DECIDING WITH CONFIDENCE
Supporting Business Development Research
C2ER
June 7, 2012
Chip Rogers, Director of Business Development, D&B State & Local
Government
Agenda Topics
I.
II.
III.
IV.
Review of Dun & Bradstreet – World leader of business insight
Economic Opportunities in State and Local Government
Hoovers
How our other Economic Development Clients are using MI – BDP’s
a.
b.
c.
d.
e.
V.
Integration of client / customer data – MI MEDC
Customizing MI with Industry Clusters – NY Empire State Development
Prioritization using predictive scores – Florida Chamber Foundation
Regulation – CA Air Resource Board
Export Initiatives – LA Regional Export Council
Questions
2
D&B clients have access to nearly 100mm active businesses around the
world, to fuel it’s economic growth initiatives
D&B & the Global Economy
1.5 M
43 M
23 M
~
11 M
400 K
725K
7.1 M





Deeper Economic Development analytics and benchmarking
Building an Economic Development Strategy based on business community potential
Research & Development of key industry targets / Company profiling and segmentation
Track and document performance (e.g. business migration, job creation, etc)
International Trade Initiatives that impact Foreign Direct Investment
3
For over 170 years, D&B has been providing business insight and today
is tracking over 200M* business locations globally
Global Data
Collection
Trade Data (7K sources)
Banking Information
Court & Legal Filings
Business Internet Data
Business Regis./UCC Filings
Newspapers & Publications
Telephone Interviews
Company Financials
D-U-N-S®
Number
Entity
Matching
Patented process
to ensure data
collected is
mapped to the right
business
Most recognized
unique identifier for
a business site
globally.
Customs &
Homeland Security
requirements have
DUNS
requirements
Corporate
Linkage
Globally tracking
close to 15M
records that are
linked through
Parent and Child
relationships.
Predictive
Indicators
Statistically based
models to predict
future business
outcomes. COTS
Commercial Credit
Score and
Financial Stress
Score
Other Public – ie AMS & govt
* Includes all inactive D&B records
4
Economic Opportunities in State & Local
•
In 2011, D&B tracked almost 50,000 Businesses who moved from one state to
another
• The highest concentration of activity was in CA, TX and FL
•
There are Huge opportunities To Improve the Fortunes of your
State/County/Municipality by bringing in the RIGHT Business
• Higher paying jobs
• Larger Tax Base
• Positive Impacts on Commercial and Residential Real Estate
•
There is also Peril in this Economic Endeavor
• Some Businesses do not deserve your investment in Time, Resources and
Incentives
• Will they take the incentives and not be around a year from now?
5
D&B and Economic Development
•
•
•
•
Currently 30% of States use D&B for Economic Development Programs
We expect that % to almost double in the next Two Years
We are best suited to help you:
• Acquire
• Retain
• Service
• Grow
We Can help you answer:
• What is the Demographic Breakout of our Market/State/County, etc?
• What businesses should we target for incentives to move to our Market?
• Who in State needs our help?
• Who should we avoid?
6
Data will assist you in your ED Efforts
•
Having access to a Full Suite of Demographic Data on all Businesses will help
you understand your current market as well as your Strengths and
Weaknesses
•
•
•
SIC/NAICS
DIVERSITY STATS
EE RANGES
•
Combine the Demographic Profile Data with Employment Data on your
Workforce Resources and you have a “Good Start”
•
Add to the mix, Credit Worthiness of a Firm(s) and you limit your exposure
•
Understand your Goals and Targets
•
Query from a Tool that gives you access to Business Data, Contacts and Titles
within the Your “Targets” and you can Proactively engage in Economic
7
Development Activities
A Best Demonstrated Practice for State and Local Economic
Development is to utilize a full toolset of D&B solutions to
revolutionize their Economic Development initiatives
 Analyze Global Marketplace
– Combining internal information with D&B information to understand key business
characteristics to aid in finding expansion wins
– Measure success of retention, expansion & attraction programs
– Develop key business clusters and profiles to determine new in-state opportunities
for expansion/retention and domestic/global opportunities for expansion
– Generate targeted outreach lists for Business Development Specialists
 Business Profile for Call Preparation
– Deep dive on company and industry to prepare for client meetings
– On demand list generation
 Industry Analysis for Call Preparation
– Helps BDS associates understand complete picture of industries of interest
– Competitive benchmarking
 Assess Risk of Businesses
– Monitor Tier 1 State businesses for deterioration and intervention
(retention/expansion)
– Complete financial condition of business – Call Prep
– Prioritize activity based on business risks and opportunity
– Final “underwriting” to ensure State resources are appropriately awarded
8
Hoovers provides a Full Researching Tool
9
Hoovers can assist with the following:
10
D&B Market Insight Overview
• D&B Market Insight is a quick-to-implement, cost-effective marketing
application empowering you to profile your State, build Grade A target
lists, and make smarter marketing decisions
• Integrates your internal information with demographic profiling data from
D&B in a hosted solution
• With a wide range of descriptive and predictive analytical tools, Market
Insight’s analysis options are virtually unlimited
• Offers the functionality and performance that marketers need with an
architecture that is easy for IT to adopt and support
• Integrates with CRMs, MDMs and ERP’s
11
When Targeting Companies, Do not forget Credit
Worthiness!
