Simmethod why and benefits, vmware and cisco case studies

SIMMETHOD
A New Way To Measure And Predict
Your Risk And Performance In The
Industry-Agnostic Digital Economy
The Industrial Era Metrics We Use To
Measure Your Business Risk And Performance
Are Broken And Failing The C-suite
Vmware And Cisco Case Studies
3/3/2016 1www.SIMMETHOD.blogspot.com

The industrial-era metrics we use to measure risk and
performance are broken and failing the C-suite
In spite of Billions of dollars spent on
analytics there is mounting
evidence that :
• The risk of your decisions is
increasing making enterprise risk
management less effective
3/3/2016 2
www.SIMMETHOD.blogspot.com

The industrial-era metrics we use to measure risk and
performance are broken and failing the C-suite
• The risk of being
outperformed by new
competitors coming
from different
industries is increasing
3/3/2016
3

The industrial-era metrics we use to measure risk
and performance are broken and failing the C-suite
• C-level risk alerts are
based on industrial-era
classifications designed
for a business
environment that does
not longer exist
3/3/2016
4

• Enterprise risk and
performance metrics
are silo-based,
unintegrated, open to
manipulation and not
aligned to the C-suite or
the customers.
3/3/2016
5

Companies are a “Tower
Of Babel” where the risk
and performance
metrics of the CIO or
CMO are not aligned to
the CFO and the Board
Of Directors
3/3/2016
6

The B2B selling cycle is
increasing due to the
disconnect between
products and services
and the value
creation metrics of
your customers
3/3/2016
7

SIMMETHOD
The Way We Measure Business Risk And
Performance Is Broken And Failing The C-suite
•The
evidence

SIMMETHOD
Is Business Decision-Making Slowing Down?
“The idea that time is speeding up is clearly
popular. It is also plausible. There is just one
problem. It is very hard to prove that it is actually
happening”. The Economist, December 2015
“Yet hard evidence of a great acceleration is hard
to come by. The Economist has considered a
variety of measures by which the speed of
business in America can be quantified. A few do
show some acceleration. But a lot do not”. The
Economist, December 2015
3/3/2016
9

SIMMETHOD
Is Business Intelligence And Analytics Failing The C-Suite?
According to Protivity Risk & Business Consulting:
• Although Board members and senior executives
receive hundreds of pages of risk and
performance related information,
• They struggle to make sense of all these deluge
of data in a way that can be converted into
actionable information.
3/3/2016 www.SIMMETHOD.blogspot.com 10

SIMMETHOD
In benchmarking the speed of key
processes across the corporate
sector,
• We find again and again that
decision-making at even the most
basic level has slowed materially
over the past five to ten years”.
Tom Monahan, CEB Chairman on
Fortune Jan 28, 2016.
3/3/2016 11

SIMMETHOD
As stated by Tom Monahan,
“Things got even slower when
companies meshed
processes” resulting on:
• Poorly coordinated growth of
risk management,
compliance, privacy and data
protection
3/3/2016 12

SIMMETHOD
• “Nine-fold increase in the number of
different ERM functions over the last
ten years”
• “Technology misuse where 60% of
employees must consult with at least
10 colleagues each day just to get
their jobs done”
(based on 23,000 responses)
3/3/2016
13

SIMMETHOD
Why The
SIMMETHOD
Success
Metrics And
Risk Alerts
CEB Study of 400
corporate recruiters:
Hiring of new
employees now take 63
days up from 42 days in
2010
CEB Study of 2000 Project
Managers at 60 global
organizations: Avg. time to
deliver an IT project increased
from 2010 to 2015 by over a
month to 10 months
CEB B2B Surveys: Time for B2B
sales have risen by 22% and
gaining consensus has risen from 1
to 2 to 5 buyers or more
CEB Study of 2000
Project Managers:
Every month of
delay in an IT
project costs
$43,000 and up

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

SIMMETHOD
Predictive Risk And Performance
• As shown by Gartner
Research, although BI and
analytics will continue at
the top of the CIO agenda
in 2016,
• Aligning it to the C-suite
and the way you measure
(your metrics) will
determine your results.
3/3/2016 16

SIMMETHOD
•SIMMETHOD
Crowd-Sourced
Competitive Intelligence
Analytics

SIMMETHOD Strategy & Execution
Performance Predictive Tools
How to holistically
measure and predict
the outcome of your
strategy & execution
in the new digital
economy?

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

The SIMMETHOD Benefits
A New Way To Predict Your Risk And Performance
SIMMETHOD
Benefits
Measures and predicts
your risk &
performance versus
the Best in Class
Converts your
strategy & execution
into B-I-C
performance
Industry agnostic correlations
linking something you know
to something you do not
know.
Reduces your B2B selling
cycle by linking your
products to the metrics of
your customers’ CFOS
Industry agnostic and
holistic risk alerts linked to
a global database of
competitive intelligence
Aligns the metrics of
your CIO & CMO to
your CFO and value
chain
Links your resources to
business value creation
and your employees to
B-I-C performance
3/3/2016
20

The SIMMETHOD Tools
A New Way To Predict Your Risk And Performance
SIMMETHOD
success
metrics &
risk alerts
Risk and
performance
predictive
Algorithms
7 Laws of growth
and value creation
Risk, growth and
Performance
predictive Indices
Strategy &
execution
league table
Industry
agnostic
Best-In-Class
profiles
Gaps to the
market
Best-In-Class
C-level risk alerts
linked to a global
competitive
intelligence database

The SIMMETHOD Algorithms And The 7
Laws Of Growth And Value Creation
SIMMETHOD
7 Laws of
growth
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

