We reported the benefits and downturns of practices known as 'stack ranking' in incentive and rewards systems, the trends in the gaming industry worldwide and, finally, we implemented a Balanced Scorecard by scrupulously analysing the firm's strategy and translating it into quantitative Key Performance Indicators for evaluation and communicational purposes
The document discusses findings from a global market research project on how IT leaders are responding to the economic crisis. It finds that while many companies are struggling and cutting costs, a new breed of forward-thinking IT leaders understand how to use technology strategically. These IT leaders are reducing infrastructure costs, increasing efficiencies through virtualization and cloud computing, and better positioning their companies to weather the economic downturn. The document provides recommendations for IT leaders on managing through the recession, including modifying business plans, focusing on enabling the business rather than just costs, and exploring outsourcing and infrastructure consolidation.
Hexaware Technologies Ltd. is a global leader of IT, BPO and consulting services. They serve customers in Banking, Financial Services, Capital Markets, Healthcare, Insurance, Manufacturing, Retail, Education, Telecom, Professional services (Tax, Audit, Accounting and Legal), Travel, Transportation and Logistics. Hexaware has been the fastest organically growing IT services company.
My valuation of Cognizant both intrinsic valuation and pricing models with some regression built in; as Cognizant rotates to digital the question becomes can they maintain there very high growth standards. Currently I find them to be a buy. Many experts don't.
See how the new CFO is adapting to a changing financial landscape, utilizing transformative new technology to disrupt, innovate and generate value for the insurance industry. Now is a pivotal moment for CFOs. Our new research on the dynamic role of the finance function reveals how the CFO is positioned at the center of the organization, side by side with the CEO, turning finance into an engine that can power the entire enterprise.
Learn more: https://www.accenture.com/us-en/insights/insurance/cfo-research-insurance
Market share analysis india-based providers' performance show mixed results ...Semalytix
Summary:
Collectively and individually, the impact of the six leading India-based IT services providers continued in 2009, with HCL, Cognizant, Wipro, TCS, and Infosys (in order of growth rates) all achieving growth that outpaced the rest of the market,
Key Findings
• In 2009, the top six India-based providers' collective share of the global IT services market was 2.7%, up slightly from their 2.5% share in 2008.
• The largest of the India-based providers, TCS, with $5.7 billion in worldwide revenue in 2009, is ranked No. 25 in overall IT services market share
• The top India-based performers in total IT services revenue growth were HCL (27.6% annual growth on $2.2 billion in revenue) and Cognizant (16.4% growth on $3.1 billion in revenue). In rank order, HCL moved up from 75th position in 2008 to 60th in 2009 and Cognizant moved up from 48th to 42nd in the same time period.
• The top six India-based providers are also clearly diversifying their geographic presence, as well as expanding their service lines
HCL:
HCL recorded the highest growth in 2009, benefiting from the acquisition of SAP consultancy Axon, as well as winning some large total outsourcing deals signed in 2008, revenue of which flowed into the subsequent quarters of 2009. These total outsourcing deals also included rebadging of client employees quite unlike other Indian providers. High growth was also the result of aggressive and focused sales efforts to retain clients. Moreover, HCL experienced relatively little impact in the vendor consolidation activity during the downturn, which signifies high customer satisfaction among HCL's clients; contributing factors of quality process focus, as well as the company's "employee first, customer second" principle. HCL's acquisition of Axon also yielded business growth, as it continued to upsell/cross-sell services to this newly acquired client base.
Pwc 2015 Technology Sector Sec Comment Letter TrendsPwC
PwC's technology industry publication provides a comprehensive analysis of recent SEC staff comments and disclosures to assist you in understanding the key trends relevant to companies in the technology sector.
- Revenue for the quarter was up 9.1% to Rs 846.2 crore but down 1.4% in dollar terms to $12.08 crore.
- EBITDA margin recovered to 19.70% this quarter after declining in previous quarters. EBITDA was up 1.8% QoQ.
- Profit after tax was up 4.1% QoQ but flat at 0.1% YoY growth at Rs 91.71 crore.
- Digital business revenue grew 6.4% QoQ after soft performance in previous quarters. However, revenue from IBM Alliance and Accelerite segments grew slower than expected.
