights.com  ConnectAmericas: https://connectamericas.com/  Construdata: http://www.construdata21.com  Conway Analytics Report: https://conway.com/analytics/conway-analyticsreport  CrunchBase: https://www.crunchbase.com/#/home/index  Dealroom: https://app.dealroom.co  EY European Investment Monitor: http://www.eyeim.com/  FDI Benchmark: https://www.fdibenchmark.com/  FDI Markets: https://www.fdimarkets.com/ 53

Toward the Next Generation of IPAs. 1st Edition

Module 6

 Forbes Insights (2017). “The power of place. How location Intelligence reveals opportunity in Big Data.”  Gorkana: http://www.gorkana.com/news/  Graphext: https://graphext.com/  Grow.London—Map London: http://grow.london/  Hoovers: http://www.hoovers.com/  IBM Global Location Trends database: http://ibm.biz/gltr2016  Kahneman, D.; Tversky, A. (1979). “Prospect Theory: An Analysis of Decision under Risk”. Econometrica.  Kompass: http://www.kompass.com/  Leads Origins: https://www.leadsorigins.com/  Lexis Nexis Newsdesk: https://www.lexisnexis.com  Meltwater: https://www.meltwater.com  MINT/Orbis: https://www.bvdinfo.com  NRW INVEST (2017). “Germany at its best, Informationsquellen”.  Nuzzel Media Intelligence: http://nuzzel.com/intelligence  OCO Velocity: https://velociti.ocoglobal.com/  Oxford Intelligence—Global Investor Watch: http://www.globalinvestorwatch.com/  Pitchbook: http://get.pitchbook.com  SIfdi—La Inversión Extranjera en España: http://sifdi.com/mapa-ccaa.html  Teleport: https://teleport.org/  Thomson Reuters: http://financial.thomsonreuters.com/  UNCTAD (2016). “World Investment Report 2016”. http://unctad.org/en/pages/PublicationWebflyer.aspx?publicationid=1555  Zephir: https://zephyr.bvdinfo.com