Simmethod, the 7 insights of the 2012 best in-class

SIMMETHOD™
Strategy/Execution Performance Predictive Index,
Competitive Intelligence Analytics Database
and Alerts

Predicts the performance of your
business and alerts you of new threats
and opportunities in relation to current
and future competitors
WWW.SIMMETHOD.COM

WWW.SIMMETHOD.COM
7/1/2012 1

SIMMETHOD™ Strategy/Execution Performance
Predictive Indices, Competitive Intelligence D/B & Alerts
Why Do Businesses Fail or Fail To Perform?

Mervyns
Circuit City Wachovia

Washington
Borders
Mutual

Internal or
Linen n’
Blockbuster external Things
factors?

7/1/2012 WWW.SIMMETHOD.COM 2


Is business failure driven by internal
management decisions or external market
conditions beyond management control?
• What separates future winners from losers?

Why do some businesses fail while others
succeed in the most adverse circumstances?

• What are their secrets?

SIMMETHOD™ Premise

SIMMETHOD™
premise is simple:

Companies fail or fail to
perform primarily due to
internal decision-making
rather than external
circumstances beyond
management control.

To find the secrets of the 2012 Best-In-Class, SIMMETHOD™
Performance Predictive Algorithms combined

Business, Social
Media, 7 Laws of
Stockholders, Best
Management Practices
Metrics

Competitive
Intelligence
Predictive Database

The 7 Insights
Lessons from the Best-In-Class in the SIMMETHOD™
Competitive Intelligence Predictive Analytics Database


Questions:
• What is the role of the industry’s Best-in-Class
performers in your strategy formulation?
• Is your goal setting based on the full picture?
Why is important to study Best-in-Class
businesses in each industry?
• How good do you have to be in order to
outperform your current and future
competitors?


• In order to outperform your competitors, it is
essential to understand their ability to strategize and
execute against you and their peers, their business
models, risk profiles, value-chain, success metrics
and their competitive advantage.
• Moreover, if your strategy, goal setting and risk
profiles are not taking into consideration external
perspectives (as well as internal drivers) your
business can become too inward-looking and mistake
any positive trend for real competitive advantage that
outsmarts your competitors.



• Today, in the Internet age, customers' expectations
and choices are driven by their experiences with a
wide range of suppliers and in particular the best
suppliers across many industries and geographical
location.
• Customers’ expectations cover from business models
to level of services, business complexity, pricing,
branding, product and services, inefficiencies, etc.
Therefore, any business strategy must understand the
connection between Best-in-Class businesses and
their customers.


Predictive Indices, Competitive Intelligence D/B & alerts

• The SIMMETHOD™ algorithms, performance
predictive indices, competitive intelligence
analytical database and alerts capture the
performance of the 2012 Best-in-Class businesses
(summarized in the following 7 Insights) and
provide a basis for strategy formulation, alignment
of execution to strategy, competitive advantage and
risk minimization with very specific insights into the
areas of marketing ROI, employee and overhead
management, sales growth and profit optimization.


Lessons from the SIMMETHOD™ competitive
Intelligence Predictive Analytics Database
2) Holistic
3) Industries are 1) Risk/performance are
value chain
interlinked. Adapt B-I-C impacted by int/ext
metrics
processes from a range factors that must be
of industries addressed by
management

5) Value chain SIMMETHOD™
leading 4) From
indicators
7 Insights internally focus
to value chain
analytics

7) Basket of industry 6) Intangible assets
agnostic predictive as new drivers of
indicators to lift value value creation and
chain performance growth


Insight One

• Business performance and risk are
impacted by both internal and external
factors and management must address
both of them in order to improve
performance and reduce risk.


Insight One
• Best-In-Class organizations measure the external
forces that have major risk implications for their
businesses and their industries. Senior Executives
receive early warning risk and performance alerts
linked to global industry trends and metrics as well as
internal business execution.
• 2012 Best-In-Class organizations, (following the new
sources of value creation) have moved from
internally-focused Risk, Business Intelligence and
Performance Analytics to Value-Chain Risk and
Performance Metrics and Business Intelligence.