The document describes a proprietary screen called Yield Leaders that ranks stocks based on their shareholder yield, which is the sum of the annual dividend yield and percentage of shares bought back over the past year. The screen provides a list of companies that aggressively return cash to shareholders through dividends and share buybacks. The top ranked stocks on the August 12, 2016 list are shown along with their shareholder yield and other relevant data.
The document discusses findings from a global market research project on how IT leaders are responding to the economic crisis. It finds that while many companies are struggling and cutting costs, a new breed of forward-thinking IT leaders understand how to use technology strategically. These IT leaders are reducing infrastructure costs, increasing efficiencies through virtualization and cloud computing, and better positioning their companies to weather the economic downturn. The document provides recommendations for IT leaders on managing through the recession, including modifying business plans, focusing on enabling the business rather than just costs, and exploring outsourcing and infrastructure consolidation.
Hexaware Technologies Ltd. is a global leader of IT, BPO and consulting services. They serve customers in Banking, Financial Services, Capital Markets, Healthcare, Insurance, Manufacturing, Retail, Education, Telecom, Professional services (Tax, Audit, Accounting and Legal), Travel, Transportation and Logistics. Hexaware has been the fastest organically growing IT services company.
My valuation of Cognizant both intrinsic valuation and pricing models with some regression built in; as Cognizant rotates to digital the question becomes can they maintain there very high growth standards. Currently I find them to be a buy. Many experts don't.
See how the new CFO is adapting to a changing financial landscape, utilizing transformative new technology to disrupt, innovate and generate value for the insurance industry. Now is a pivotal moment for CFOs. Our new research on the dynamic role of the finance function reveals how the CFO is positioned at the center of the organization, side by side with the CEO, turning finance into an engine that can power the entire enterprise.
Learn more: https://www.accenture.com/us-en/insights/insurance/cfo-research-insurance
Market share analysis india-based providers' performance show mixed results ...Semalytix
Summary:
Collectively and individually, the impact of the six leading India-based IT services providers continued in 2009, with HCL, Cognizant, Wipro, TCS, and Infosys (in order of growth rates) all achieving growth that outpaced the rest of the market,
Key Findings
• In 2009, the top six India-based providers' collective share of the global IT services market was 2.7%, up slightly from their 2.5% share in 2008.
• The largest of the India-based providers, TCS, with $5.7 billion in worldwide revenue in 2009, is ranked No. 25 in overall IT services market share
• The top India-based performers in total IT services revenue growth were HCL (27.6% annual growth on $2.2 billion in revenue) and Cognizant (16.4% growth on $3.1 billion in revenue). In rank order, HCL moved up from 75th position in 2008 to 60th in 2009 and Cognizant moved up from 48th to 42nd in the same time period.
• The top six India-based providers are also clearly diversifying their geographic presence, as well as expanding their service lines
HCL:
HCL recorded the highest growth in 2009, benefiting from the acquisition of SAP consultancy Axon, as well as winning some large total outsourcing deals signed in 2008, revenue of which flowed into the subsequent quarters of 2009. These total outsourcing deals also included rebadging of client employees quite unlike other Indian providers. High growth was also the result of aggressive and focused sales efforts to retain clients. Moreover, HCL experienced relatively little impact in the vendor consolidation activity during the downturn, which signifies high customer satisfaction among HCL's clients; contributing factors of quality process focus, as well as the company's "employee first, customer second" principle. HCL's acquisition of Axon also yielded business growth, as it continued to upsell/cross-sell services to this newly acquired client base.
Pwc 2015 Technology Sector Sec Comment Letter TrendsPwC
PwC's technology industry publication provides a comprehensive analysis of recent SEC staff comments and disclosures to assist you in understanding the key trends relevant to companies in the technology sector.
- Revenue for the quarter was up 9.1% to Rs 846.2 crore but down 1.4% in dollar terms to $12.08 crore.
- EBITDA margin recovered to 19.70% this quarter after declining in previous quarters. EBITDA was up 1.8% QoQ.
- Profit after tax was up 4.1% QoQ but flat at 0.1% YoY growth at Rs 91.71 crore.
- Digital business revenue grew 6.4% QoQ after soft performance in previous quarters. However, revenue from IBM Alliance and Accelerite segments grew slower than expected.
