Simmethod growth and value creation sales index

SIMMETHOD
A New Way To Measure And Predict
Your Risk And Performance In The
Industry-Agnostic Digital Economy
In Spite Of Billions Of Dollars Spent On Business
Intelligence And Analytics, The Industrial Era
Metrics We Use To Measure Business Risk And
Performance Are Broken And Failing The C-suite
2/2/2016 1www.SIMMETHOD.blogspot.com

In Spite Of The Billions Of Dollars Spent
On Business Intelligence And Analytics
The industrial era metrics we use to measure
business risk and performance are broken and
failing the C-suite
Business processes and decision making is
slowing down driving up costs
The B2B selling cycle is increasing driven by a
larger pool of decision-makers, complex
procurement and compliance practices and
products disconnected from the value-add
metrics of the C-suite
2/2/2016 2
www.SIMMETHOD.blogspot.com

SIMMETHOD
The Way We Measure Business Risk And
Performance Is Broken And Failing The C-suite
•The
evidence
2/2/2016 3

SIMMETHOD
Is Business Decision-Making Slowing Down?
“The idea that time is speeding up is clearly
popular. It is also plausible. There is just one
problem. It is very hard to prove that it is actually
happening”. The Economist, December 2015
“Yet hard evidence of a great acceleration is hard
to come by. The Economist has considered a
variety of measures by which the speed of
business in America can be quantified. A few do
show some acceleration. But a lot do not”. The
Economist, December 2015
2/2/2016
4

SIMMETHOD
“A better explanation of the puzzle comes from looking
more closely at the effect of information flows on
businesses. Even though the processes about which you
know more are not inherently moving faster, seeing them
in far greater detail makes it feel as if time is speeding up”.
“This unsettling sensation is common to most chief
executives—a straw poll suggests that they receive 200-400
e-mails a day”. The Economist, December 2015.
2/2/2016
5

SIMMETHOD
Is Business Intelligence And Analytics Failing The C-Suite?
According to Protivity Risk & Business Consulting:
• Although Board members and senior executives
receive hundreds of pages of risk and
performance related information,
• They struggle to make sense of all these deluge
of data in a way that can be converted into
actionable information.
2/2/2016 www.SIMMETHOD.blogspot.com 6

SIMMETHOD
Is Business Intelligence And Analytics Failing The C-suite?
Why The
SIMMETHOD
Success Metrics
And Risk Alerts
PWC CEOs Survey:
56% of CEOs think
cross-sector
competition is on
the rise and 59%
see more threats
Boris Evelson, VP of BI,
Forrester Research: Only
40% of structured and 31%
of unstructured data
transformed into insights
IBM CFOs Insights: 53% of
CFOs think they are not
effective at measuring and
managing performance
Deloitte CFOs
Concerns &
Insights: Predicting
your competitors’
next steps &
execution missteps

SIMMETHOD
Most business activity is slowing down, not
accelerating:
• In benchmarking the speed of key processes
across the corporate sector,
• We find again and again that decision-making
at even the most basic level has slowed
materially over the past five to ten years”.
Tom Monahan, CEB Chairman on
Fortune Jan 28, 2016.
2/2/2016 8

SIMMETHOD
Is Business Intelligence And Analytics Failing The C-Suite?
As stated by Tom Monahan, “things got even slower
when companies meshed processes” resulting on:
• Poorly coordinated growth of risk management,
compliance, privacy and data protection
• “Nine-fold increase in the number of different
ERM functions over the last ten years”
• “Technology misuse where 60% of employees
must consult with at least 10 colleagues each day
just to get their jobs done”
(based on 23,000 responses)
2/2/2016 9

SIMMETHOD
Why The
SIMMETHOD
Success
Metrics And
Risk Alerts
CEB Study of 400
corporate recruiters:
Hiring of new
employees now take 63
days up from 42 days in
2010
CEB Study of 2000 Project
Managers at 60 global
organizations: Avg. time to
deliver an IT project increased
from 2010 to 2015 by over a
month to 10 months
CEB B2B Surveys: Time for B2B
sales have risen by 22% and
gaining consensus has risen from 1
to 2 to 5 buyers or more
CEB Study of 2000
Project Managers:
Every month of
delay in an IT
project costs
$43,000 and up

SIMMETHOD
Predictive Risk And Performance
• As shown by Gartner
Research, although BI and
analytics will continue at
the top of the CIO agenda
in 2016,
• Aligning it to the C-suite
and the way you measure
(your metrics) will
determine your results.
2/2/2016 11

SIMMETHOD
To address the above-mentioned
concerns SIMMETHOD has developed
new predictive C-level risk and
performance metrics and alerts
specially designed for the new
industry-agnostic digital economy such
as the:
• HR Index
• Assets Index
• Overheads Index
• Cash/debt Index
2/2/2016 12