SIMMETHOD™ Strategy/Execution Performance Predictive
Indices, Competitive Intelligence D/B & Alerts
Insight Two
Indices, Competitive Intelligence Database & Alerts
Regulations
Customer growth/
Productivity, profitability,
Business business marketing ROI,
Bigdata Multichannel
Profit model
strategy,
BPM, RFID
Hadoop, NoSQL,
ROI, costs, Objectives, IT ROI,
Analytics,
budget Strategy leading
BI, CRM
indicators

Stockholders Decision Business/IT
IT security,
Funds support Alignment
mobility

SIMMETHOD™ Performance
Predictive Indices score & link your
strategy, management decisions and
execution to the overall performance
of your business in relation to your
CEO/CFO current and future competitors CIO/CMO/CTO
reflecting your, strengths,
weaknesses, risks and opportunities


Insight Two
• To understand the internal and external
dynamic factors affecting the
performance of your business, you must
take a holistic approach rather than
concentrating on specific stand-alone
processes and metrics that are not
integrated to your value-chain strategy
and objectives.

Insight Two
• The lack of C-level overall business visibility
caused by the many islands of information
and the many versions of the truth has been
widely discussed and reported by research
organizations and business professionals.
• This issue is highlighted by a CEO’s dilemma:
“All my Business Units are reporting excellent
set of numbers however, the business as a
whole is going south”!


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)


Insight Three
• Today’s marketplace is interlinked and the
performance of one sector is influenced by
the performance of other industry sectors. To
understand the external factors impacting
the current and future performance of a
business, it is necessary to look beyond any
given industry and instead look at many
business sectors in order to reduce the risk
and better measure, manage, predict and
improve the performance of a business.

Insight Three
• The internet, smart phones, smart cards, new
payment systems and a new generation of savvy
interactive consumers have facilitated the creation of
new business models that have crossed traditional
industry boundaries and barriers.
• In assessing the effectiveness of a business model,
strategy or execution of a strategy special attention
must be given to Best Practices developed across a
range of global industries. In this way, strategies,
business processes or business models from one
industry can be studied and used to improve the
performance of other industries.


Insight Four
Indices, Competitive Intelligence Database & Alerts
Regulations
Productivity/
Marketing ROI, business model,
Bigdata, budgets, metrics,
Leading Business model, Multichannel
indicators procurement
Value chain strategy,
BPM, RFID
Hadoop, NoSQL,
ROI, costs, Objectives, IT ROI,
Analytics,
budget Strategy leading
BI, CRM
indicators

Stockholders Decision Business/IT
support, KPI’s IT security,
Funds Alignment
mobility

SIMMETHOD™ Performance
Predictive Indices score & link your
strategy, management decisions and
execution to the overall performance
of your business in relation to your
VENDOR current and future competitors CUSTOMER
VALUE reflecting your, strengths, VALUE CHAIN
CHAIN weaknesses, risks and opportunities


Insight Four

• Today's efficiency drives transcend business
boundaries and include and are shared
across supply chains and value chains of
suppliers, distributors and customers. In
fact to take advantage of e/m/f/g
commerce, value chain metrics, processes,
business models and systems must be
synchronized.


Insight Four
In the current market:
• Customers want to know that they are not
paying for their suppliers' inefficiencies.
• Customers will penalize suppliers who have
bloated cost structures, inefficient business
models and outdated systems and processes.
• Business partners need a common set of
business processes, metrics and predictive
performance indices to fully take advantage of
e-commerce, m-commerce and F-commerce
benefits.

Insight Five
• Business Intelligence, Predictive
Analytics and Risk Management search
for Predictive Leading Indicators: To
assess the current and future
performance of a business, one of the
best leading indicators is to understand
the performance of its major customers
and their industry sector.

Insight Five
• Although top customer performance is not an
automatic guarantee of supplier performance, unless
customers have implemented new strategies and/or
business models to cope with changes, such as the
global financial crisis, their troubles will often
translate to trouble for suppliers.
• Best-In-Class suppliers synchronize their metrics to
their customer metrics to ensure that customer
productivity improvements are matched by
corresponding supplier’s productivity improvements.


In a fluctuating market and unlike static business ratios SIMMETHOD™ industry-
agnostic indices measure the dynamic relationship (competitive advantage)
between businesses, value chains and their competitors
Insights Six and Seven
Your strategy/execution converted into Your competitors’ strategy/execution
SIMMETHOD™ performance predictive converted into SIMMETHOD™
and risk reduction indices performance predictive indices
SIMMETHOD™ Strategy/Execution Performance Predictive SIMMETHOD™ Strategy/Execution Performance Predictive
Indices, Competitive Intelligence Database & Alerts Indices, Competitive Intelligence Database & Alerts
Regulations Regulations
Customer growth/ Customer growth/
Productivity, profitability, Productivity, profitability,
Business business marketing ROI, Business business marketing ROI,
Bigdata Multichannel Bigdata Multichannel
Profit model Profit model
strategy, strategy,
BPM, RFID BPM, RFID
Hadoop, NoSQL, Hadoop, NoSQL,
ROI, costs, Objectives, IT ROI, ROI, costs, Objectives, IT ROI,
Analytics, Analytics,
budget Strategy leading budget Strategy leading
BI, CRM BI, CRM
indicators indicators

