Simmethod linked in case study 2013

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In a market where industry-barriers have collapsed and new competitors can come from any industry, how do you measure and predict your future risk and performance and fend-off current and future …

In a market where industry-barriers have collapsed and new competitors can come from any industry, how do you measure and predict your future risk and performance and fend-off current and future competitors?

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  • 1. SIMMETHOD™ Industry Reports and Risk Alerts Technology, HR and Social Media LinkedIn 2013 Case Study A new way to measure and predict Corporate Risk and Performance and fend-off current and future competitors 8/22/2013 1 WWW.SIMMETHOD.COM
  • 2. SIMMETHOD™ Risk and Opportunity Alerts 8/22/2013 WWW.SIMMETHOD.COM 2
  • 3. SIMMETHOD’s Case Studies 2013 Industry and Business Trends SIMMETHOD’s Case Studies LinkedIn 2013 Case Study (With updates throughout 2013) 8/22/2013 WWW.SIMMETHOD.COM 3
  • 4. SIMMETHOD™ Risk and Opportunity Alerts Case Studies Table of content: • Methodology • C-Level Industry and Business Trends • C-Level Business Competitive Intelligence • HR Contribution to Business Value 2012 to 2013 • Sales and Marketing Contribution to Business Value 2012 to 2013 8/22/2013 WWW.SIMMETHOD.COM 4
  • 5. SIMMETHOD™ Methodology 8/22/2013 5WWW.SIMMETHOD.COM
  • 6. The Way We Measure Corporate Performance Is Broken Why do Businesses fail? Blockbuster Borders Circuit City Mervyns Wachovia Washington Mutual Linen n’ Things 8/22/2013 6WWW.SIMMETHOD.COM
  • 7. The CEO’s Lament in the Business Analytics Market • We did not see it coming. All my Divisions’ Analytics pointed North while my Business as a whole (in comparison to new competitors and the Best-In- Class in multiple industries) went South. 8/22/2013 7WWW.SIMMETHOD.COM
  • 8. The Employee’s Lament in the Business Analytics Market • We did not see it coming. All our HR’s Analytics pointed North while our Business as a whole (in comparison to new competitors and the Best-In-Class across multiple industries) went South. 8/22/2013 WWW.SIMMETHOD.COM 8
  • 9. Disrupting the Way we Measure Corporate Risk and Performance There are three main problems: 1. The lack of a single industry-agnostic scale to measure and predict Corporate strategy/execution (competitive advantage) leads to erroneous and inconsistent C-Level decision-making 2. Silos-analytics lead to erroneous C-level decisions based on many versions of the truth 3. Lack of C-Level risk and performance visibility accentuated by inward-looking industry metrics 8/22/2013 9WWW.SIMMETHOD.COM
  • 10. Silos Analytics Lead to Many Versions of the Truth and Erroneous Decisions 8/22/2013 10WWW.SIMMETHOD.COM
  • 11. Towards a Single Index to Measure Competitive Advantage • Comparing the elephant legs or ears against peers’ legs or ears leads to incorrect conclusions (This is what traditional benchmarking does) • The strategy/execution or competitive advantage of a Business can only be assessed holistically and it is not the sum of its parts 8/22/2013 11WWW.SIMMETHOD.COM
  • 12. Towards a Single Index to Measure Competitive Advantage SIMMETHOD’s industry-agnostic algorithm holistically finds the Best-In-Class Businesses in each Business Sector and only then calculates a Best-In-Class and a low performance profile. These Best-In-Class and Low Performance profiles are used as a GPS to: • Alert you of your risk and opportunities within and outside your Business Sector, • Predict your performance against your peers and the Best-In-Class across multiple Business Sectors and • Fend-off current and future competitors coming from inside and outside your industry. 8/22/2013 WWW.SIMMETHOD.COM 12
  • 13. Towards a Holistic Index of Corporate & Value-Chain Performance and Risk • Currently, there is no single industry-agnostic scale to measure and predict Business or Value-Chain strategy/execution (competitive advantage). • Conventional Benchmarking measures silo by silo (ratio by ratio) and then adds up the sum of the parts but the problem is that (a star team is not the same as a team of stars) 8/22/2013 13WWW.SIMMETHOD.COM