The document describes a proprietary screen called Yield Leaders that ranks stocks based on their shareholder yield, which is the sum of the annual dividend yield and percentage of shares bought back over the past year. The screen provides a list of companies that aggressively return cash to shareholders through dividends and share buybacks. The top ranked stocks on the August 12, 2016 list are shown along with their shareholder yield and other relevant data.
International Capital Standard (ICS) Background PwC
PwC US risk & capital management leader Henry Essert and PwC global insurance regulatory director Ed Barron
recently sat down to discuss the proposed International Capital Standards (ICS) for insurers. They addressed at
length what the ICS is and what it could mean to insurers. The following pages contain their thoughts on the
standard, as well as some background information on capital management and related issues in the
insurance industry.
The document provides an outlook on the investment grade semiconductor sector for 2019. It finds that credit quality remains robust due to competitive advantages that drive strong returns and cash flow. While growth is expected to slow in 2019, margins may continue to expand. Key risks include potential impacts from US-China trade conflicts and mergers & acquisitions. Overall, the outlook maintains stable ratings for six of seven covered issuers, with positive outlook for one, as demand from new end uses supports long-term growth despite some near-term headwinds.
Mercer Capital's Value Focus: FinTech Industry | First Quarter 2015Mercer Capital
The document provides an overview and analysis of the FinTech industry for the first quarter of 2015. Some key points:
- FinTech outperformed broader markets in Q1 as investor interest remained high. Valuation multiples continued to expand relative to historical levels.
- 18 FinTech IPOs occurred in 2014-Q1 2015, with a median stock price return of 12% since IPO. Eight IPOs had market caps over $1 billion.
- FinTech M&A activity was flat in Q1 2015 vs Q1 2014, but deal values increased significantly, led by several billion-dollar deals in payments and healthcare software.
- The document analyzes financial performance, margins, and valuation metrics for
2014 Property & Casualty Insurance Industry Outlook: Innovation leading the wayDeloitte United States
On the surface the property and casualty sector appears to be doing quite well, but running an insurance carrier is rarely smooth sailing. The last few years have been particularly difficult for those occupying C-Suite positions, as more fundamental issues are threatening not only short-term results on their balance sheets, but challenging the long-term viability of their operating models as well.
For example, a growing number of insurers are facing significant organizational disruption. Many have made large-scale investments in technology, replacing core systems for claims, policy administration and finance. Their chief challenge now is how to effectively leverage the new systems they’ve put in place and maintain their momentum with additional innovations in personnel, products and culture.
Additionally, ongoing political gridlock in Washington could undermine an already unsteady economic recovery. Not to mention regulatory uncertainty that makes it difficult for carriers to plan ahead and determine operational priorities.
Innovation may ultimately be the key to keep insurers growing regardless of shifting economic and insurance market conditions, as they devise ways to thwart ongoing and emerging competitive threats as well as capitalize on new opportunities.
For more - visit http://www.deloitte.com/view/en_US/us/Industries/Insurance-Financial-Services/039bdd0819e23410VgnVCM3000003456f70aRCRD.htm
In 2013, the ban on general solicitation of accredited investors was lifted, causing the largest change to securities laws in decades. While everyone from startups to hedge funds will enjoy new liberties in investor marketing and outreach campaigns, it’s critical that the new rules are followed to a T, eliminating the chance for exemption rescission.
Insurers are continuing to face marked changes in what customers expect in terms of products and service, how they obtain and utilize the information that informs business decisions, and their underlying business and operating models. Top Insurance Industry Issues in 2016 describes in detail the internal and external changes insurers face and how they can gain a competitive advantage..
Basel III Mortgages: Australia - Key Themes and Strategic Approachaccenture
The point of view explores the new Basel III reforms and the significant impact they will have on data and systems in Australia. The piece offers a strategic approach to Basel III Mortgages and outlines five key questions Australia’s banks need to ask as they prepare for additional regulatory obligations.
18th Annual Global CEO Survey - Technology industry key findingsPwC
Technology industry CEOs are optimistic about growth prospects. Most see more opportunities than threats and expect revenue growth over the next three years. However, they also face challenges from disruption, convergence, and new competitors emerging from other industries like professional services and media. To succeed in this environment, CEOs see the need to invest in digital technologies, form new partnerships including with competitors, and demand a more diverse talent pool with broader skills.
