Simmethod, social media contribution to value, profit and sales

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What is the contribution of the various Social Networks such as Facebook, Twitter and LinkedIn to Business Sales, Profits, Overhead Management and Value Creation?

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Simmethod, social media contribution to value, profit and sales

  1. 1. SIMMETHOD™ Performance Predictive Index, Competitive Intelligence Success Metrics Database and Risk/Opportunity Alerts Social Media Contribution to Business Value, Sales, Profits and Overhead Management WWW.SIMMETHOD.COM8/19/2012 1
  2. 2. SIMMETHOD™Strategy/Execution Performance Predictive Index, Competitive Intelligence Database and Alerts Technology, Social Media, HR, InsuranceThe businesses in the SIMMETHOD™ Best-In-Class group (Insurance ecosystem case study) share a• High score in the Strategy/Execution Performance Predictive Index and• a high degree of compliance with the SIMMETHOD™ 7 Laws of Best Practices, Growth and Value Creation.8/19/2012 WWW.SIMMETHOD.COM 2
  3. 3. SIMMETHOD™ Performance Predictive Algorithm combines Business, Social 7 Laws of Media, Stockholders, Best Management Metrics Practices Competitive Intelligence Predictive Database SIMMETHOD™ Strategy/Execution PerformancePredictive Index & Competitive Intelligence Database8/19/2012 WWW.SIMMETHOD.COM 3
  4. 4. SIMMETHOD™ 2012 Performance Predictive Index, Competitive Intelligence Database and AlertsThe Performance Predictive Indices:• Rate management ability to strategize and execute against its peers,• Show the strengths and weaknesses of each management-team in relation to its peers, current and potential future competitors and• Are a predictive indicator of future performance, threats and opportunities from within and outside your industry.8/19/2012 WWW.SIMMETHOD.COM 4
  5. 5. SIMMETHOD™ 2012Strategy/Execution Performance Predictive Index, Competitive Intelligence Database and AlertsIn 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 companies and value chains across every business sector and• Provide early warning alerts of future threats and opportunities as depicted in the following slide8/19/2012 WWW.SIMMETHOD.COM 5
  6. 6. SIMMETHOD™ Strategy/Execution PerformancePredictive Indices, Competitive Intelligence D/B & Alerts In a constantly fluctuating MARKET SIMMETHOD industry-agnostic indices measure the relationships (competitive advantage) between businesses and value chains across every business sector unlike static business ratios that do not capture and measure the dynamic relationships between businesses and value chains. YOUR INDUSTRY SIMMETHOD Index SIMMETHOD score (competitors Index score within industry) (suppliers) THE SCORES OF YOUR PREDICTIVE INDICES HR CFO REFLECT YOUR IT COO STRENGTHS, CMO Sales WEAKNESSES, RISKS & OPPORTUNITIES IN RELATION TO CURRENT & FUTURE COMPETITORS SIMMETHOD Index score (customers) SIMMETHOD Index SIMMETHOD Index score (future score (future competitors) customers)8/19/2012 WWW.SIMMETHOD.COM 6
  7. 7. SIMMETHOD™ 7 Laws of Best Practices, Growth and Value Creation - DefinitionThe SIMMETHOD™ 7 Laws of Best Practices, Growth and Value Creation provide a framework for the• Performance predictive algorithm,• Calculation of the Global Strategy/Execution Performance Predictive Index and• Identification and selection of the Best-In-Class businesses, leaders and management teams.8/19/2012 WWW.SIMMETHOD.COM 7
  8. 8. SIMMETHOD™ 7 Laws of Best Practices, Growth and Value Creation Integration Minimum /alignment Benchmarking company inside/outside /business your industry model SIMMETHOD™ 7 Laws Growth & Averages & positive value trends creation Predictive Resource performance contribution & risk to objectives8/19/2012 WWW.SIMMETHOD.COM 8
