Simmethod From Software As A Service To Outcomes As A Service, Twitter and Yahoo 2017 And Beyond

SIMMETHOD
From Software As A service To
Outcomes As A Service
Towards A Single Index To Measure And
Predict The Outcomes Of Your Strategy
And Execution
Twitter And Yahoo 2017 And Beyond
8/9/2016 1
www.simmethod.blogspot.com

The Way We Measure Corporate Risk
And Performance is Broken
• What happens when enterprises
use metrics, leading indicators,
analytics and risk alerts that are
industry inward-looking rather
than industry-agnostic market
focused?
12/7/2016 2WWW.SIMMETHOD.BLOGSPOT.COM

SIMMETHOD Success Metrics And Risk Alerts
The Way We Measure Corporate Risk And
Performance Is Broken
Why do
Businesses fail
or fail to
perform?
Blockbuster
Borders
Circuit City
Mervyns
Wachovia
Washington
Mutual
Linen n’
Things
8/9/2016 3www.simmethod.blogspot.com

SIMMETHOD
Is Business Forecasting And Predictive Analytics
Failing Your C-Suite?
• “In an era of constant
macroeconomic and geopolitical
upheaval, creating a forecast
leveraging just the company’s
internal data is like predicting the
temperature outside one’s house
based on how warm it is inside”,
Rich Wagner, CEO Magazine.
8/9/2016
4

SIMMETHOD
Why The Experts Can Not Agree?
• The way we measure
and predict corporate
risk and performance is
disconnected from the
new levers of value
creation.
12/7/2016 www.SIMMETHOD.blogspot.com 5

SIMMETHOD
What Sank The Titanic?
And… Some Of Our Great Companies
• The industrial-era metrics
we use to measure risk and
performance can not
detect risk and identify
opportunities in the new
industry-agnostic digital
economy
8/9/2016 6

SIMMETHOD
Problem Definition
The CEO Lament:
• My analytics and
business
intelligence point
North but my
business points
South

Why Do Businesses Succeed Or Fail?
SIMMETHOD Premise
SIMMETHOD
premise is simple:
Businesses succeed or fail
primarily due to internal
decision-making rather than
external circumstances
beyond management control.

SIMMETHOD
Failing Your C-Suite?
• Is this the traditional “risk-
view” of your C-Suite and
Board of Directors?
• Risk hidden from internal
and historical forecasting
and predictive analytics
data, based on accounting
systems, outdated metrics
and existing products
8/9/2016
9

SIMMETHOD
Failing The C-Suite?
• Is this the traditional
“opportunity-view” of your C-
Suite and the Board of
Directors?
• Opportunities hidden from
internal and historical
forecasting and predictive
analytics data, based on
accounting systems, outdated
metrics and existing products
8/9/2016
10

SIMMETHOD
Unique Value Proposition
SIMMETHOD
UNIQUE VALUE
PROPOSITIONS
Missing link between
predictive analytics,
business intelligence
and the C-suite
Missing link
between analytics,
business intelligence
and performance
Industrial era metrics
and KPIS disconnected
from the new levers of
value creation
Silo-Metrics unable to
holistically measure
and predict strategy
and execution
Lack of C-level early
warning risk alerts
linked to a crowd-
sourced success
metrics database

SIMMETHOD Unique Value Proposition
Early Warning Detection Of Risks And Opportunities
0
1
2
3
4
5
6
7
8
Period 1 Period 2 Period 3 Period 4
You
New disrupting
business
Market Best In
Class
8/9/2016
12
SIMMETHOD leverages
the forecasting wisdom
and predictive analytics
of the market Best-In-
Class and identifies
where most value is
being created
SIMMETHOD risk alerts (hidden
gap to the B-I-C and new
disrupting competitors)

SIMMETHOD
Creation and update of the risk and performance
database with a curated group of companies
Apply 7 Laws of
growth & value
creation
Apply
SIMMETHOD
algorithms
Calculate
performance
predictive
indices
Calculate Best
In Class profiles
Apply
correlations to
industry agnostic
indices
Financial
data
Operational
data
HR data
Crowd sourced
business data
Social media
presentations
Updated historical risk &
performance database
Industry and
business risk alerts

