Simmethod predictive capabilities, converting your data into a predictive tool that you and your csuite can trust

SIMMETHOD
PERFORMANCE PREDICTIVE
CAPABILITIES
Converting Your Data Into A Predictive Tool
That You And Your C-Suite Can Trust
8/9/2016 1
www.simmethod.blogspot.com

SIMMETHOD
The Missing Link Between Analytics And Trust
“Trust in analytics is lacking:
Less than half are very confident about
the insights they’re deriving from
data and analytics in the areas of risk
and security, customer insights and
business operations”.
KPMG/Forrester survey of 2,165
business executives from 10 countries
as reported by Analytics Magazine
8/9/2016
2
Sorry, we
just can
not trust
you

SIMMETHOD Predictive Capabilities
The Missing Link Between Analytics And Value
“Most companies are capturing
only a fraction of the potential
of data and analytics” Mckinsey
“Value will accrue to providers of
analytics, but some data generators
… will have unique value. Large value
associated with accuracy of
predictions” McKinsey Institute
McKinsey barriers to value creation:
• Data is siloed or fragmented
• Underutilized assets (the relative
value of various assets has
shifted)
• New digital disruptors can
circumvent barriers to entry
• Decision making is subject to
human biases
8/9/2016
3

The Missing Link Between Analytics And Value
The battle for long term survival by Martin
Reeves and Lisanne Pueschel, Boston
Consulting Group: analysis of 35,000
companies publicly listed in the US
• “Companies that died younger
tended to generate lower lifetime
EBIT combined with accelerated
growth”
• “Longer-lived companies thus
appear to create more value than
fast-growing, short-lived ones”.
“A Growth-Endurance
Trade-Off?”
8/9/2016
4

Can industrial era metrics and KPIS
mislead you into the wrong decisions?
8/9/2016 www.simmethod.blogspot.com 5
IBM CFOs Insights: 53%
of CFOs think they are
not effective at
measuring and
managing performance
Tip of the iceberg Internally
focused and industrial-era
risk & performance metrics
Siloed and unintegrated
(out of the hat) Business
Intelligence, Predictive
analytics & risk metrics
What sank the Titanic
and is sinking some of
our great companies?
How to fend-off
disruptors from different
industries when the
whole market is your
new fishbowl? Borders?
Circuit City?
How to measure customer
value-add and the new
levers of value creation?

Is Business Failure Driven By Internal Management
Decisions And Broken-Metrics Or External
Circumstances Beyond Management Control?
All analytics point North but
the business goes South
Morgan Stanley Chief
Equity Strategist:
Investors looking to
old ways to value
stocks would come up
with bad answers
Broken Stock Market
(out-of –the-hat) metrics
such as beating quarterly
analyst expectations
CFO metrics: How to make sense
of the Tower Of Babel metrics
How long would it take for you to
realize that you will be
outperformed by new competitors?
CIO’s metrics that are
not aligned to the
CMO and the KPIS of
the CFO
Quarterly product
delivery metrics
unlinked to business
value creation
Deloitte CFO’s
Concerns: predicting
execution missteps

SIMMETHOD
Performance Predictive Capabilities
Back in Australia, where I worked
as Westfield’s CIO for 8 years,
one of my senior programmers
asked me for time off because
his wife was going to have a baby.
1/18/2017 7
WWW.SIMMETHOD.COM

SIMMETHOD
When he came back,
we all asked: boy or girl?
I do not know, he replied:
“Now we have to wait for
9 months”.
1/18/2017 8
WWW.SIMMETHOD.COM

SIMMETHOD
In business intelligence,
performance and risk
management, forecasting and
Predictive analytics, (as in making
babies) the best way to predict
your outcomes is to create them!
1/18/2017 9
WWW.SIMMETHOD.COM

SIMMETHOD
• Fortune 500 Editorial Team:
"Whether you prevail, fail,
endure or die, whether you make
it to the Fortune 500 and stay
there, depends more on what
you do to yourself than what the
world does to you"
8/9/2016
10

SIMMETHOD
Turning Your Analytics Into Your CFO Most
Important Business Tool
SIMMETHOD
Strategy
Execution
Performance
Predictive Index
Crowd-sourced analytics
linked to a success metrics
database that
incorporates the wisdom
of the market
C-suite holistic analytics
integrated to market Best
In Class and new levers of
value creation (Solves the
Tower Of Babel metrics)
Industry agnostic value
chain analytics to fend off
disruptors from different
industries (The full market
is your new fishbowl)
Moving gap to Best In Class
risk alerts to identify
hidden risks and
opportunities & keep your
performance at Best In
Class levels
8/9/2016
11