• The Financial Stress Score predicts the likelihood that a company
will experience one or more of the following conditions over the
next 12 months, based on the information in D&B’s files:
 Obtaining legal relief from creditors,
 Ceasing business operations without paying all creditors in full,
 Voluntarily withdrawing from business operation, leaving unpaid
obligations,
 Going into receivership or reorganization, or
 Making an arrangement for the benefit of creditors
• D&B suggests using a FSS of 1-5 within MI to help target worthy
businesses for retention and for recruitment
12
Market Insight will provide you with a comprehensive,
detailed view of your marketplace, so you can make
smarter marketing decisions
•
•
Gain more insight on the demographics of your state by overlaying the in-depth
data D&B holds on those businesses
Identify businesses that:
• Should be recruited
• Should be retained
o Are they a large employer?
o Big Tax Revenue Generator?
o Do they Fit a niche industry profile that is important to us?
• Need Financial assistance
• Are growing – D&B will provide 3 and 5 year trends
• Businesses not worthy of your time, attention and investment
o Poor Credit Risk
o Likely to “Close Doors” within a Year
o Looking for Incentives to stay AFLOAT
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Within the Market Insight application, you have access
to a custom marketing database built and managed
exclusively for you
• Your prospect universe can consist of more than 35 million business records
globally linked records or more than 100 million businesses around the world
• D&B updates its global database each month without interruption to service
• Easy Download
• Market Insight has Professional Contacts = Database of almost 20 million
people
• Email and Direct Dial
• Search Database by Title
• Market Insight allows for Integration into SFDC
14
D&B Market Insight: Data visualization tool that
allows Clients to see and interact with D&B’s local and
global business data
Market Insight gives you the ability to create
interactive charts, graphs and maps to
present your data in an understandable and
interesting format.
Illinois
Note: The visual illustrated above requires the use of Microsoft MapPoint which
is not included
• Export dynamic charts
and graphs straight to
Excel, Word or PowerPoint
• Perform radius selections
of businesses, drive-time
analyses and route
planning within the map
function
15
Explore a companies global corporate family tree
within Market Insight
Nobody builds more corporate family trees than D&B, and nobody offers the depth and breadth that
we do. Corporate linkage can open up untapped opportunities by identifying decision-making
locations and non-buying family members within your customer’s enterprise.
16
Let’s look at a Real Use Case
State Industry Analysis using Financial
Stress Score
17
Analyze for Market or your Potential
Market
•
We took a view of businesses in Oklahoma
•
Then only asked for Manufacturing Companies
•
Then we asked MI to analyze them by:
•
Employees at that Location and
•
by Financial Stress Score
•
The result is a breakout of the Oklahoma
Manufacturing Sector by Size and Financial
Stability
Unclass
ified
1 - LOW
2
3
4
5 - HIGH
TOTAL
No Data
or 0
17
1
8
98
174
309
8
615
1-4
93
9
20
1,075
1,910
2,027
134
5,268
5-9
23
5
14
456
443
293
42
1,276
10 - 14
9
1
19
169
200
167
20
585
15 - 19
6
0
12
97
89
94
13
311
20 - 29
10
0
7
102
137
136
13
405
30 - 49
4
1
13
83
143
120
11
375
50 - 74
3
0
13
54
70
71
8
219
75 - 99
3
0
6
35
51
35
4
134
100 - 199
4
2
10
51
72
57
1
197
200 - 249
0
0
1
15
14
10
0
40
250 - 499
1
1
2
24
45
26
0
99
500 and
over
3
0
1
13
11
22
1
51
176
20
126
2,272
3,359
3,367
255
9,575
TOTAL
Produced using D&B Market Insight
0 - OUT
OF
BUSINE
SS,
BANKR
UPTCY,
HIGHER
RISK
18
Chart View of Spreadsheet
“Who would you Target?”
