Simmethod measuring and predicting sap, oracle and salesforce risk and performance

SIMMETHOD
A New Way To Measure And Predict
Your Risk And Performance In The
Digital Economy
SAP, Oracle And Salesforce
C-Level Success Metrics, Leading
Indicators And Risk Alerts
10/6/2015 1www.SIMMETHOD.blogspot.com

SIMMETHOD
Why The Experts Can Not Agree?
• “Morgan Stanley's stock market
guru explains why everything
you know is worthless”. Myles
Udland, Business insider on
September 28
10/6/2015
www.SIMMETHOD.blogspot.com
2

SIMMETHOD
• “In a note to clients on Monday,
Morgan Stanley chief equity
strategist Adam Parker wrote that
the world had changed and
investors looking to old methods for
valuing stocks would come up with
bad answers”.
10/6/2015
3

SIMMETHOD
• “In the US, corporate earnings growth
has been slowing down for months”.
• “It is amazing how forgiving the general
commentary has been on profits and
even the broad economy, Deutch Bank’s
David Bianco said in an email to
Business Insider”.
10/6/2015
4

SIMMETHOD
• “Many seem to celebrate the absence of a
recession. The labor market continues to
tighten…but other than some bright spots
like auto and housing, growth is extremely
weak with underlying drivers like
productivity and investing disturbingly poor
and S&P profits are not growing”. Sam Ro on
Business Insider on September 22
10/6/2015
5

SIMMETHOD
• “Not only are earnings in the US not growing,
but by many estimates, earnings are actually
contracting. Societe Generale's Andrew
Lapthorne has been sounding the alarm on
earnings for a while, and he reiterated this
call in a note to clients on Monday”. Sam Ro
on Business Insider on September 22
10/6/2015
6

SIMMETHOD
• Is SAP, Oracle and Salesforce
future risk and performance
predictable based on the
SIMMETHOD crowd sourced
competitive intelligence and
Strategy and Execution
Performance Predictive Index?
10/6/2015 7WWW.SIMMETHOD.BLOGSPOT.COM

SIMMETHOD B-I-C Profiles And Risk Alerts
Benchmark Your Business Vs. The B-I-C
To review a case study of Apple Inc., compare
your gap to the Best in Class and set up risk
alerts versus the following profiles:
• Profit profile
• Value profile
• Sales profile
• Human Capital profile
10/6/2015 www.SIMMETHOD.blogspot.com 8

SIMMETHOD Solution
The Way You Measure Determines Your Results
•SIMMETHOD
Methodology and
Algorithms

SIMMETHOD
• The Industrial-age way we
measure and predict
corporate risk and
performance is broken and
disconnected from market
context and the new levers
of value creation.

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

SIMMETHOD
Problem Definition
SIMMETHOD
C-suite
success
metrics &
risk alerts
Missing link
between analytics
and the C-suite
Missing link
between analytics
and performance
Industrial era
metrics
disconnected from
the new levers of
value creation
Silo-Metrics
unable to
holistically
measure strategy
and execution
Lack of c-suite
early warning risk
alerts and leading
indicators

SIMMETHOD
Is Business Intelligence And Analytics Failing The C-suite?
SIMMETHOD
C-suite
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

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
C-Level Leading Indicators
In spite of billions of dollars
spent on predictive analytics
and business intelligence
Why do companies succeed,
fail to perform or miss their
targets?
3/20/2015
www.simmethod.blogspot.com
15

SIMMETHOD
Strategy & Execution Performance Predictive
Index And C-Level Risk Alerts
Unlike product or process analytics or
industry specific ratios, the SIMMETHOD
algorithms:
Review business data and stockholders
valuation-decisions across business
sectors and
Build industry-agnostic and context-based
holistic indices in order to:
10/6/2015 16www.simmethod.blogspot.com

SIMMETHOD
Index And C-Level Risk Alerts
Identify, measure, correlate and
Predict your strengths and weaknesses versus
your current and future competitors from
inside or outside your industry and
Receive C-level risk alerts linked to a
competitive intelligence database
10/6/2015 17
www.simmethod.blogspot.com