SIMMETHOD
• Sales Index
• Profitable Sales Index
• Value Creation Sales Index
• Growth Index
• Business Model Index
• Management Controllable Resources
Index
• Risk Index
• Strategy & Execution Performance
Predictive index
2/2/2016 13

SIMMETHOD
The following examples show
the relationship between
your Growth, Value
Creation, Profitable Sales,
Risk and Strategy &
Execution Performance
Predictive Indices and the
SIMMETHOD Best in Class
2/2/2016 14

SIMMETHOD
2014-2015 Growth Index
0
2
4
6
8
10
12
SIMMETHOD 2014-2015 Growth Index Best-In-
Class
2/2/2016 15

SIMMETHOD
0
0.5
1
1.5
2
2.5
SIMMETHOD 2014-2015 2nd Quartile Growth Index
2/2/2016 16

SIMMETHOD
-4.5
-4
-3.5
-3
-2.5
-2
-1.5
-1
-0.5
0
SIMMETHOD 2014-2015 Growth Index 3rd Quartile
2/2/2016 17

SIMMETHOD
-12
-10
-8
-6
-4
-2
0
SIMMETHOD 2014-2015 Growth Index 4th Quartile
2/2/2016 18

SIMMETHOD
Competitive Intelligence
The following two slides show 3 types of
companies:
• Positive business Growth Index with negative
Value Creation Sales Index,
• Negative Growth Index with positive Value
Creation Sales Index and
• Negative Growth Index with negative Value
Creation Sales Index versus the Best In Class
2/2/2016 19

SIMMETHOD
-12
-10
-8
-6
-4
-2
0
2
4
6
8
SIMMETHOD
B-I-C
Salesforce Oracle SAP Microsoft IBM
2014-2015 Growth Index Versus The SIMMETHOD
Best In Class
2/2/2016 20

SIMMETHOD
-12
-10
-8
-6
-4
-2
0
2
4
6
8
2014-2015 Growth
Index Versus The
SIMMETHOD Best
In Class
Value Creation
Sales Index vs.
SIMMETHOD's
B-I-C
2/2/2016 21
Relationship between business
growth and value created by your
sales
Best In Class companies are able to grow
and create value at the same time

SIMMETHOD Risk Index
2/2/2016
22
-12
-10
-8
-6
-4
-2
0
2
4
6
8
10
Avg. B-I-C
SIMMETHOD
Risk Index
Oracle
SIMMETHOD
Risk Index
SAP
SIMMETHOD
Risk Index
Microsoft
SIMMETHOD
Risk Index
IBM
SIMMETHOD
Risk Index
Salesforce
SIMMETHOD
Risk Index
2014
2015
As a cloud vendor, what is the risk that you
are transferring to your value chain?
Oracle & Microsoft Risk
Index are at B-I-C levels
and SAP’s Risk Index has
improved to positive
territory

SIMMETHOD
0
2
4
6
8
10
12
2014-2015 Growth Index Versus The SIMMETHOD Best In Class
Only Facebook, Apple and Baidu
grew at B-I-C levels
2/2/2016 23

SIMMETHOD
-3
-2
-1
0
1
2
3
4
5
6
7
Value Creation Sales Index vs. SIMMETHOD's B-I-C
Apple, Tencent, Baidu, Alibaba and
Google’s sales created value at Best In
Class levels
2/2/2016 24

SIMMETHOD
-4
-2
0
2
4
6
8
10
12
2014-2015 Growth
Index Versus The
SIMMETHOD Best
In Class
Value Creation
Sales Index vs.
SIMMETHOD's
B-I-C
2/2/2016 25
B-I-C companies are able to grow
and create business value at the
same time

SIMMETHOD
-3
-2
-1
0
1
2
3
4
5
6
7
8
SIMMETHOD
B-I-C
American
Express
Mastercard Visa Cielo
2/2/2016 26

SIMMETHOD
-3
-2
-1
0
1
2
3
4
5
6
7
8
2014-2015 Growth
Index Versus The
SIMMETHOD Best
In Class
Value Creation
Sales Index vs.
SIMMETHOD's
B-I-C
2/2/2016 27

SIMMETHOD
-10
-8
-6
-4
-2
0
2
4
6
8
2/2/2016 28

SIMMETHOD
-10
-8
-6
-4
-2
0
2
4
6
8
2014-2015
Growth Index
Versus The
SIMMETHOD
Best In Class
Value Creation
Sales Index vs.
SIMMETHOD's
B-I-C
B-I-C companies are
able to grow their sales
and create business
value concurrently
2/2/2016 29

SIMMETHOD
-5
-4
-3
-2
-1
0
1
2
3
4
5
6
Saudi Telecom, China Mobile
and Vivendi sales created
business value at B-I-C level
2/2/2016 30

Correlation Between Your SIMMETHOD Risk And
Strategy & Execution Performance Predictive Index
2/2/2016
31
-80
-60
-40
-20
0
20
40
60
SIMMETHOD
Risk Index (The
higher the score
the less risk)
SIMMETHOD
Strategy &
Execution
Performance
Predictive Index
Risk and predictive performance
comparison versus your peers and the
SIMMETHOD Best In Class

