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MGI Research Methodology

MGI Research’s mission is to provide clients with Actionable Intelligence based on our proprietary quantitative and qualitative research processes. MGI’s benchmarking database is the foundation upon which the research library is built. Using MGI’s Actionable Intelligence, clients measure their progress and make critical go/no-go decisions. Investors use MGI Research to gain an edge in understanding technology companies. CEO’s and management teams use MGI to benchmark their performance rela-tive to peers. MGI’s proprietary, in-depth technology industry benchmarks and analysis distill a complex stream of data into clear-cut recommendations.

MGI Research combines both qualitative and quantitative approaches to industry analysis (see Fig.1). The research is forward-looking, and firmly rooted in economic reality. MGI Research deliverables in-clude sector benchmarks, research capsules focused on specific industry trends, company assess-ments, and forward-looking technology scenarios that inform a client’s decision-making process. MGI Research clients include company CEOs, CFOs, senior sales and marketing executives, board mem-bers, investors, bankers, industry analysts and buyers of technology products. MGI Research services do not provide BUY and SELL recommendations, but rather bridge the gap between trend-oriented, long-term information provided by industry analysts, and the short-term, penny per share perspective of Wall Street research.MGI Research produces a highly structured set of research deliverables that fol-low a well-defined and disciplined methodology.

The qualitative research process at MGI relies on primary research and access to an extensive network of technology industry contacts. MGI analysts focus on identifying and monitoring key indicators of change in various industry trends by isolating trends that have disruptive potential. Within the research process, the analysts define key issues and trend indicators, gather field data, formulate prognosis of possible outcomes and outline mid to long-term scenarios with an objective of translating this research into relevant and actionable client advice – what is referred to as “Actionable Intelligence”. A key technique of MGI scenario development is the Discontinuity Analysis, - a process of analyzing the interplay between current (incumbent) and emerging (challenger) trends and a review of economics, technology, and user adoption factors that can drive either a continuation or a breakage in the current trend.

MGI quantitative research process (a.k.a. MGI Benchmarking) complements the qualitative scenario by analyzing financial and operating data that publicly listed technology companies file with securities regulators. MGI Benchmarking generates proprietary indexes that measure and rank operating effi-ciency of technology firms. MGI Benchmarking metrics are completely quantitative and computational in nature and involve no analyst input.

The relationships amongst the various elements of MGI research methodology are shown in Fig. 2.:

The MGI research process never ends. Its continuous nature causes scenarios and MGI benchmarks to be updated on a regular basis.

MGI Benchmarking

The Benchmarking practice of MGI Research utilizes quantitative methods to analyze and compare the performance of technology companies in various sectors. The Benchmarking practice is centered around a number of computationally-derived indicators that focus on specific aspects of a company’s performance. The indicators help management teams, boards, and investors benchmark operating per-formance vis-à-vis their peer group of companies and identify areas for improvement. The MGI Bench-marking Practice is delivered to MGI clients as part of MGI Research Advisory Services.