Produced using D&B Market Insight
19
Typical states will use D&B’s Market Insight solution (MI) to facilitate
the research and development needed to effectively administer
initiatives to maintain and grow business activities within the State
•
•
•
•
•
Company profiling and segmentation – MI enables the analysis and profiling of businesses by a
combination of D&B elements, e.g. by SIC or NAICS code, employee size and sales volume.
Access to Deeper Economic Development analytics and benchmarking – In addition to providing
business intelligence on all companies, MI also provides access to 100 million domestic US or Global
businesses for querying and developing market reporting and analytical scenarios to drive growth
initiatives.
Building an Economic Development Strategy based on business community potential – MI
provides the ability to identify and rank the potential of businesses based on similarities to your
targeted high growth areas. By adding some basic selection assumptions you can analyze companies
to determine profitability for a given campaign
International Trade Initiatives – D&B Market Insight not only houses a complete list of US
businesses, but also contains all D&B Worldbase companies - foreign businesses linked to affiliates
in Your State. You will have a detailed view of corporate family linkage for targeted trade and Foreign
Direct Investment objectives
Tracking/Merging/Suppression of previous campaigns – MI allows for easy tracking of companies
used for specific programs so that successful campaign populations can be mailed to again and
previous responders suppressed. Also, several populations or waves of responders can easily be
combined for analysis to refine targeting criteria for future campaigns
20
Some examples of where States currently utilizes D&B’s Market
Insight solution (MI) to facilitate research with a goal of maintaining
and growing business activities within their State
•
•
•
•
Top Employer Lists - generated in MI based on the total amount of employees and the opportunity
for growth (report created with in conjunction from other economic development sources such as
annual budget book). High growth employers are then targeted for participation in business
development programs
Tax Program - MI used to identify target businesses affected by a new tax, provide them education
through outreach and help enforce compliance.
Environmental Quality campaigns - through targeted outreach programs and education on new
standards and compliance. States are able to help proactively meet EPA regulations & requirements,
and help businesses before they potentially run into trouble (for example, generating a contact list of
dry cleaners that require strict adherence to a new hazardous chemical disposal regulation). The
results are seen through aggregate growth in the industry and the improvement of employment
statistics within your State
Workforce Development - through the identification of high growth industries using MI, and the
placement of individuals in related occupations.
21
Case Study #1 : Integration of client & customer data
– Michigan Economic Development Corp
•
•
•
•
MEDC uses D&B information in conjunction with their CRM system, to track performance of business
entities working with their business development team, measuring changes in number of employees,
sales volume, financial stability, etc. – very important in reconciling their current and future incentive
funding.
The Market Insight tool is used to capture a statistical “snapshot” of information for these businesses
through a monthly download process. Control groups are categorized by incentive date, program
name, region, etc. with trending information developed over time.
Pure Michigan Business Connect Economic Gardening Pilot Program for second stage growth
companies is a focus area for MEDC in 2012, where future Economic Gardening programs are
expected to expand significantly (focus on second stage companies with 10-99 empls and $1-$50mm
sales).
D&B continues partnering with MEDC in 2012 through the deployment of its Market Insight analytics
tool, in the area of Retro-analysis projects to track predictive indicator and demographic data points
(combined with statistical performance) over time, Economic Gardening projects, and various Export
initiatives focusing on business attraction & export assistance.