  9. 9. Performance Predictive Indices, Competitive Intelligence Database and AlertsSIMMETHOD™ is a relative scalethat measures business risk andperformance and rates yourmanagement ability to strategizeand execute against your peers, your valuechain and your current and future competitorsand their value chains. WWW.SIMMETHOD.COM8/19/2012 9
  10. 10. Connecting Value Chains via SIMMETHOD™ Management Controllable, Business Model and Predictive Indices and Alerts Technology, Social Media, HR, Insurance Randstad Suncorp Metway Fidelity National Info Symantec Fondiaria SIMMETHOD Minimum Industrial Alliance Company Business Forrester Model Hartford Financials Gartner Unum Group Alliance Data Systems SIMMETHOD Mapfre Strategy/Execution Wellpoint Performance Predictive Aetna Index Humana World fuel serv American Equity SIMMETHOD W Berkley Management citrix Controllable Index Paychex Oracle AFLAC ACE Torchmark Apple -60 -40 -20 0 20 40 60 808/19/2012 WWW.SIMMETHOD.COM 10
  11. 11. Connecting Value Chains via SIMMETHOD™ ManagementControllable, Business Model and Predictive Indices and Alerts Technology, Social Media, HR, Insurance80604020 0 ebay Unipol MBIA Loews SAP Yahoo Accenture Cognizant Scor CA METLIFE Tui Cigna Forrester Vmware XL Group Groupon citrix CGI Group AXA Ageas Aegon AFLAC AIA Group wipro World fuel serv Wellpoint Unum Group ADP Randstad Progressive Symantec Apple Google Capita Group Priceline Molina Healthcare American Financial CNO Financial Group Allstate Liberty interactive Travelers-20-40-60 SIMMETHOD Management Controllable Index SIMMETHOD Strategy/Execution Performance Predictive Index SIMMETHOD Minimum Company Business Model8/19/2012 WWW.SIMMETHOD.COM 11
  12. 12. Strategy/Execution Performance Predictive Indices, Competitive Intelligence Database and Alerts SIMMETHOD™ is a “Business League Table” constantly searching for the top teams in each industry and value chains in order to find their Best-In-Class strategy, execution, Business models, HR practices, Social Media ROI, metrics and processes. WWW.SIMMETHOD.COM 8/19/2012 12
  13. 13. SIMMETHOD™ Social Media Contribution to Business Value Creation• As Business Value gravitates towards Intangibles and the Value Chain, what is the role of Social Media and the different Social Networks? and• What is the contribution of the various Social Networks such as Facebook, Twitter and LinkedIn to Business Sales, Profits, Overhead Management and Value Creation?8/19/2012 WWW.SIMMETHOD.COM 13
  14. 14. SIMMETHOD™ Social Media Contribution to Business Value Creation• SIMMETHOD™ research has found no link between its Social Media Index or the number of Social Network Followers and Business Performance.• In other words, although research is still continuing across a wide range of Business Sectors, currently, the number of Social Network Followers or the SIMMETHOD™ Social Media Composite Index are not predictors of future performance.8/19/2012 WWW.SIMMETHOD.COM 14
  15. 15. SIMMETHOD™ Social Media Contribution to Business Value Creation• However, as shown in the Case Study, Best-In-Class Businesses are able to leverage their resources in order to extract more Sales, Profits and Value from their Social Networks than their Low Performance Peers.• Consequently, as Businesses improve their performance, the value of their Social Network Followers improve and they are able to manage the new found resource in a more profitable way.8/19/2012 WWW.SIMMETHOD.COM 15
  16. 16. SIMMETHOD™ Social Media Contribution to Business Value CreationOn average, based on the SIMMETHOD™ Case Study and as shown on the following graphs:• Facebook Followers contribute twice as much to overheads than LinkedIn Followers• Facebook Followers contribute 3 times as much to Business Value than LinkedIn Followers• Facebook Followers contribute twice as much to Business Value than Twitter Followers• Twitter Followers contribute twice as much to Business Value than LinkedIn Followers8/19/2012 WWW.SIMMETHOD.COM 16