The SIMMETHOD Algorithms
SIMMETHOD
Strategy &
Execution
Performance
Predictive Index
Stockholders
valuation and
management’s
rating
C-level strategy
& execution
Business model
Management’s
ability to
strategize &
execute against
competitors
Competitors
strategy &
execution

30/11/2014 Strategy & Execution Performance Predictive Index www.simmethod.blogspot.com
SIMMETHOD Strategy & Execution Performance Predictive
Index, Competitive Intelligence Database & Risk Alerts
SIMMETHOD: A new industry agnostic
way to measure and predict your risk and
performance in a “world without
industries”, the Internet of Things and
Connected Intelligent Products
BEST IN
CLASS
LOW PERFORMANCE &
MAXIMUM RISK
Global, predictive
strategy/execution
score & risk alerts
Risk &
Performance
aligned to
the B-I-C
Industry agnostic C-
level risk alerts and
leading indicators
Context
rather than
absolute
metrics &
targets
Crowd
sourced
competitive
intelligence
Unable to fend off
future competitors
from different
industries
Lack of holistic
strategy &
execution C-
level metrics
Lack of crowd
sourced self
correcting analytics
Industry specific
rather than market
metrics and C-level
risk alerts
Absolute or
relative metrics
rather than B-I-C
context metrics
Metrics & targets
are industry
agnostic (market
rather than
industry specific)
Risk & Performance
driven by external
circumstances beyond
management control

SIMMETHOD
Index And Risk Alerts
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
future
performance.
10/6/2015 www.simmethod.blogspot.com 20

SIMMETHOD Strategy and Execution
Performance Predictive Index
The following C-Level indices
show your ability to:
• Strategize, execute and compete against
peers and the SIMMETHOD industry-
agnostic Best-In-Class and
• Are leading indicators of future business
opportunities, risk and performance.

SIMMETHOD
Best in Class league Table
•SIMMETHOD’s 2015
Strategy & Execution
Index Business
League Table

SIMMETHOD 2015 Strategy & Execution
0
10
20
30
40
50
60
70
80
C-suite Success Metrics, Leading Indicators And Risk Alerts
Single holistic metric to measure and predict the strategy
and execution of the Best in Class

0
5
10
15
20
25
30
35

-25
-20
-15
-10
-5
0

-70
-60
-50
-40
-30
-20
-10
0

SIMMETHOD
The Way You Measure Determines
Your Results
• Measuring and predicting
Salesforce, Oracle and SAP
ability to strategize and
execute versus the
SIMMETHOD Best in Class
10/6/2015
27

SIMMETHOD
Identifying Salesforce Gap to the Best-In-Class
• Is Salesforce
dynamic gap to the
Best-In-Class
predictive of its
future risk and
performance?

SIMMETHOD
Salesforce Cash/Debt Index
10/6/2015
29
-6
-4
-2
0
2
4
6
8
10
2012 2013 2014 2015
Avg. B-I-C SIMMETHOD
Cash/Debt Index
Salesforce SIMMETHOD
Cash/ Debt Index

SIMMETHOD
Why Salesforce Sales Index Is Negative?
In relation to the SIMMETHOD Best in Class Salesforce
Sales Index matches the following profile:
Unprofitable sales
Cost of sales is high
Needs high overheads to generate $1 of sales
Sales per employee are low
10/6/2015
30

SIMMETHOD
Salesforce Sales Index
10/6/2015
31
-5
-4
-3
-2
-1
0
1
2
3
2012 2013 2014 2015
Avg. B-I-C
SIMMETHOD Sales
Index
Salesforce
SIMMETHOD Sales
Index

SIMMETHOD
Why Salesforce HR Index Is Negative?
In relation to the SIMMETHOD Best in Class Salesforce
HR Index matches the following profile:
Unprofitable human capital
Business value creation is low
Overheads per employee are high
Sales and cash per employee are low
10/6/2015
32

SIMMETHOD
Salesforce HR Index
10/6/2015
33
-5
-4
-3
-2
-1
0
1
2
3
4
2012 2013 2014 2015
Avg. B-I-C
SIMMETHOD HR
Index
Salesforce
SIMMETHOD HR
Index