SIMMETHOD
0.00
5.00
10.00
15.00
20.00
25.00
30.00
Cigna Anthem Aetna Aetna Humana WellCare
Health
Plans
B-I-C
Profitable
Sales
Index
SIMMETHOD Profitable Sales Index
2/2/2016 32
Although Cigna has the highest Profitable Sales
Index, it has a negative Value Creation Sales Index
pointing to a considerable degree of inefficiency in
its business processes and metrics

SIMMETHOD
-5
-4
-3
-2
-1
0
1
2
3
4
Aetna with a positive Profitable
Sales Index and Value Creation
Sales Index points to a more
efficient company with a lower
cost structure
2/2/2016 33

Correlation Between Your SIMMETHOD Risk And
Strategy & Execution Performance Predictive Index
2/2/2016
34
-40
-30
-20
-10
0
10
20
30
SIMMETHOD Risk
Index (The higher
the score the less
risk)
SIMMETHOD
Strategy &
Execution
Performance
Predictive Index
Risk and predictive performance
comparison versus your peers and
the SIMMETHOD Best in Class

SIMMETHOD
•SIMMETHOD
Crowd-Sourced
Analytics

What Are The SIMMETHOD Best In Class
And Risk Alert Tools?
• SIMMETHOD Best In Class
analytical profiles and risk alerts
tools provide you and your C-level
with a large number of levers to
reduce your risk and improve your
performance

SIMMETHOD’s Trends, Gaps To The Best In
Class And Risk Alerts
• When the Best-In-Class and your
SIMMETHOD C-Level risk and
performance metrics are moving in
opposite directions, your ability to
compete weakens in proportion to
your widening gap to the
Best-In-Class.

SIMMETHOD Strategy & Execution
Performance Predictive Tools
How to holistically
measure and predict
the outcome of your
strategy & execution
in the new digital
economy?

The SIMMETHOD Tools
A New Way To Predict Your Risk And Performance
SIMMETHOD
success
metrics &
risk alerts
Algorithms
7 Laws of
growth
Performance
predictive
Indices
Strategy &
execution
league table Best-In-Class
profiles
Gaps to the
Best-In-Class
C-level risk
alerts

SIMMETHOD Strategy and Execution
Performance Predictive Tools And Risk Alerts
Unlike data, metrics and analytics that:
• Lack market context and are silo-based,
• Are non-predictive and industry specific,
• Provide a partial view of your enterprise
• Are disconnected from the KPIS of your
customers and your C-suite
• Lack risk alerts to fend off competitors
from inside and outside your industries

SIMMETHOD Strategy And Execution Performance Predictive
Tools And Risk Alerts
SIMMETHOD strategy & execution performance
predictive tools are a holistic industry-agnostic
representation of your strategy & execution to:
Measure and predict your strategy and execution versus
peers and the Best In Class,
Synchronize your products and services to the KPIS of
your customers and your C-suite
Receive C-level risk alerts linked to a competitive
intelligence database in order to fend off current and
potential future competitors.

The SIMMETHOD Algorithms And The 7
Laws Of Growth And Value Creation
SIMMETHOD
7 Laws
Integration
/alignment Crowd analytics
inside/outside
your industry
Growth &
value
creation
Resource
contribution
to objectives
C-level
Predictive
performance &
risk
Averages &
positive
trends
Minimum
company
/business
model

The SIMMETHOD Algorithms And The
7 Laws Of Growth And Value Creation
• Non-compliance with SIMMETHOD’s 7
Laws Of Growth And Value Creation
shows your areas of vulnerability and
risk and when applied to your
customers, it shows your opportunity to
enhance their business
value because:

The SIMMETHOD Algorithms And The
7 Laws Of Growth And Value Creation
• “The real measure of your
products and services is the
value they add to your
customers”. SIMMETHOD

SIMMETHOD
Crowd-Sourced Competitive Intelligence
SIMMETHOD’s Strategy
& Execution
Performance Predictive
Indices and Risk Profiles
are not deterministic.
Businesses that act
on their
SIMMETHOD
leading indicators
and risk alerts will
improve their 2016
performance.

SIMMETHOD’s Disclaimer
• The purpose of the SIMMETHOD Strategy &
Execution Performance Predictive Index and
risk and opportunities alerts is not to make a
business right or wrong but rather contribute
towards the understanding of management
actions in comparison to industry’s peers and
the SIMMETHOD Best In Class.

• SIMMETHOD’s Strategy & Execution
Performance Predictive Index and risk and
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.

• 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.

• This Presentation is for informational
purpose only and SIMMETHOD shall not be
liable for the contents of the Presentation or
for any damage incurred or alleged to be
incurred to any of the businesses included in
the Presentation as a result of its content.

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.

Simmethod growth and value creation sales index

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