SIMMETHOD
Turning Your Analytics Into Your CFO Most
Important Business Tool
1/18/2017
12
Traditional business intelligence,
analytics and risk metrics
dashboards lead to erroneous
and inaccurate C-level decisions
Partnership between your
business intelligence, analytics
and SIMMETHOD for Best in
Class performance. It protects
the C-suite from erroneous
decisions based on inaccurate
analytics

Predictive Link Between Your SIMMETHOD
Index And Your Future Performance
• As it happened in previous
years, companies that
matched the SIMMETHOD
Best In Class profile in 2015
and complied with the
SIMMETHOD 7 Laws Of
Growth And Value Creation,
performed at Best In Class
level in 2016
8/9/2016
13

• SIMMETHOD predicts that
companies that matched the
SIMMETHOD Best In Class
profile in 2016 and complied
with the SIMMETHOD 7 Laws
Of Growth And Value
Creation, will increase their
value and outperform their
peers in 2007
8/9/2016
14

-25
-20
-15
-10
-5
0
5
10
15
SIMMETHOD 2015- 2016 Best In Class %
profit increase
SIMMETHOD 2015-2016 laggards %
profit decrease
Link between the companies that matched the
SIMMETHOD 2015 Best in Class profile and their
performance one year later in 2016
8/9/2016 15

-20
-15
-10
-5
0
5
10
15
20
25
SIMMETHOD 2015-2016 Best In Class
profit per employee % increase
SIMMETHOD 2015-2016 laggards profit
per employee % decrease
8/9/2016 16

-16
-14
-12
-10
-8
-6
-4
-2
0
SIMMETHOD 2015-2016 Best in Class %
overheads decrease
SIMMETHOD 2015-2016 laggards %
overheads decrease
8/9/2016 17

-25
-20
-15
-10
-5
0
SIMMETHOD 2015-2016 Best in Class
overheads per employee % decrease
SIMMETHOD 2015-2016laggards
overheads per employee % decrease
8/9/2016 18

8/9/2016 19
-25
-20
-15
-10
-5
0
2015-2016
% Sales
decrease
2015-2016
% Profit
decrease
2015-2016
% Assets
decrease
2015-2016
% Market
value
decrease
2015-2016
% Return
on assets
2015-2016
% Asset
valuation
SIMMETHOD 2015 laggards profile and their

SIMMETHOD’s Risk Alerts Predictive Of
Future Value Creation
In the era of the:
• Internet Of Things,
• Smart connected products,
• Ecosystems of products and
• Industry agnostic enterprises,
Context risk alerts such as gaps to the Best In Class
that are based on strategy and execution,
precede and are more powerful than isolated
indicators based on quarterly product-delivery
or “beating quarterly analysts expectations”.
1/18/2017
www.SIMMETHOD.blogspot.com
20

The Leading Indicators Of The Best In Class (BIC)
2015
to
2016
Value
Creation
Index 2015
Management
Effectiveness
Index 2015
Business
Model
Index 2015
Strategy Execution
Performance
Predictive Index 2015
2016
Market
Value
Visa BIC BIC BIC BIC Up
Tencent BIC BIC BIC BIC Up
Microsoft BIC BIC BIC BIC Up
Checkpoint BIC BIC BIC BIC Same
Facebook BIC BIC BIC BIC Up
Google BIC BIC BIC BIC Up
Oracle BIC Below BIC BIC Below BIC Down
SAP BIC Below BIC Below BIC Below BIC Up
IBM Below BIC Below BIC Below BIC Below BIC Down
Salesforce Below BIC Below BIC Below BIC Below BIC Down
1/18/2017 21

SIMMETHOD
The Leading Indicators Of The Best In Class (BIC)
2015
to
2016
Value
Creation
Index 2015
Management
Effectiveness
Index 2015
Business
Model
Index 2015
Strategy Execution
Performance
Predictive Index 2015
2016
Market
Value
Visa BIC BIC BIC BIC Up
Tencent BIC BIC BIC BIC Up
MasterCard BIC BIC BIC BIC Up
Checkpoint BIC BIC BIC BIC Same
Facebook BIC BIC BIC BIC Up
Google BIC BIC BIC BIC Up
Priceline BIC BIC BIC BIC Up
Apple Below BIC BIC BIC BIC Down
Moody’s BIC Below BIC BIC Below BIC Down
Intuit BIC Below BIC Below BIC BIC Down
1/18/2017 22

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:
1/18/2017
WWW.SIMMETHOD.BLOGSPOT.COM
23

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
1/18/2017
24

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
26

Yahoo And The SIMMETHOD 7 Laws Of
At BIC Levels?
BIC
7 Laws
Compliance
Sales Pos, No Pos Pos Yes
HR Pos, Yes Neg Pos Yes
Management
Controllable
Resources
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
27