SIMMETHOD
•VMware
and Cisco
case studies
3/3/2016
23

SIMMETHOD Trends
VMware 2012 To 2015
3/3/2016
24
-10
0
10
20
30
40
50
Vmware
2012
Vmware
2013
VMWare
2014
Vmware
2015
All composite SIMMETHOD
indices point to a consistent
negative trend from 2014 to
2015

SIMMETHOD
VMware Versus The Best In Class
3/3/2016
25
0
5
10
15
20
25
30
35
40
45
50
2012 2013 2014 2015
Average B-I-C
SIMMETHOD
Strategy/
Execution
Performance
Predictive Index
VMware
SIMMETHOD
Strategy/
Execution
Performance
Predictive index
Negative trend
versus the
performance of
the Best In Class

SIMMETHOD
3/3/2016
26
0
2
4
6
8
10
12
14
16
18
2012 2013 2014 2015
Avg. B-I-C
SIMMETHOD
Management
Controllable
Resources Index
VMware
SIMMETHOD
Management
Controllable
Resources Index
Negative trend versus
the performance of the
Best In Class

SIMMETHOD
3/3/2016
27
0
5
10
15
20
25
30
2012 2013 2014 2015
Avg. B-I-C
SIMMETHOD
Value
Creation
Index
VMware
SIMMETHOD
Value
Creation
Index
Although still at B-I-C
levels, the trend of the
Value Creation Index versus
the B-I-C is negative

SIMMETHOD
3/3/2016
28
0
2
4
6
8
10
12
14
2012 2013 2014 2015
Avg. B-I-C
SIMMETHOD
Cash/Debt
Index
VMware
SIMMETHOD
Cash/ Debt
Index
Vmware’s Cash/Debt
Index continues to be a
source of strength and
competitive advantage

SIMMETHOD
3/3/2016
29
-3
-2
-2
-1
-1
0
1
1
2
2
3
2012 2013 2014 2015
Avg. B-I-C
SIMMETHOD Sales
Index
VMware
SIMMETHOD Sales
Index
The negative 2015 SIMMETHOD
Sales Index is a strong leading
indicator of VMware’s future risk
and performance

SIMMETHOD
3/3/2016
30
0
1
2
3
4
5
6
7
8
2012 2013 2014 2015
Avg. B-I-C
SIMMETHOD
HR Index
VMware
SIMMETHOD
HR Index
Although still at B-I-C
levels, the HR Index
continues the
negative trend
narrative

SIMMETHOD
3/3/2016
31
-7
-6
-5
-4
-3
-2
-1
0
1
2
3
2012 2013 2014 2015
Avg. B-I-C
Overheads
Index
VMware
SIMMETHOD
Overheads
Index
Overheads Index versus the B-I-C
continues to drag Vmware’s
performance down

SIMMETHOD
3/3/2016
32
0
1
2
3
4
5
6
7
8
2014 2015
Avg. B-I-C
SIMMETHOD Risk
Index
VMware
SIMMETHOD Risk
Index
Increasing risk versus the SIMMETHOD Best
In Class

SIMMETHOD
VMware And Cisco Versus The Best In Class
3/3/2016
33
-2
-1
0
1
2
3
4
5
6
7
SIMMETHOD 2015
Best In Class Growth
Index
Cisco
VMware
SIMMETHOD 2015 Growth Index

SIMMETHOD
3/3/2016
34
-1
-0.5
0
0.5
1
1.5
2
2.5
3
3.5
SIMMETHOD 2015
B-I-C Value Creation
Sales Index
Cisco
VMware
SIMMETHOD 2015 Value Creation Sales Index
Although Cisco Growth Index was higher, it
did not create as much value from its sales
as VMware and neither of them leveraged
the value of their sales to B-I-C levels

SIMMETHOD
3/3/2016
35
0
5
10
15
20
25
30
35
SIMMETHOD 2015 B-I-C
Profitable Sales Index
Cisco VMware
SIMMETHOD 2015 Profitable Sales
Index
Although Cisco Sales did not create as much business
value as VMware in 2015, they were more profitable and
generated more growth versus the B-I-C

SIMMETHOD
3/3/2016
36
-6
-4
-2
0
2
4
6
8
10
12
14
SIMMETHOD
Profit Index
SIMMETHOD
Cash/Debt
index
SIMMETHOD
Overheads
index
SIMMETHOD
HR Index
Vmware
Cisco
SIMMETHOD
2015 B-I-C
Vmware & Cisco strengths
and weaknesses versus the
2015 SIMMETHOD Best in
Class

SIMMETHOD
3/3/2016
37
-5
0
5
10
15
20
25
30
35
SIMMETHOD
Minimum
Company
Business Model
Index
SIMMETHOD
Management
Controllable
Resources
Index
SIMMETHOD
Risk Index
SIMMETHOD
Strategy &
Execution
Performance
Predictive index
Vmware
Cisco
SIMMETHOD
2015 B-I-C
Your gap to the SIMMETHOD Best In
Class is predictive of your future risk
and performance

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

SIMMETHOD 2015 Strategy & Execution
Performance Predictive Index
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. Vmware Strategy &
Execution Performance Predictive Index

0
5
10
15
20
25
30
35
Cisco Strategy & Execution
Performance Predictive index

-25
-20
-15
-10
-5
0

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

Why Do Businesses Succeed Or Fail?
SIMMETHOD Premise
SIMMETHOD
premise is simple:
Businesses fail primarily due to
internal decision-making based on
outdated industrial-era metrics,
rather than external circumstances
beyond management control.

SIMMETHOD
Crowd-Sourced Competitive Intelligence
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 2016
performance.
3/3/2016 WWW.SIMMETHOD.BLOGSPOT.COM 44

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 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.

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 why and benefits, vmware and cisco case studies

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