The document discusses IBM enhancing its corporate performance management software solutions - Cognos TM1 and Cognos 8 Controller. The upgrades aim to improve analytic capabilities and budget consolidation. This will help organizations make better and faster decisions across departments by extending analytics. The enhancements are meant to reduce planning and reporting cycles. Adopting such solutions could help companies drive smarter decisions for better outcomes through predictive analytics compared to using spreadsheets. IBM sees big potential in business analytics and is focused on building capabilities around it.
Persistent Systems is a global company specialized in software product and technology services. It is an Outsourced Product Development specialty company, offering the customers the benefits of offshore delivery. Persistent has customers spread across North America, Europe, and Asia.
When it comes to scrutinizing costs, most insurance companies can say “Been there, done that. Got the t-shirt.” Managers are familiar with the refrain from above to trim here and cut there. The typical result is flirtation with the latest management trends like lean, outsourcing and offshoring, and others. However, the results tend to be the same. Budgets reflect last year’s spend plus or minus a couple of percent in the same places.
The document provides an overview of the impact of COVID-19 on the FinTech industry. It summarizes that FinTech stocks have declined similarly to the overall market decline but have historically outperformed in past downturns. Public company valuations have fallen significantly from peaks. The economic impact of COVID-19 has been more severe than past recessions based on a surge in unemployment claims.
Verisk Analytics operates in the business services industry, providing data and decision support solutions. It has established leading positions in sub-markets primarily serving insurance, financial services, and energy industries. This is due to proprietary databases that are hard for competitors to replicate and customers to switch from, and high customer retention driven by sticky relationships. The internal rating on Verisk is higher than external ratings due to its strong competitive position resulting in consistent cash flows and profitability, and management's commitment to financial discipline.
Delivering more value to the business through
performance measurement and improved decision
support is the top priority for the finance function
through 2020. Among senior finance professionals
participating in the 2014 EY Global Insurance CFO
Survey, 71% indicated that “being a better business
partner” ranked among their top three priorities,
with 35% placing this as number one.
2017 Linedata Global Asset Management Survey Linedata
Asset managers, administrators embrace differentiation to navigate challenging conditions; cite political concerns and ongoing regulatory constraints
• Seventh annual survey of global asset management industry highlights socio-economic and political concerns
• Disruption more likely to come from external factors rather than industry trends
• Differentiation now a major concern for respondents
• MiFID II the most important regulation over the next three years
Impact on Employee Outreach and People Processes | EY IndiaEYIndia1
The document summarizes how insurance companies in India have adapted to employees working from home during the COVID-19 pandemic. It discusses how companies ensured their employees had proper digital infrastructure to work remotely, such as providing laptops, internet access, and virtual meeting tools. It also addresses the impact on employee outreach and processes, including initiatives to check on employee well-being, provide training, and boost morale. While productivity has increased in some cases, challenges include fear and anxiety from the pandemic situation as well as ensuring data security and productivity with remote work.
This document provides an initial analysis of Futu Holdings Limited (FHL.US) by James Yeh on March 15, 2019. It discusses Futu's investment thesis, business model, competitive landscape, customer acquisition strategy, and financial projections. The key points are:
1) Futu has a multi-year compounding opportunity in China's large and expanding online securities trading market by providing a scalable and reinforcing brokerage platform.
2) Futu's business model focuses on acquiring new clients and increasing assets from existing clients through its technology-driven and product-focused approach.
3) Futu faces risks from competition, execution challenges, policy/regulation changes, and macroeconomic factors that could
PwC Entertainment, media and communications deal insightsQ3 2015PwC
Deal volumes continue to stay the course with deal values declining in the absence of cable megadeals. PwC provides a summary of third quarter 2015 deal activity, megadeal activity and an outlook for key sectors.
Venture capital investing in 2005 was steady at $21.7 billion, matching the 2004 level and holding gains from previous years. Later stage deals and first-time deals both reached four-year highs, while emerging sectors like wireless saw increases, though still small overall. The venture capital environment remains receptive to entrepreneurs, with solid traditional investing complementing growth in promising new areas.