Stockholders Decision Business/IT Stockholders Decision Business/IT
IT security, IT security,
Funds support Alignment Funds support Alignment
mobility mobility

SIMMETHOD™ Performance SIMMETHOD™ Performance
Predictive Indices score & link your Predictive Indices score & link your
strategy, management decisions and strategy, management decisions and
execution to the overall performance execution to the overall performance
of your business in relation to your of your business in relation to your
CEO/CFO current and future competitors CIO/CMO/CTO CEO/CFO current and future competitors CIO/CMO/CTO
reflecting your, strengths, reflecting your, strengths,
weaknesses, risks and opportunities weaknesses, risks and opportunities


Insight Six
• Intangible assets (such as intellectual property,
R&D, human capital, brands, customer
relationships and databases) have grown in
importance as the lever for growth and value
creation and have delivered multiple income
streams and increased valuations.
• Best-In-Class have expanded the “Customer
Definition” in order to incorporate new business
models and sources of income that leverage the
value of their tangible and intangible assets.


Insight Six
• These significant changes have occurred because
of the creation of new business models using
lower cost structures or multiple income
streams coordinated across channels that did
not exist a couple of years ago.
• These business models are less reliant on
traditional physical assets and more reliant on
intangible assets such as social media, customer
interaction and engagement via social media or
new mobile channels.


Insight Six
• All this has made necessary the creation of new
strategies and business processes supported by new
value-chain risk and performance predictive indices
used as a yardstick to detect new sources of business
risk, assess business strategies, organizational
structures, business processes, human capital and/or
management decision-making effectiveness. Today,
more that ever the question to be asked is:
• "How long would it take for you and your senior
executives to realize that your business strategy is not
being followed or that you have been outsmarted by
new competitors?"


Insight Seven
• In order to influence employees behavior and
motivate them towards a Best Practices level
of performance, Best-In-Class performers
developed a basket of powerful value-chain
integrated leading risk and performance
indicators that provide new insights that are
not available to their competitors and benefit
their entire value-chain.


Insight Seven
For the Best-In-Class, the real value of the leading
performance indicators is not their actual figures, but
rather their ability to:
• Highlight a range of possibilities.
• Provide new insights into areas of risk and
improvement
• Leverage the value of their tangible and intangible
assets into new income generating business models
• Express metrics in a way that influences all
stakeholders in the value-chain towards a Best-In-
Class level of performance.

Insights One to Seven
Maximum risk, SIMMETHOD™ links your CRM, BI & Big Data
minimum Analytics to a Global Competitive Intelligence
visibility and Metrics Database of Strategy/Execution
control, unable Performance Predictive Indices and alerts
to predict risk
& performance
SIMMETHOD™
global market
SIMMETHOD™
view leading
value-chain
SIMMETHOD™ risk/
view, leading
industry view performance
Company performance
indicators &
view indicators & indicators &
alerts
alerts alerts database

Inward-looking CRM, BI,
Big Data Analytics and The Global Competitive Intelligence Database
leading indicators do of Strategy/Execution Performance Predictive
not protect against Indices and Alerts rates your team’s ability to
threats coming from execute against the Best-In-Class and alerts
different Business
you of new threats and opportunities
Sectors


Indices, Competitive Intelligence Database and Alerts

• SIMMETHOD™ is a relative scale that measures
business risk and performance and rates
management's ability to strategize and execute
against a constantly changing set of business,
industry and market performance metrics. It is
like a sport league table constantly searching for
the top teams in each industry in order to find
their Best-In-Class strategy, execution, business
models, HR practices, contribution of resources
to the bottom line, metrics and processes.


Jorge Oscar Tabacman
jtabacman@gmail.com
www.simmethod.com
The power of the SIMMETHOD™ performance predictive
algorithms, database, indices and leading indicators lie in their
ability to provide in simple terms a window into a company
business model and management effectiveness and their
ability to predict future trends, risk, performance and
competitive advantage within an extended value chain.


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