SIMMETHOD
Creation and update of the risk and performance
database with a curated group of companies
Why SIMMETHOD uses a curated
global industry agnostic database
and crowd-sourced data to build
its predictive index?
• “Data rarely come prepackaged in
a form that is useful for making
predictions about the outcomes
you care about”. Prof. Vasant Dhar,
Stern School of Business
8/9/2016
14

SIMMETHOD
Benchmarking Your Risk And Performance And
Setting Up Your Risk Alerts Against The Best In Class
Apply 7 Laws of
growth & value
creation
Apply
SIMMETHOD
algorithms
Calculate
your
predictive
indices
Calculate your
gap to the Best
In Class
Apply predictive
correlations to your
performance indices
Your financial
data
Your
operational
data
Your HR
data
Set up your risk alerts
targets against the
Best In Class database
Visualization
interface
Updated historical risk &
performance database
Risk alerts: gap to BIC &
peers, predictive trends
Calculate
your risk
alerts

The 4 Phases Of The SIMMETHOD
Value Creation Process
• Your gap to
the B-I-C &
risk profiles
• Your C-level risk
& opportunity
alerts
• Your index
determines
your position
in the B-I-C
league table
• Crowd sourced
holistic,
context,
industry
agnostic
metrics
7 Laws
convert
your data
into index
7 Laws
calculate
league
table
7 Laws
calculate
B-I-C & risk
profiles
7 Laws C-
level risk
alerts
12/7/2016 16

SIMMETHOD’s C-Level Trends 2015-2016
Twitter, Yahoo and the Best-In-Class
• When the Best-In-Class and your
SIMMETHOD C-Level indices are
moving in opposite directions, your
ability to compete weakens in
proportion to your widening
gap to the Best-In-Class.
8/9/2016 www.simmethod.blogspot.com 17

Twitter and the Best-In-Class
8/9/2016
18
-15
-10
-5
0
5
10
15
20
Twitter 2015
Twitter 2016
Twitter has many positive trends: the Sales
Index, the Management Effectiveness Index
and the Risk Index. The Business Model
Index continues to be a source of trouble

SIMMETHOD
8/9/2016
19
0
5
10
15
20
25
30
35
2015 2016
Average B-I-C
SIMMETHOD Strategy/
Execution Performance
Predictive Index
Twitter SIMMETHOD
Strategy/ Execution
Performance Predictive
index
Improved Strategy & Execution
Performance Predictive Index vs. the Best
In Class as predictor of future performance

SIMMETHOD
8/9/2016
20
0
2
4
6
8
10
12
14
16
2015 2016
Avg. B-I-C SIMMETHOD
Management
Controllable Resources
Index
Twitter SIMMETHOD
Management
Controllable Resources
Index
Improved Management Effectiveness
Index correlates to future improvements
in the Value Creation Index

SIMMETHOD
8/9/2016
21
0
2
4
6
8
10
12
14
16
18
2015 2016
Avg. B-I-C
SIMMETHOD Value
Creation Index
Twitter SIMMETHOD
Value Creation Index
Although the Value Creation Index is on a
negative trend, it is positive and the
strong Management Effectiveness Index
predicts further improvements

SIMMETHOD
8/9/2016
22
0
2
4
6
8
10
12
2015 2016
Avg. B-I-C
SIMMETHOD
Cash/Debt Index
Twitter
SIMMETHOD Cash/
Debt Index
Although the Cash/Debt
Index has decreased, it is
still at Best In Class levels

SIMMETHOD’s
8/9/2016
23
-4
-3
-2
-1
0
1
2
3
2015 2016
Avg. B-I-C
SIMMETHOD
Sales Index
Twitter
SIMMETHOD
Sales Index
Twitter’s Sales Index has
improved to Best in Class
levels showing the many
hidden opportunities
available to the business

SIMMETHOD
8/9/2016
24
-4
-3
-2
-1
0
1
2
3
4
5
6
7
2015 2016
Avg. B-I-C
SIMMETHOD
Risk Index
Twitter
SIMMETHOD
Risk Index
Twitter has improved its Risk Index
to positive levels as a sign of
business strength and added value
to its value chain