EO Briefing 2015 is structured in three chapters. The first chapter examines the impact of digital technologies, particularly the Internet of Things (IoT) on business. The IoT presents an array of challenges and new revenue possibilities but the question is which companies will be able to capitalise on this opportunity. This an especially crucial question as C-suite executives see competition rising sharply in 2015.
The document summarizes 9 key drivers of change that will impact the global wealth and asset management industry in the coming year. The drivers include: 1) Increased regulation and transparency requirements in Europe and the US, 2) Accelerated M&A activity as firms seek to grow rapidly, 3) Cooling spending on private wealth management growth and a refocus on organic growth, 4) Increased scrutiny of pension funding gaps, 5) Continued growth of robo-advisors and automated platforms, 6) Continued dominance of ETFs over other investment products, 7) Persistence of fixed income assets despite predictions of demise, 8) Limited growth expected in emerging markets, and 9) Accelerated share buybacks by publicly
International Capital Standard (ICS) Background PwC
PwC US risk & capital management leader Henry Essert and PwC global insurance regulatory director Ed Barron
recently sat down to discuss the proposed International Capital Standards (ICS) for insurers. They addressed at
length what the ICS is and what it could mean to insurers. The following pages contain their thoughts on the
standard, as well as some background information on capital management and related issues in the
insurance industry.
The document provides an outlook on the investment grade semiconductor sector for 2019. It finds that credit quality remains robust due to competitive advantages that drive strong returns and cash flow. While growth is expected to slow in 2019, margins may continue to expand. Key risks include potential impacts from US-China trade conflicts and mergers & acquisitions. Overall, the outlook maintains stable ratings for six of seven covered issuers, with positive outlook for one, as demand from new end uses supports long-term growth despite some near-term headwinds.
Mercer Capital's Value Focus: FinTech Industry | First Quarter 2015Mercer Capital
The document provides an overview and analysis of the FinTech industry for the first quarter of 2015. Some key points:
- FinTech outperformed broader markets in Q1 as investor interest remained high. Valuation multiples continued to expand relative to historical levels.
- 18 FinTech IPOs occurred in 2014-Q1 2015, with a median stock price return of 12% since IPO. Eight IPOs had market caps over $1 billion.
- FinTech M&A activity was flat in Q1 2015 vs Q1 2014, but deal values increased significantly, led by several billion-dollar deals in payments and healthcare software.
- The document analyzes financial performance, margins, and valuation metrics for
2014 Property & Casualty Insurance Industry Outlook: Innovation leading the wayDeloitte United States
On the surface the property and casualty sector appears to be doing quite well, but running an insurance carrier is rarely smooth sailing. The last few years have been particularly difficult for those occupying C-Suite positions, as more fundamental issues are threatening not only short-term results on their balance sheets, but challenging the long-term viability of their operating models as well.
For example, a growing number of insurers are facing significant organizational disruption. Many have made large-scale investments in technology, replacing core systems for claims, policy administration and finance. Their chief challenge now is how to effectively leverage the new systems they’ve put in place and maintain their momentum with additional innovations in personnel, products and culture.
Additionally, ongoing political gridlock in Washington could undermine an already unsteady economic recovery. Not to mention regulatory uncertainty that makes it difficult for carriers to plan ahead and determine operational priorities.
Innovation may ultimately be the key to keep insurers growing regardless of shifting economic and insurance market conditions, as they devise ways to thwart ongoing and emerging competitive threats as well as capitalize on new opportunities.
For more - visit http://www.deloitte.com/view/en_US/us/Industries/Insurance-Financial-Services/039bdd0819e23410VgnVCM3000003456f70aRCRD.htm
In 2013, the ban on general solicitation of accredited investors was lifted, causing the largest change to securities laws in decades. While everyone from startups to hedge funds will enjoy new liberties in investor marketing and outreach campaigns, it’s critical that the new rules are followed to a T, eliminating the chance for exemption rescission.
Insurers are continuing to face marked changes in what customers expect in terms of products and service, how they obtain and utilize the information that informs business decisions, and their underlying business and operating models. Top Insurance Industry Issues in 2016 describes in detail the internal and external changes insurers face and how they can gain a competitive advantage..