SIMMETHOD
The Way You Measure Determines Your Results
• Each SIMMETHOD holistic index represents
strengths and weaknesses in a specific area
of your business in relation to current and
future competitors and provides an objective
insight into the strength of your business
strategy, execution, leadership, risk profile,
business model and competitive advantage.
10/6/2015
34

SIMMETHOD
Why Salesforce Management Controllable
Resources Index Is Negative?
• The SIMMETHOD Management Controllable
Resources Index (Management Effectiveness
Index) expresses management’s ability to
maximize the contribution of all the
resources under management control to the
bottom line in relation to current and future
competitors and is a leading indicator of
future risk and performance.
10/6/2015
35

SIMMETHOD
Salesforce Management Controllable
Resources Index
10/6/2015
36
-20
-15
-10
-5
0
5
10
15
20
2012 2013 2014 2015
Management Controllable
Resources Index
Resources index

SIMMETHOD
Salesforce Strategy & Execution
10/6/2015
37
-20
-10
0
10
20
30
40
2012 2013 2014 2015
Average B-I-C
SIMMETHOD Strategy/
Execution Performance
Predictive Index
Strategy/ Execution
Index

SIMMETHOD
Salesforce Risk Index
10/6/2015
38
-12
-10
-8
-6
-4
-2
0
2
4
6
8
2014 2015
Avg. B-I-C
SIMMETHOD Risk
Index
Salesforce
SIMMETHOD Risk
Index

SIMMETHOD
Why Your SIMMETHOD Risk Index Is Important?
The SIMMETHOD Risk Index expresses the risk
of your strategy and execution against peers,
current and future competitors and the
SIMMETHOD Best in Class
As a “Technology Cloud Vendor” such a risk is
embedded in your products and services and is
likely to be transferred to your value-chain
10/6/2015
39

SIMMETHOD
• Is Oracle dynamic
gap to the Best-In-
Class predictive of
its future risk and
performance?

SIMMETHOD
Oracle HR Index
10/6/2015
41
0
1
2
3
4
5
6
7
8
9
10
2012 2013 2014 2015
Avg. B-I-C
SIMMETHOD HR
Index
Oracle
SIMMETHOD HR
Index

SIMMETHOD
Why Oracle HR Index Is Best In Class?
In relation to the SIMMETHOD Best in Class and
peers Oracle HR Index matches the following profile:
For every $1 of sales, Oracle employees generate
$3.5 profit versus Salesforce zero
To achieve $1 of sales, Oracle need to spend 3x less
in overheads than Salesforce
Oracle employees generate 10x more cash than
Salesforce employees
10/6/2015
42

SIMMETHOD
Oracle Overheads Index
10/6/2015
43
-1.5
-1
-0.5
0
0.5
1
1.5
2
2.5
3
3.5
2012 2013 2014 2015
Avg. B-I-C Overheads
Index
Oracle SIMMETHOD
Overheads Index

SIMMETHOD
Oracle Sales Index
10/6/2015
44
-1.5
-1
-0.5
0
0.5
1
1.5
2
2.5
2012 2013 2014 2015
Avg. B-I-C
SIMMETHOD
Sales Index
Oracle
SIMMETHOD
Sales Index
Although has not
recovered previous
levels, it has
moved to positive
territory

SIMMETHOD
Oracle Cash/Debt Index
10/6/2015
45
-4
-3
-2
-1
0
1
2
3
4
5
6
7
2012 2013 2014 2015
Cash/Debt Index
Oracle SIMMETHOD
Cash/ Debt Index
Is it the cloud
investments?

SIMMETHOD
Oracle Management Controllable
Resources Index
10/6/2015
46
-2
0
2
4
6
8
10
12
14
16
2012 2013 2014 2015
Resources Index
Oracle SIMMETHOD
Resources Index
Is there a trend
developing?