  • 14. A Star Team (Strategy/Execution) Is Different Than a Team of Stars 8/22/2013 WWW.SIMMETHOD.COM 14 • Unlike conventional analytics that measures 11 players independently, SIMMETHOD’s algorithm finds the Best-In- Class teams first and only then prepares a predictive C-Level and functional profile of the Best-In-Class players
  • 15. 8/22/2013 WWW.SIMMETHOD.COM 15 Lack of Business and Value-Chain Leading Indicators and Risk Alerts Company view SIMMETHOD™ industry view indicators & alerts SIMMETHOD™ value-chain view, leading performance indicators & alerts SIMMETHOD™ global market view leading risk/ performance indicators & alerts database Inward- Looking Analytics Maximum Risk, Minimum Visibility Value-Chain and Market Leading Indicators and Risk Alerts Minimum Risk and Maximum Visibility
  • 16. The Leading Indicators and Risk Alerts of the Best-In-Class Why do you need Industry Agnostic Leading indicators and Risk/Opportunities Alerts? • In an interdependent Market (like the Planets in the solar system) your current and future risk and performance are impacted by an ecosystem of constantly changing competitors coming from inside and outside your Industry. 8/22/2013 WWW.SIMMETHOD.COM 16
  • 17. Your Gap to SIMMETHOD’s Best-In-Class Determines Your Risk and Performance Your current position against the B-I-C and competitors Gap to B-I-C in your industry Gap to Competitors in a range of industries Gap to B-I-C in a range of industries Your original targets against SIMMETHOD Database 8/22/2013 17WWW.SIMMETHOD.COM
  • 18. SIMMETHOD’s Disclaimer • The purpose of the SIMMETHOD Strategy/Execution Performance Predictive Index, Reports and Risk/Opportunities Alerts is not to make a Business right or wrong but rather contribute towards the understanding of management actions in comparison to industry peers and the SIMMETHOD Best-In-Class. 8/22/2013 WWW.SIMMETHOD.COM 18
  • 19. SIMMETHOD’s Disclaimer • SIMMETHOD’s League Table, Strategy/ Execution Performance Predictive indices, correlations, metrics and risk/opportunities alerts do not seek to be exact but rather serve as a conduit to ask better questions and seek better answers in the performance improvement, risk minimization and value creation journey. 8/22/2013 WWW.SIMMETHOD.COM 19
  • 20. SIMMETHOD’s Disclaimer • Sometimes, the value of a metric in itself does not provide the greatest of insights, but valuable actionable knowledge is gained from its ability to provide a trend or a common comparison yardstick with other Businesses across a range of industries. 8/22/2013 WWW.SIMMETHOD.COM 20
  • 21. SIMMETHOD’s Disclaimer • This report is for informational purpose only (with management rather than financial information) and SIMMETHOD shall not be liable for the contents of the report or risk/opportunities alerts or for any damage incurred or alleged to be incurred to any of the Businesses included in the Reports as a result of its content 8/22/2013 WWW.SIMMETHOD.COM 21
  • 22. SIMMETHOD League Table 2013 Business services, Technology, Software, Social Media, HR Best-In-Class Top 25% NHN, Visa, Apple, Mastercard, Checkpoint, Baidu, Infosys, Netease, Google, Yahoo, Cognizant, Priceline, Tata, Cielo, Intuit, AOL, Paychex, Wipro, VMware Best-In-Class Top 50% Aggreko, Accenture, Experian, Dassault, HCL, Moody’s, Oracle, Citrix, LinkedIn, Microsoft, Amadeus, SAP, H&R Block, DKSH, IBM, Salesforce, Amazon, Ebay, Teradata 8/22/2013 22 www.simmethod.com
  • 23. SIMMETHOD League Table 2013 Business services, Technology, Software, Social Media, HR Mid Range Score Adobe, Brambles, Thomas Cook, Verisk Analytics, EMC, Automatic Data, Facebook, Honeywell, Randstad, Compal, HP, Western Union, Quanta, Alliance, United Technology, Innolux Low Range Score CA, Fiserv, Sodexco, Tui, Netapp, Manpower, Dell, Computer Science, Fidelity National, Adecco, Symantec, Capgemini, Atos, Expedia, American Express 8/22/2013 23 www.simmethod.com