SIMMETHOD
8/9/2016
25
-10
-8
-6
-4
-2
0
2
4
2015 2016
Avg. B-I-C
Overheads Index
Twitter
SIMMETHOD
Overheads Index
The Overheads Index has
improved to positive levels
versus the Best In Class

SIMMETHOD
8/9/2016
26
0
0.5
1
1.5
2
2.5
3
3.5
2015 2016
Avg. B-I-C
SIMMETHOD
HR Index
Twitter
SIMMETHOD
HR Index
The sharp drop in the HR Index
shows one of the icebergs in the
Twitter sea (HR’s ability to add
value to the business is
diminishing)

Yahoo and the Best-In-Class
8/9/2016
27
-10
-5
0
5
10
15
20
25
30
35
40
45
Yahoo
2015
Yahoo
2016
Except the Sales, Assets and Cash/Debt Index,
Yahoo’s indices are on a negative trend
showing an increased level of business risk and
a sharp deterioration in the Business Model
Minimum Company Index

SIMMETHOD
8/9/2016
28
0
5
10
15
20
25
30
35
40
45
2015 2016
Average B-I-C
SIMMETHOD Strategy/
Execution Performance
Predictive Index
Yahoo SIMMETHOD
Strategy/ Execution
Performance Predictive
index
Although still positive, Yahoo’s
Strategy & Execution
Performance Predictive Index is
on a negative trend

SIMMETHOD
8/9/2016
29
0
2
4
6
8
10
12
14
16
18
20
2015 2016
Avg. B-I-C
SIMMETHOD
Management
Controllable
Resources Index
Yahoo SIMMETHOD
Management
Controllable
Resources Index
Best In Class Management Effectiveness Index
correlates to future strong business value creation

SIMMETHOD
8/9/2016
30
0
5
10
15
20
25
2015 2016
Avg. B-I-C
SIMMETHOD
Value Creation
Index
Yahoo
SIMMETHOD
Value Creation
Index
Although the Value Creation Index
is trending negative, the Best In
Class Management Effectiveness
Index correlates to a positive
Business Value Creation Index

SIMMETHOD
8/9/2016
31
0
2
4
6
8
10
12
14
2015 2016
Avg. B-I-C
SIMMETHOD
Cash/Debt Index
Yahoo
SIMMETHOD
Cash/ Debt Index
SIMMETHOD Cash/Debt Index above Best In Class average

SIMMETHOD
8/9/2016
32
-1.5
-1
-0.5
0
0.5
1
1.5
2
2.5
2015 2016
Avg. B-I-C
SIMMETHOD
Sales Index
Yahoo
SIMMETHOD
Sales Index
The Sales Index has changed from
negative to positive strengthening
Yahoo’s competitive advantage

SIMMETHOD
8/9/2016
33
0
1
2
3
4
5
6
7
2015 2016
Avg. B-I-C
SIMMETHOD Risk
Index
Yahoo
SIMMETHOD Risk
Index
Although still positive, Yahoo’s level of
risk has increased versus the
SIMMETHOD Best In Class

SIMMETHOD
8/9/2016
34
0
0.5
1
1.5
2
2.5
2015 2016
Avg. B-I-C
Overheads
Index
Yahoo
SIMMETHOD
Overheads
Index
Yahoo’s Overheads Index trending negative is one more
iceberg on Yahoo’s sea

SIMMETHOD
8/9/2016
35
0
1
2
3
4
5
6
7
8
2015 2016
Avg. B-I-C
SIMMETHOD
HR Index
Yahoo
SIMMETHOD
HR Index
Although it is on a negative
trend, Yahoo’s HR Index is
above the SIMMETHOD Best
in Class average, showing a
strong contribution to
business value creation

SIMMETHOD
Why Your SIMMETHOD Risk Index Is So Important
To You, Your Prospects And Your Customers?
• As a cloud vendor, your
business risk is embedded
in your products and
services and is likely to be
transferred to your
customers and value chain
8/9/2016
36

SIMMETHOD
Linking Your Sales To Business Value Creation
• When the link between
your sales, your risk and
your value creation is
broken and your gap to
the SIMMETHOD Best In
Class is widening your
competitors will
determine your future
8/9/2016
37