C-Level Strategy & Execution Performance
Predictive Indices and Risk Alerts
• When the SIMMETHOD Best in
Class indices and your indices
are moving in opposite
directions, your ability to
compete weakens in proportion
to your widening gap to the
Best-In-Class

SIMMETHOD
Oracle Value Creation Index
10/6/2015
48
0
2
4
6
8
10
12
14
16
18
2012 2013 2014 2015
Value Creation Index
Oracle SIMMETHOD Value
Creation Index

SIMMETHOD
Oracle Strategy & Execution Performance
Predictive Index
10/6/2015
49
0
5
10
15
20
25
30
35
2012 2013 2014 2015
Average B-I-C SIMMETHOD
Strategy/ Execution
Index
Oracle SIMMETHOD
Strategy/ Execution
index

SIMMETHOD
Oracle Risk Index
10/6/2015
50
5.4
5.6
5.8
6
6.2
6.4
6.6
6.8
7
7.2
2014 2015
Avg. B-I-C
SIMMETHOD Risk
Index
Oracle
SIMMETHOD Risk
Index
Oracle’s Risk Index
is at Best in Class
levels , very
important for a
cloud vendor

SIMMETHOD
• Is SAP dynamic gap
to the Best-In-Class
predictive of its
future risk and
performance?

SIMMETHOD
SAP HR Index
10/6/2015
52
-4
-3
-2
-1
0
1
2
3
4
5
6
2012 2013 2014 2015
Avg. B-I-C
SIMMETHOD HR
Index
SAP
SIMMETHOD HR
Index
Is there a trend developing?

SIMMETHOD
SAP Overheads Index
10/6/2015
53
-5
-4
-3
-2
-1
0
1
2
3
2012 2013 2014 2015
Avg. B-I-C Overheads
Index
SAP SIMMETHOD
Overheads Index

SIMMETHOD
SAP Sales Index
10/6/2015
54
-2
-1
-1
0
1
1
2
2
3
2012 2013 2014 2015
Avg. B-I-C
SIMMETHOD Sales
Index
SAP SIMMETHOD
Sales Index

SIMMETHOD
SAP Cash/Debt Index
10/6/2015
55
0
1
2
3
4
5
6
7
2012 2013 2014 2015
Cash/Debt Index
SAP SIMMETHOD Cash/
Debt Index

SIMMETHOD
SAP Management Controllable
Resources Index
10/6/2015
56
-10
-5
0
5
10
15
20
2012 2013 2014 2015
Resources Index
SAP SIMMETHOD
Resources Index

SIMMETHOD
SAP Value Creation Index
10/6/2015
57
0
2
4
6
8
10
12
14
16
18
20
2012 2013 2014 2015
Value Creation Index
SAP SIMMETHOD Value
Creation Index

SIMMETHOD
SAP Strategy & Execution Performance
Predictive Index
10/6/2015
58
0
5
10
15
20
25
30
35
2012 2013 2014 2015
Average B-I-C
SIMMETHOD Strategy/
Execution Performance
Predictive Index
SAP SIMMETHOD
Strategy/ Execution
index

SIMMETHOD
SAP Risk Index
10/6/2015
59
-3
-2
-1
0
1
2
3
4
5
6
7
8
2014 2015
Risk Index (From 2014 to
2015)
SAP SIMMETHOD Risk
Index (From 2014 to
2015)
Improving to positive territory

SIMMETHOD
Competitive Intelligence
Salesforce, Oracle and
SAP: risk and
performance trends
•From 2012
to 2015
10/6/2015
60

SIMMETHOD
Salesforce Performance Trends
10/6/2015
61
-20
-15
-10
-5
0
5
10
15
Salesforce 2012
Salesforce 2013
Salesforce 2014
Salesforce 2015

SIMMETHOD
Oracle Performance Trends
10/6/2015
62
-5
0
5
10
15
20
25
30
Oracle 2012
Oracle 2013
Oracle 2014
Oracle 2015

SIMMETHOD
SAP Performance Trends
10/6/2015
63
-10
-5
0
5
10
15
20
25
30
35
SAP 2012
SAP 2013
SAP 2014
SAP 2015

SIMMETHOD
10/6/2015
64
-30
-20
-10
0
10
20
30
40
B-I-C average Oracle
SIMMETHOD
Strategy/
Execution
Performance
Predictive index
SAP
SIMMETHOD
Strategy/
Execution
Performance
Predictive index
Microsoft
SIMMETHOD
Strategy/
Execution
Performance
Predictive index
IBM
SIMMETHOD
Strategy/
Execution
Performance
Predictive index
Salesforce
SIMMETHOD
Strategy/
Execution
Performance
Predictive Index
SIMMETHOD 2015 Average Best in Class Strategy &
Execution Performance Predictive Index