Microsoft And The SIMMETHOD 7 Laws Of
At BIC levels?
BIC
7 Laws
Compliance
Sales Pos, No Neg Neg No
HR Pos, Yes Neg Pos Yes
Management
Controllable
Resources
Pos, No Neg Neg No
Value Creation Pos, Yes Neg Pos Yes
Business Model Pos, No Neg Neg No
Strategy &
Execution
Performance
Predictive
8/9/2016
28

LinkedIn And The SIMMETHOD 7 Laws Of
At BIC Levels?
BIC
7 Laws
Compliance
Sales Pos, No Pos Pos Yes
HR Pos, Yes Pos Pos Yes
Management
Controllable
Resources
Pos, Yes Pos Pos Yes
Business Model Neg, No Pos Pos No
Strategy &
Execution
Performance
Predictive
8/9/2016
29

Oracle And The SIMMETHOD 7 Laws Of
At BIC levels?
BIC
7 Laws
Compliance
Sales Neg, No Neg Neg No
HR Pos, Yes Neg Pos No
Management
Controllable
Resources
Pos, No Neg Neg No
Business Model Pos, No Neg Neg No
Strategy &
Execution
Performance
Predictive
Pos, No Neg Neg No
Risk Pos, Yes Pos Pos Yes
8/9/2016
30

SAP And The SIMMETHOD 7 Laws Of
At BIC levels?
BIC
7 Laws
Compliance
Sales Neg, No Pos Neg No
HR Pos, No Pos Pos No
Management
Controllable
Resources
Pos, No Neg Neg No
Value Creation Pos, Yes Neg Neg No
Business Model Neg, No Neg Neg No
Strategy &
Execution
Performance
Predictive
Pos, No Neg Neg No
Risk Pos, No Same Pos No
8/9/2016
31

IBM And The SIMMETHOD 7 Laws Of
At BIC Levels?
BIC
7 Laws
Compliance
Sales Neg, No Pos Pos No
HR Neg, No Neg Neg No
Management
Controllable
Resources
Neg, No Neg Neg No
Value Creation Neg, No Neg Neg No
Business Model Neg, No Pos Neg No
Strategy &
Execution
Performance
Predictive
Neg, No Pos Neg No
Risk Neg, No Neg Neg No
8/9/2016
32

SIMMETHOD
Metrics to improve your predictions
SIMMETHOD
B-I-C metrics
Laggards’
metrics
Internally focused
Industry specific
Silos based
Absolute or
relative ratios
Crowd sourced
C-level analytics
Industry agnostic
Holistic strategy
& execution
Context at
market level
1/18/2017 33

SIMMETHOD
Strategy & Execution Performance Predictive Index
Market context rather than an absolute metric
Enterprise holistic and predictive rather than silo-based
Industry agnostic rather than specific enables correlations and integration
across the value chain
Based on algorithms that mix external competitive intelligence and crowd-
sourced analytics with internal financial and operational data
Self correcting and linked to a success metrics competitive intelligence
database
1/18/2017 34

SIMMETHOD
Can Raw Data Predict Your Risk And
Performance?
Is there a disconnect between your
raw data and your SIMMETHOD
indices?
• When your raw data (such as your
sales) is trending up and your
corresponding SIMMETHOD Sales
Index is trending down, your level
of risk is increasing. Why?
1/18/2017 WWW.SIMMETHOD.BLOGSPOT.COM 35

SIMMETHOD
Unlike raw data (e.g. sales), the SIMMETHOD
Sales Index holistically measures:
The resources necessary to deliver $1 of sales
in relation to peers and the Best In Class and
The contribution of your sales to the health
and value of your business in relation to your
peers and the Best In Class
1/18/2017
36

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
37

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
38

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
1/18/2017 39www.simmethod.blogspot.com

SIMMETHOD’s Algorithm
Path to Best In Class performance
• Operational and financial data is converted to
industry agnostic strategy & execution, risk and
performance indices using the 7 Laws of Growth,
Best Practices and Value Creation as a framework
and C-level crowd analytics
Convert data into industry-
agnostic indices using
SIMMETHOD’s 7 Laws
framework and crowd
analytics algorithms
• Strategy & execution performance predictive
indices are used to select Best In Class companies
across a range of industries within the SIMMETHOD
business league table
Select Best In Class in
business league table
• Best In Class profiles with specific ratios, trends,
gaps and risk alerts to highlight the most cost
effective path to Best In Class performance and
fend off current and future competitors.
Calculate C-level Best In
Class profiles and risk and
opportunity alerts
www.simmethod.blogspot.com 401/18/2017

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

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 46www.simmethod.blogspot.com

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Simmethod predictive capabilities, converting your data into a predictive tool that you and your csuite can trust