  17. 17. SIMMETHOD™ Social Media Contribution to Business Value Creation by NetworkLinkedIn Average value of a Social Media Follower ($M) Twitter Value of a Low Performance Social Media Folower ($M) Value of a Best-In-Class Social Media Follower ($M)Facebook 0 5 10 15 20 25 30 35 40 45 508/19/2012 WWW.SIMMETHOD.COM 17
  18. 18. SIMMETHOD™ Social Media Contribution to B-I-C Business Value Creation Value of a Best-In-Class Social Media Follower ($M) Facebook Twitter LinkedIn8/19/2012 WWW.SIMMETHOD.COM 18
  19. 19. SIMMETHOD™ Social Media Contribution to Business Profits by Network LinkedIn Average Profitability of a Social Media Follower ($M) Twitter Profitability of a Low Performance Social Media Follower ($M) Profitability of a Best-In-Facebook Class Social Media Follower ($M) 0 5 10 158/19/2012 WWW.SIMMETHOD.COM 19
  20. 20. SIMMETHOD™ Social Media Contribution to B-I-C Business Profits Profitability of a Best-In-Class Social Media Follower ($M) Facebook Twitter LinkedIn8/19/2012 WWW.SIMMETHOD.COM 20
  21. 21. SIMMETHOD™ Social Media Contribution to Business Sales by Network Average Contribution to LinkedIn Sales by a Social Media Follower ($M) Low Performance Social Twitter Media Follower Contribution to Sales ($M) Best-In-Class Social mediaFacebook Follower Contribution to Sales ($M) 0 20 40 60 808/19/2012 WWW.SIMMETHOD.COM 21
  22. 22. SIMMETHOD™ Social Media Contribution to B-I-C Business Sales Best-In-Class Social media Follower Contribution to Sales ($M) Facebook Twitter LinkedIn8/19/2012 WWW.SIMMETHOD.COM 22
  23. 23. SIMMETHOD™ Social Media Contribution to Overhead Management by Network LinkedIn Average Overhead per Social Media Follower ($M) Twitter Overhead per Low Performance Social Media Follower ($M) Overheads per Best-In- Class Social MediaFacebook Follower ($M) 0 0.5 1 1.5 2 2.58/19/2012 WWW.SIMMETHOD.COM 23
  24. 24. SIMMETHOD™ Social Media Contribution to B-I-C Overhead Management Overheads per Best-In-Class Social Media Follower ($M) Facebook Twitter LinkedIn8/19/2012 WWW.SIMMETHOD.COM 24
  25. 25. SIMMETHOD™ Average Social Media Contribution to Business Value, Sales, Profit and Overhead Management by Network Average Overhead per Social Media Follower ($M) Average Contribution to Sales per Social media Follower ($M) LinkedIn TwitterAverage Profitability per Social Media Facebook Follower ($M) Average Value per Social Media Follower ($M) 0 5 10 15 20 25 30 35 408/19/2012 WWW.SIMMETHOD.COM 25
  26. 26. SIMMETHOD™ Average Social Media Contribution to Business Value Creation by Network Average Value per Social Media Follower ($M) Facebook Twitter LinkedIn8/19/2012 WWW.SIMMETHOD.COM 26
  27. 27. SIMMETHOD™ Social Media Contribution to Business Value Creation Facebook, Twitter and LinkedIn combined Overheads/Social Media Follower Sales/Social Media Follower Average ($M) Low Performance ($M)Profit/Social Media follower Best-In-Class ($M)Value/Social Media Follower 0 2 4 6 8 10 12 148/19/2012 WWW.SIMMETHOD.COM 27
  28. 28. Jorge Oscar Tabacman jtabacman@gmail.com www.simmethod.blogspot.com The power of the SIMMETHOD™ performance predictive algorithms, indices, competitive intelligence success metrics database and leading indicators lie in their ability to: • Provide in simple terms a window into a company business model and management effectiveness and • Predict future trends, risk, performance and competitive advantage within an extended value chain. WWW.SIMMETHOD.COM8/19/2012 28

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