SIMMETHOD
10/6/2015
65
-30
-20
-10
0
10
20
30
40
Average B-I-C
SIMMETHOD
Strategy/
Execution
Performance
Predictive
Index
Oracle
SIMMETHOD
Strategy/
Execution
Performance
Predictive
index
SAP
SIMMETHOD
Strategy/
Execution
Performance
Predictive
index
Microsoft
SIMMETHOD
Strategy/
Execution
Performance
Predictive
index
IBM
SIMMETHOD
Strategy/
Execution
Performance
Predictive
index
Salesforce
SIMMETHOD
Strategy/
Execution
Performance
Predictive
Index
2012
2013
2014
2015
Although Salesforce’s
strategy & Execution
Performance
Predictive Index is still
negative, it has
improved in 2015

SIMMETHOD
10/6/2015
66
-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
Competitive Intelligence Vs. B-I-C
SIMMETHOD Index Vs. Best in Class Salesforce Oracle SAP
Profit Index Neg Pos Pos
Sales Index Neg Pos Neg
Cash/Debt Index Pos Neg Pos
Asset Index Pos Pos Pos
Overheads Index Neg Neg Pos
HR Index Neg Pos Pos
Management Controllable Resources Index Neg Pos Pos
Value Creation Index Index Pos Pos Pos
Minimum Company Business Model Index Neg Pos Pos
Strategy & Execution Predictive Index Neg Pos Pos
Risk Index Neg Pos Pos
10/6/2015
67

SIMMETHOD
And The Barron’s 500 List
• Is there a correlation between
Oracle’s score in the 2015
SIMMETHOD Strategy &
Execution Best In Class and the
Barron’s 500 list?
10/6/2015 68
WWW.SIMMETHOD.BLOGSPOT.COM

The Barron’s 500
Based on:
• The 500 largest public companies in
the U.S. and Canada measured by
sales with a $5 Billion cut off and
covering every business sector.
10/6/2015
69

Barron’s 500 Ranking Algorithm
“Barron’s seeks to identify companies
that have done the best job of
investing for growth and compares
them on the basis of three equally
weighted metrics”:
10/6/2015
70

Barron’s 500 Ranking Algorithm
• “Median three-year cash-flow-based
ROI,
• Latest fiscal year change in that
measure relative to the three-year
median and
• Adjusted sales growth in the
last fiscal year”
10/6/2015
71

SIMMETHOD
And The Barron’s 500 List
Microsoft Oracle IBM
2015 rank (1 to 500) 215 267 344
2014 rank (1 to 500) 201 70 133
Trend Neg Neg. Neg.
Sales growth (A to F) B D F
Median 3-year cash-flow based ROI (A to F) A A A
Last year change in cash-flow ROI vs. 3-year
median (A to F)
F D D
2015 Barron’s Grade Point Avg. (4 to 0) 2.33 2.33 2.33
2014 Barron’s Grade Point Avg. (4 to 0) 2.33 3 2.67
Trend Same Neg. Neg.
10/6/2015
72

SIMMETHOD B-I-C Profiles And Risk Alerts
Benchmark Your Business Vs. The B-I-C
To review a case study of Apple Inc., compare
your gap to the Best in Class and set up risk
alerts versus the following profiles:
• Profit profile
• Value profile
• Sales profile
• Human Capital profile

SIMMETHOD’s Disclaimer
• The purpose of the SIMMETHOD Strategy &
Execution Performance Predictive Index, Best
In Class profiles 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, Best in Class
profiles and risk and opportunities alerts do
not seek to be exact (in the financial term)
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
10/6/2015 WWW.SIMMETHOD.BLOGSPOT.COM 78

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 measuring and predicting sap, oracle and salesforce risk and performance

Recommended

Recommended

More Related Content

Similar to Simmethod measuring and predicting sap, oracle and salesforce risk and performance

Similar to Simmethod measuring and predicting sap, oracle and salesforce risk and performance (20)

More from SIMMETHOD: Converting Information Into Assets

More from SIMMETHOD: Converting Information Into Assets (11)

Recently uploaded

Recently uploaded (20)

Simmethod measuring and predicting sap, oracle and salesforce risk and performance