SIMMETHOD
Competitive Intelligence Risk Alerts
8/9/2016
38
-10
-5
0
5
10
15
20
25
Yahoo 2015 Yahoo 2016 Twitter 2015 Twitter 2016
SIMMETHOD Profit
Index
SIMMETHOD Cash
Debt Index
SIMMETHOD Value
Creation Index
Some of the 2015-2016 trends

SIMMETHOD
Competitive Intelligence Risk Alerts
8/9/2016
39
-10
-5
0
5
10
15
20
25
30
35
40
45
Yahoo 2015 Yahoo 2016 Twitter 2015 Twitter 2016
SIMMETHOD Strategy
Execution
Performance
Predictive Index Index
SIMMETHOD Risk
Index
While Yahoo is on a negative risk and
performance trend, Twitter is in a
positive risk and performance trend

Early Warning Detection Of Risks And Opportunities
8/9/2016
40
SIMMETHOD leverages the forecasting wisdom
and predictive analytics of the market B-I-C and
identifies where the most value is being created
7 laws of
growth
& value
creation
Gap to
market
Best In
Class
Success &
Risk
Predictive
algorithms

The SIMMETHOD Algorithms Are Based On The
7 Laws Of Predictive 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

Twitter And The SIMMETHOD 7 Laws Of
Predictive Growth And Value Creation
Index Index Value And
At BIC levels?
Index Trend Index Trend Vs.
BIC
7 Laws
Compliance
Sales Pos, Yes Pos Pos Yes
HR Pos, No Neg Neg No
Management
Controllable
Resources
Pos, Yes Pos Pos Yes
Value Creation Pos, No Neg Neg No
Business Model Neg, No Pos Neg No
Strategy &
Execution
Performance
Predictive
Pos, Yes Neg Pos Yes
Risk Pos, No Pos Pos Yes
8/9/2016
42

Yahoo And The SIMMETHOD 7 Laws Of
Predictive Growth And Value Creation
Index Index Value And
At BIC Levels?
Index Trend Index Trend Vs.
BIC
7 Laws
Compliance
Sales Pos, No Pos Pos Yes
HR Pos, Yes Neg Pos Yes
Management
Controllable
Resources
Pos, Yes Neg Pos Yes
Value Creation Pos, No Neg Neg No
Business Model Neg, No Neg Neg No
Strategy &
Execution
Performance
Predictive
Pos, No Neg Neg No
Risk Pos, No Neg Neg No
8/9/2016
43

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:
12/7/2016
WWW.SIMMETHOD.BLOGSPOT.COM
44

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
12/7/2016
WWW.SIMMETHOD.BLOGSPOT.COM
45

Saving “The Titanic” One Company At The Time
8/9/2016
46
From company business intelligence
to predictive value chain business
intelligence:
• SIMMETHOD provides predictive
competitive intelligence linking
the value chain via a common set
of metrics enabling partners
(suppliers, customers) to align
their strategies and synchronize
their business models, processes
and execution.

8/9/2016
47
From internally-focused and historically
based risk and performance
forecasting to leveraging the
forecasting and analytics wisdom of
the market Best In Class:
• SIMMETHOD risk and performance
management global database is based
on competitive intelligence measuring
of external market forces that will
have major risk and opportunities
implications for you and your
business

8/9/2016
48
From internally-focused and historically
based risk and performance
forecasting and analytics to integrated
C-level competitive intelligence
predictive analytics:
• SIMMETHOD enables Directors and
Executives to receive early warning
performance and risk alerts linked to
global market trends, market Best In
Class and predictive correlations
based on the 7 Laws Of Growth And
Value Creation

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 Global 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.

SIMMETHOD
Makes Your Risk And Performance More Predictable
SIMMETHOD makes your risk and performance
more predictable by aligning your strategy
and execution to the:
• Market forces where the most value is being
created and
• Success metrics of your customers in order to
directly contribute to their results

SIMMETHOD
8/9/2016
54

Jorge Oscar Tabacman
jtabacman@gmail.com
Twitter ID: SIMMETHOD
SIMMETHOD
Success Metrics And Risk Alerts
The Way You Measure Determines
Your Results
8/9/2016 55www.simmethod.blogspot.com

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Simmethod From Software As A Service To Outcomes As A Service, Twitter and Yahoo 2017 And Beyond