1. OECD World Forum “Statistics, Knowledge and Policy”, Palermo, 10-13 November 2004 1

2. OECD World Forum “Statistics, Knowledge and Policy”, Palermo, 10-13 November 2004 2 Emilio Rossi Managing Director European Consulting Global Insight

3. OECD World Forum “Statistics, Knowledge and Policy”, Palermo, 10-13 November 2004 3 Globalisation  Greater Need for Indicators  Corporations use indicators in many aspects of their decision-making process  Long-term planning  Market planning  Selection of foreign investments  Budget  Treasury, etc.  Corporations’ use of data depends on many factors  Company size  Company’s sector  Company’s end- markets

4. OECD World Forum “Statistics, Knowledge and Policy”, Palermo, 10-13 November 2004 4 Features of Data and Indicators Indicators MUST be:  accessible  timely  trustworthy  easy to use  easy to understand  scientifically sound…  …but companies need order of magnitude

5. OECD World Forum “Statistics, Knowledge and Policy”, Palermo, 10-13 November 2004 5 Structure of Country Risk Analysis Overall Country Risk Investment Modules Country Risk Events Global Background Risks Overall Index-Weighted Measurement Application of Indicators Specific to Company Segments Economic: Domestic Demand, Currency, Inflation, Interest Rates, Taxes, etc. Non-Economic: Political Stability, Education, Crime, etc. Economic: Growth, Oil Prices, Exchange Rates, etc. Non-Economic: Wars, Terrorism, etc.

6. OECD World Forum “Statistics, Knowledge and Policy”, Palermo, 10-13 November 2004 6 Risk and Reward Trade-off: Selected Countries A composite measure of risk facing companies selling to consumer markets Risk vs. Reward comfort level? High risk markets offering poor growth Lower risk, high opportunity markets Risk vs. Reward

7. OECD World Forum “Statistics, Knowledge and Policy”, Palermo, 10-13 November 2004 7 B2B & Consumer Goods Industries Use Different Indicators Macroeconomic Analysis Analysis of Business Activity End-User Segmentation B2B & Consumer Market Demand Household Demographics Consumer Segmentation Database integration, statistical analysis, and econometric modelling help to capture the complex relationships between market characteristics and market size.

8. OECD World Forum “Statistics, Knowledge and Policy”, Palermo, 10-13 November 2004 8 DuPont Market Index (DMI) - A Step Beyond GDP Sale Shares of Product XYZ by Segment  DMI ties Indicators of end- markets with the share of sales by segment  DMI allows to articulate alternative scenarios  The reliability of DMI depends on how granular the end-market breakdown can be

9. OECD World Forum “Statistics, Knowledge and Policy”, Palermo, 10-13 November 2004 9 Corporations Hunting for Data & Indicators  Corporations often have to rely on Industry Associations or Private Data Providers  Own Sector  Use own Data - Level of detail unrealistic target for Statistical Institutes  End-market Sectors  the more granular the better  Industry Association Data only for members, use different classifications  Private Data Providers affordable only for large companies  Main Issues:  Non-OECD Countries  Geographical Disaggregation (Regional, City, etc.)  Service Sectors Breakdown  Specific Sectors (Construction, Packaging, Finance, Tourism, etc.)

10. OECD World Forum “Statistics, Knowledge and Policy”, Palermo, 10-13 November 2004 10 How to Make Business Count ? Private-Public Partnership ?  Should Statistical Institutes gather new data for new Indicators ?  Deeper Sector / Geographical Breakdown  Leading indicators  Company information  Financial market data, etc.  Technology may give access to as yet untapped databases – private and public  Chambers of Commerce  Tax Files  Stock Exchanges  Industry Associations, etc.