Basel III Mortgages: Australia - Key Themes and Strategic Approachaccenture
The point of view explores the new Basel III reforms and the significant impact they will have on data and systems in Australia. The piece offers a strategic approach to Basel III Mortgages and outlines five key questions Australia’s banks need to ask as they prepare for additional regulatory obligations.
18th Annual Global CEO Survey - Technology industry key findingsPwC
Technology industry CEOs are optimistic about growth prospects. Most see more opportunities than threats and expect revenue growth over the next three years. However, they also face challenges from disruption, convergence, and new competitors emerging from other industries like professional services and media. To succeed in this environment, CEOs see the need to invest in digital technologies, form new partnerships including with competitors, and demand a more diverse talent pool with broader skills.
The document discusses IBM enhancing its corporate performance management software solutions - Cognos TM1 and Cognos 8 Controller. The upgrades aim to improve analytic capabilities and budget consolidation. This will help organizations make better and faster decisions across departments by extending analytics. The enhancements are meant to reduce planning and reporting cycles. Adopting such solutions could help companies drive smarter decisions for better outcomes through predictive analytics compared to using spreadsheets. IBM sees big potential in business analytics and is focused on building capabilities around it.
Persistent Systems is a global company specialized in software product and technology services. It is an Outsourced Product Development specialty company, offering the customers the benefits of offshore delivery. Persistent has customers spread across North America, Europe, and Asia.
When it comes to scrutinizing costs, most insurance companies can say “Been there, done that. Got the t-shirt.” Managers are familiar with the refrain from above to trim here and cut there. The typical result is flirtation with the latest management trends like lean, outsourcing and offshoring, and others. However, the results tend to be the same. Budgets reflect last year’s spend plus or minus a couple of percent in the same places.
The document provides an overview of the impact of COVID-19 on the FinTech industry. It summarizes that FinTech stocks have declined similarly to the overall market decline but have historically outperformed in past downturns. Public company valuations have fallen significantly from peaks. The economic impact of COVID-19 has been more severe than past recessions based on a surge in unemployment claims.
Verisk Analytics operates in the business services industry, providing data and decision support solutions. It has established leading positions in sub-markets primarily serving insurance, financial services, and energy industries. This is due to proprietary databases that are hard for competitors to replicate and customers to switch from, and high customer retention driven by sticky relationships. The internal rating on Verisk is higher than external ratings due to its strong competitive position resulting in consistent cash flows and profitability, and management's commitment to financial discipline.
Delivering more value to the business through
performance measurement and improved decision
support is the top priority for the finance function
through 2020. Among senior finance professionals
participating in the 2014 EY Global Insurance CFO
Survey, 71% indicated that “being a better business
partner” ranked among their top three priorities,
with 35% placing this as number one.
2017 Linedata Global Asset Management Survey Linedata
Asset managers, administrators embrace differentiation to navigate challenging conditions; cite political concerns and ongoing regulatory constraints
• Seventh annual survey of global asset management industry highlights socio-economic and political concerns
• Disruption more likely to come from external factors rather than industry trends
• Differentiation now a major concern for respondents
• MiFID II the most important regulation over the next three years
Impact on Employee Outreach and People Processes | EY IndiaEYIndia1
The document summarizes how insurance companies in India have adapted to employees working from home during the COVID-19 pandemic. It discusses how companies ensured their employees had proper digital infrastructure to work remotely, such as providing laptops, internet access, and virtual meeting tools. It also addresses the impact on employee outreach and processes, including initiatives to check on employee well-being, provide training, and boost morale. While productivity has increased in some cases, challenges include fear and anxiety from the pandemic situation as well as ensuring data security and productivity with remote work.
This document provides an initial analysis of Futu Holdings Limited (FHL.US) by James Yeh on March 15, 2019. It discusses Futu's investment thesis, business model, competitive landscape, customer acquisition strategy, and financial projections. The key points are:
1) Futu has a multi-year compounding opportunity in China's large and expanding online securities trading market by providing a scalable and reinforcing brokerage platform.
2) Futu's business model focuses on acquiring new clients and increasing assets from existing clients through its technology-driven and product-focused approach.
3) Futu faces risks from competition, execution challenges, policy/regulation changes, and macroeconomic factors that could
PwC Entertainment, media and communications deal insightsQ3 2015PwC
Deal volumes continue to stay the course with deal values declining in the absence of cable megadeals. PwC provides a summary of third quarter 2015 deal activity, megadeal activity and an outlook for key sectors.