  • 24. SIMMETHOD™ Industry and Business Trends C-Level View • Are you mistaking any positive growth for real competitive advantage? • Your rate of improvement against the SIMMETHOD Best-In-Class determines your future risk and performance 8/22/2013 WWW.SIMMETHOD.COM 24
  • 25. SIMMETHOD’s Case Studies: Business Trends Across the Major C-Level Indices – 2012 to 2013 In the following Case Study, the gaps between the 2012 and the 2013 graphs show the areas of the Business where competitive advantage is being gained or lost in relation to peers and the SIMMETHOD Best-In-Class 8/22/2013 WWW.SIMMETHOD.COM 25
  • 26. SIMMETHOD’s C-Level Indices Business Trends 2012-2013 LinkedIn and the Best-In-Class 8/22/2013 WWW.SIMMETHOD.COM 26 -15 -10 -5 0 5 10 15 20 25 SIMMETHOD Management Controllable Resources index SIMMETHOD Value Creation Index SIMMETHOD Minimum Company Business Model index SIMMETHOD Strategy/ Execution Performance Predictive index LinkedIn 2012 LinkedIn 2013 Average 2013 Best-In-Class LinkedIn’s Strategy/Execution Performance Predictive Index improvement is driven by a strong improvement on the Management Controllable Resources Index (pointing to excellent Management decision-making)
  • 27. SIMMETHOD’s Business Trends Across the Major Indices – 2012 to 2013 8/22/2013 WWW.SIMMETHOD.COM 27 -15 -10 -5 0 5 10 15 LinkedIn 2012 LinkedIn 2013 Strong improvement in the Performance Predictive Index driven by the Sales, Assets and Cash/debt Indices
  • 28. SIMMETHOD’s Case Studies Competitive Intelligence C-Level View SIMMETHOD’s Case Studies: Business Competitive Intelligence 8/22/2013 WWW.SIMMETHOD.COM 28
  • 29. SIMMETHOD Competitive Intelligence In a market where industry-barriers have collapsed and new competitors can come from any industry, how do you measure and predict your future risk and performance and fend-off current and future competitors? 8/22/2013 WWW.SIMMETHOD.COM 29
  • 30. SIMMETHOD Competitive Intelligence SIMMETHOD’s Strategy/Execution Performance Predictive Indices: • Rate your management’s ability to strategize and execute against your peers and the Best- In-Class in multiple industries, • Show the strengths and weaknesses of your Business in relation to your peers, current and potential future competitors and • Are a predictive indication of future threats/opportunities from within and outside your industry. 8/22/2013 30WWW.SIMMETHOD.COM
  • 31. SIMMETHOD Competitive Intelligence • In a constantly fluctuating Market and unlike static ratios that do not capture the dynamic relationships between Businesses and Value Chains, SIMMETHOD™ industry-agnostic composite indices measure the interactive relationships (competitive advantage) between Businesses and Value Chains across every Business Sector and provide early warning alerts of future threats and opportunities. 8/22/2013 WWW.SIMMETHOD.COM 31
  • 32. SIMMETHOD Competitive Intelligence 2013 C-Level View 8/22/2013 WWW.SIMMETHOD.COM 32 -15 -10 -5 0 5 10 15 20 25 LinkedIn 2013 Oracle 2013 SAP 2013 IBM 2013 Average 2013 Best-In-Class SIMMETHOD Management Controllable Resources index SIMMETHOD Value Creation Index SIMMETHOD Minimum Company Business Model index SIMMETHOD Strategy/ Execution Performance Predictive index In the case of LinkedIn the Minimum Company Business Model Index shows that the Best-In-Class are able to generate more value with less resources. Improvements on all other indices contribute to an improved Performance Predictive Index
  • 33. SIMMETHOD Competitive Intelligence 2013 C-Level View 8/22/2013 WWW.SIMMETHOD.COM 33 -15 -10 -5 0 5 10 15 20 LinkedIn Oracle SAP IBM LinkedIn’s Overheads Index underperform the SIMMETHOD Best-In-Class. In other words B-I-C and peers extract more value from their overheads
  • 34. SIMMETHOD™ Industry and Business Trends SIMMETHOD Case Studies Industry and Business Trends HR Contribution to Business Value in Relation to your Peers and the Best-In-Class 8/22/2013 WWW.SIMMETHOD.COM 34
