John Sviokla - Creating an Information Advantage

Creating an Information Advantage March 2, 2009 John Sviokla john.sviokla@diamondconsultants.com

We Co-Evolve with our Tools Two Distinctive Things About Humans are our Social Grouping and Co-Evolution with Our Technologies and Methods Page 2 | ©2008 Diamond Management & Technology Consultants, Inc.

How Can We Augment Groups to Perform Urgent, Complex Work? Urgent Complex Work Faster Co- Humans Tools Evolution is • Training • Capability the Core of • Raw intelligence • Flexibility Information • Method • Sharing Advantage • Control Page 4 | ©2008 Diamond Management & Technology Consultants, Inc.

Levels of Knowledge • Cross train Call Center employees Level A: Improve • BMW • Diageo Level B: Create an • Live Ops – quality / access Improvement Process • Demand Estimator • Toyota Level C: Improve the • USAA Improvement Process • Blue IQ Page 5 | ©2008 Diamond Management & Technology Consultants, Inc.

Level A – Improve: COGS- New Product Introductions Customer Data Integration and Decision-Making • Piloted demand-driven replenishment system in 17 markets • Launch Success Model forecasting accounted for: • effects of price, • promotions, • seasonality, • sales velocity of items, % Brand Share • day of week and 0.016 • delivery constraints 0.014 • Pilot improvements scaled to span across the 0.012 company’s 1000 Area Sales Managers who will 0.01 use the system on a daily basis 0.008 0.006 0.004 Potential Opportunities 0.002 • Develop a flexible technology platform to help 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 increase measurement and evaluation -0.002 Weeks After Launch • Provide robust analytic and reporting capabilities Currently scaling nationally based on to improve performance measurement and initial pilots in 17 markets decision-making Page 6 | ©2008 Diamond Management & Technology Consultants, Inc.

Level B – Improve the Process: True Performance of Agents Top Markets with Agent-Market Heat Map No Agents Market Bad Competi- Market Agency/ tive Growth Good Markets Index Index Market Xxx, PA 15 110 Yyy, NY 90 130 Zzz, KS 30 200 Lll, IL 40 148 Good Ppp, MD 35 157 Agency/ Bad Market Page 7 | ©2008 Diamond Management & Technology Consultants, Inc.

Insight: Which agents to focus on for growth? Chart title (16 Verdana, Lime green) Agent Revenue Performance - Market Growth Potential $150K Market Growth Potential (MGP)3 yr $100K Identify Train best Agencies practices Good Agencies in non-Growth De-prioritize Markets $80K $20K Agent Revenue Potential (ARP) $x Avg. Premium/agent Page 8 | ©2008 Diamond Management & Technology Consultants, Inc.

Website Adoption Concept Attract Diabetes Seed Dreams Universal Content • Videos Incentivize • Blogs • Health Points • Articles Dreams • FAQ’s Define Path to • Best Practices The Dream • Content Social N/W User Generated Content Social Networking Share Dreams Engage • Forums • Progress • Expert Advice Preventative • Forum • Profile Healthcare • Links • Friends Educate Intermediate • Blogs • Rewards Share Page 10 | ©2008 Diamond Management & Technology Consultants, Inc.

Understanding the Market: Social Inclusion • Over 60% of registered users were active in social media Source of No. of Respondents Information Interactive 52 patients mentioned online Media Interactive forum and blogs as important media sources of information. Traditional Media 201 patients mentioned Traditional Traditional mass media as source Media Doctors & of info for Diabetes Nurses 146 patients still trust doctors Doctors & and nurses more and would go to Nurses Friends & them for any information Family 85 patients would reach their Friends & family members and friends for Family diabetes related info Page 11 | ©2008 Diamond Management & Technology Consultants, Inc.

Model: Model includes delays, interdependencies and feedback loops Macro view of model and the four major 1 Population & Internet sections Adoption • Inflow of diabetes patients 2 Diabetes patient 4 lifecycle 1 • Lifecycle from undiagnosed, through diagnosis ending in mortality 2 3 Four management activities Diet • 3 Exercise • Self Management • Clinic Management • 4 4 Six major complications Visual complications • Cardiovascular problems • Amputations • Neuropathy (Nerve) • NOTE: Variables from Gauteng, South Africa and American Nephropathy (Kidneys) • diabetic sources combined with prototype-specific findings Page 13 | ©2008 Diamond Management & Technology Consultants, Inc.

Analyze: Technology Adoption • Patients adopt the Internet as a means of education and information gathering High usage of all three technologies Moderate users of all three technologies Intervention users who didn’t use Glucometer but used internet and mobile device Control group who used Glucometer and mobile device effectively Patients’ response to Internet, Mobile, Medical Device Page 15 | ©2008 Diamond Management & Technology Consultants, Inc.

Overview of Costs and Potential Benefits • This prototype illustrates the economic benefit per capita from just one service. The ~$90/citizen cost of adoption could be spread over multiple services to maximize the benefit. ~$230/citizen of ~$90/citizen to realized benefit deliver and have services executed - = ~$140/citizen for just one critical service* *It is highly likely that one citizen will realize benefit from multiple services Page 17 | ©2008 Diamond Management & Technology Consultants, Inc.

Five Habits of Thoroughly Mediocre Organizations • Low Situational Awareness • Poor Skills • Wrong Values • No Authority to Improve • Lack of Systemic Thinking Page 18 | ©2008 Diamond Management & Technology Consultants, Inc.

The Key Ingredients… • The Role: Leader as learner… • The Story: We have so much to discover… • The Skills: A scientific mindset and willingness to learn… • The Tone: Humble hearts, with great aspirations… • The Work: Leading by example, teaching everyday… Page 20 | ©2008 Diamond Management & Technology Consultants, Inc.

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John Sviokla - Creating an Information Advantage

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