22
Case Study #2 : Customizing MI with Industry Clusters by Region
– NY Empire State Development
•
•
•
NY ESDC currently uses the information obtained from D&B’s Market Insight, for longer-term and
other more strategic ad-hoc reporting to build and feed a monthly Dashboard that is used by all 10
New York state Regions. D&B built a custom variable to allow easy segmentation by NY Region
Related specifically to their Regional Economic Development Council, D&B’s Market Insight is
currently helping ESDC prepare specific reporting and recommendations for each of the 10
Regions, and was one of the authoritative sources of information to submit the 5-year plan
submitted last November 2011. D&B’s primary goals in this partnership is working with ESDC
to identify and incorporate ESDC data into Market Insight that supports ESDC’s mandate to
develop a Business Climate Report due to the Governor’s office December 31, 2012.
One of the critical elements used to present results is an Industry Cluster – D&B also built this custom
variable using a pre-defined list of NAICS codes, allowing easy segmentation for their reporting needs
23
Case Study #3 : Prioritization using predictive scores
– Florida Chamber Foundation
•
•
The Florida Chamber Foundation functions as a research organization and problem solver working
closely with The Florida Chamber of Commerce and the Florida Office of Trade, Tourism, and
Economic Development (OTTED). The objective of all three organizations is to advance and promote
a healthy Florida economy with a Point of Arrival being reached by 2030.
The objective for D&B’s Market Insight system is to enhance the Florida Chamber Foundations
research and analysis capabilities. It’s success will be measured by the Foundations ability to:
Provide data access for all state constituents, identify trends and measure how well businesses do
over time. Primary measure of success will include loading 4 indicators they’ve created, using data
pulled from Market Insight, into their Florida Scorecard, such as
•
•
•
# Business Relocations
2nd Stage Firms (Gazelle Companies)- Classified by industry and defined as: Under 99 employees, having
under $50m in sales, 100% growth over the last 3 years,
Florida Industry Financial Health Score and a Small Business Risk Score are both generated using D&B’s
Financial Stress Score (FSS) to predict the likelihood of business discontinuance over the next 12 months
24
Case Study #4 : Regulation
– CA Air Resources Board
•
•
•
•
CA Air Resources Board (CARB) has a mission to promote and protect public health, welfare and
ecological resources through the effective and efficient reduction of air pollutants while recognizing
and considering the effects on the economy of the state. CARB is responsible for reducing
Greenhouse Gas emissions through innovative regulatory programs and clean-air technologies.
Regulations must be fair for California businesses, result in a tangible reduction of GHG, be
measureable and enforceable through compliance and monitoring, and foster economic growth in
California.
CARB currently leverages the D&B Market Insight solution to support these research and
enforcement activities. Market Insight provides CARB with a comprehensive database of all
businesses in the United States to perform impact analysis on upcoming regulations and enforcement
programs.
Working in partnership with D&B, CARB has tailored the Market Insight application to create a unique
solution specific to environmental quality in the state of California. This solution becomes even more
powerful with each research program or enforcement activity integrated within Market Insight.
The following projects have been initiated and are either ongoing or have been completed using MI:
Low Income Analysis, Business moves into and out of the State of California, Air Toxicity, Diversity
among Auto Dealers, Emitting Facilities, Prototype of Electrical Spend models, Air Quality Districts
25
Case Study #5 : Export Initiatives
– LA Regional Export Council
•
•
•
•
The Export Council is a collaboration of regional export service organizations including seven key
partners: The Los Angeles Mayor’s Office, the Los Angeles Area Chamber of Commerce, the Centers
for International Trade Development (CITD), the USC Center for International Business Education
and Research (CIBER), the UCLA Center for International Business Education and Research
(CIBER), the Port of Los Angeles, and Los Angeles World Airports
Primary mission is to identify and expand the number of businesses conducting export activities
LA’s primary goal is to double regional export levels in five years by expanding access to market
research, streamlining export services, and providing networking opportunities for export-ready
companies
To increase exports and accelerate Trade Connect, Market Insight will help LA Port and LAWA’s target
the most attractive firms for outreach, programs, and seminars 50 miles from the Port/LAX or across
the United States
26
In closing…….
• By utilizing 3rd Party Business Data and Tools you can:
•
•
•
•
Find the right businesses to retain
Find the right businesses to recruit
Find the wrong businesses for recruitment and AVOID them!
Become a revenue generating arm of your local and state
government
27
D&B Contact Information
Chip Rogers, Director of Business Development
rogersc@dnb.com
(954) 396-6997
Tim Gray, Government Customer Manager
grayt@dnb.com
28