  • 35. SIMMETHOD™ Industry and Business Trends HR contribution to Business Value 2012 to 2013 8/22/2013 WWW.SIMMETHOD.COM 35 0 5 10 15 20 25 LinkedIn Strategy /Execution Performance Predictive index B-I-C Strategy /Execution Performance Predictive Index LinkedIn HR Index B-I-C HR Index 2012 2013 LinkedIn’s drop on the HR Index is in line with the B-I-C average. Its Strategy/Execution Performance Predictive Index has improved considerably in relation to peers and SIMMETHOD’s Best-In-Class thus increasing LinkedIn’s competitive advantage
  • 36. SIMMETHOD™ Industry and Business Trends SIMMETHOD Case Studies: Industry and Business Trends Sales and Marketing Contribution to Business Value in Relation to your Peers and the Best-In-Class 8/22/2013 WWW.SIMMETHOD.COM 36
  • 37. SIMMETHOD™ Industry and Business Trends Sales and Marketing contribution to Business Value 2012 to 2013 8/22/2013 WWW.SIMMETHOD.COM 37 -10 -5 0 5 10 15 20 25 LinkedIn Strategy /Execution Performance Predictive index B-I-C Strategy /Execution Performance Predictive Index LinkedIn Sales Index B-I-C Sales Index 2012 2013 Although still negative and below Best-In-Class, improvements on the Sales Index contributed to LinkedIn’s marked improvement on its Strategy/Execution Performance Predictive Index against the SIMMETHOD Best-in-Class
  • 38. SIMMETHOD Competitive Intelligence HR View 2013 LinkedIn Case Study: Competitive Intelligence (With Updates Throughout 2013) 8/22/2013 WWW.SIMMETHOD.COM 38
  • 39. SIMMETHOD Competitive Intelligence HR View 2013 8/22/2013 WWW.SIMMETHOD.COM 39 -20 -15 -10 -5 0 5 10 15 20 25 30 35 Facebook 2013 Yahoo 2013 LinkedIn 2013 2013 B-I-C SIMMETHOD HR Index SIMMETHOD Strategy /Execution Performance Predictive Index LinkedIn HR contribution to Business value is reflected on a 2013 improved Strategy/Execution Performance Predictive Index and competitive position in relation to the SIMMETHOD B-I-C
  • 40. SIMMETHOD Competitive Intelligence Sales and Marketing View 2013 LinkedIn Case Study Competitive Intelligence (With Updates Throughout 2013) 8/22/2013 WWW.SIMMETHOD.COM 40
  • 41. SIMMETHOD Competitive Intelligence Sales and Marketing View 8/22/2013 WWW.SIMMETHOD.COM 41 -20 -15 -10 -5 0 5 10 15 20 25 30 35 Facebook 2013 Yahoo 2013 LinkedIn 2013 2013 B-I-C SIMMETHOD Sales Index SIMMETHOD Strategy /Execution Performance Predictive Index Although Facebook and LinkedIn have a negative Sales Index, LinkedIn’s other indices contributed to an improved Strategy/Execution Performance Predictive Index
  • 42. SIMMETHOD™ Risk and Opportunities Alerts • The SIMMETHOD algorithm reviews 1000’s of Businesses and stockholders decisions across Business Sectors and builds Industry-Agnostic indices in order to identify, measure, correlate and predict your strengths, weaknesses, risks and opportunities against your current and potential future competitors from inside or outside your industry. 8/22/2013 42 WWW.SIMMETHOD.COM
  • 43. SIMMETHOD™ Risk and Opportunities Alerts The SIMMETHOD algorithm selects the Best-In-Class performers in Technology, Software, Social Media, HR and Business Services and produces Risk/Opportunities Alerts geared to • C-Level, • HR, • Finance, • Sales and Marketing Executives and • Investors showing trends, risk and Best-In-Class profiles and competitive intelligence in graphical and metrics form and risk/opportunities alerts throughout 2013. 8/22/2013 WWW.SIMMETHOD.COM 43
  • 44. SIMMETHOD™ Risk and Opportunities Alerts SIMMETHOD receives over 100,000 Business readers per year, has been Hot on LinkedIn, Twitter and Facebook 28 times and selected by Business Week as Top Source of Performance Management Information. 8/22/2013 WWW.SIMMETHOD.COM 44
  • 45. Jorge Oscar Tabacman jtabacman@gmail.com Twitter ID: SIMMETHOD SIMMETHOD™ A New Way to Measure and Predict the Risk and Performance of Your Business and Alert You of New Threats and Opportunities 8/22/2013 45WWW.SIMMETHOD.COM