Venture capital investing in 2005 was steady at $21.7 billion, matching the 2004 level and holding gains from previous years. Later stage deals and first-time deals both reached four-year highs, while emerging sectors like wireless saw increases, though still small overall. The venture capital environment remains receptive to entrepreneurs, with solid traditional investing complementing growth in promising new areas.
EO Briefing 2015 is structured in three chapters. The first chapter examines the impact of digital technologies, particularly the Internet of Things (IoT) on business. The IoT presents an array of challenges and new revenue possibilities but the question is which companies will be able to capitalise on this opportunity. This an especially crucial question as C-suite executives see competition rising sharply in 2015.
The document summarizes 9 key drivers of change that will impact the global wealth and asset management industry in the coming year. The drivers include: 1) Increased regulation and transparency requirements in Europe and the US, 2) Accelerated M&A activity as firms seek to grow rapidly, 3) Cooling spending on private wealth management growth and a refocus on organic growth, 4) Increased scrutiny of pension funding gaps, 5) Continued growth of robo-advisors and automated platforms, 6) Continued dominance of ETFs over other investment products, 7) Persistence of fixed income assets despite predictions of demise, 8) Limited growth expected in emerging markets, and 9) Accelerated share buybacks by publicly
This document recommends investing in "new tech" companies focused on security, mobile/social, analytics, and cloud (SMAC) technologies. These areas are seeing high spending priorities and growth. Specifically, it suggests favoring security companies with strong fundamentals in cloud computing and mobile interfaces. Key risks include a sell-off in growth stocks or reduced technology spending from economic concerns.
Big Tech winners in 2015 can be identified as FANG (Facebook/Amazon/Netflix/Google) - The new Morgan Stanley Tech theme for 2016: think SMAC (Security/Mobile/Analytics/Cloud)
The document discusses the changing demographics and economic drivers in mainland China and the implications for businesses and their talent strategies. Specifically:
- Mainland China is witnessing shifts including an aging workforce, slowing economic growth rates, and a diminishing workforce due to the one-child policy. This will impact the available talent pool for companies.
- Rapid urbanization and rising wages are drawing talent away from major business centers to second-tier cities. Companies must adapt their talent strategies to changing regional dynamics.
- To attract and retain top talent amid these changes, companies need to closely link rewards to business strategy and focus on differentiation, perceived value of compensation, and cultivating a high-performance culture.
Accenture 2015 Global Structural Reform Studyaccenture
Accenture’s 2015 Global Structural Reform Study – based on a survey of 131 banking, insurance and capital markets institutions across regions – confirms that, while institutions are investing in their response to Global Structural Reform (GSR), their plans still appear focused on meeting regulatory demands alone, rather than accounting for the more strategic implications of structural reform.
Highlights from the study's conclusions include:
- GSR is re-writing the financial services landscape
- Investment is clear, but strategy less so
- Three suggested principles for unlocking the potential of GSR
Download the report and visit https://www.accenture.com/accenture-2015-global-structural-reform-study.aspx to learn more.
Accenture 2015 Global Structural Reform Study: Unlocking the Potential of Glo...Accenture Insurance
As they reshape the financial services industry in light of the 2007-2008 financial crisis, global regulators have introduced a series of structural reform regulations to help build resilience. Global Structural Reform (GSR) is creating a new financial services ecosystem for institutions.
Accenture’s 2015 Global Structural Reform Study finds senior management working to thrive in what amounts to an all-new financial services landscape. They are investing effort and funds in their response to GSR, but their focus is on meeting regulatory demands. While that represents a good starting point, our study finds institutions might be missing out when it comes to meeting the strategic implications of reform and using reform as an opportunity to reposition the organization for sustainable growth
SEA Group reported strong financial results for Q3 FY21, with 122% revenue growth. The CEO emphasized growing Free Fire's user base and onboarding more MSMEs to Shopee across countries. However, SEA Group's share price has dropped over 30% recently due to market volatility. The report analyzes SEA Group's gaming and e-commerce industries, projects financial growth drivers, and conducts a valuation analysis to determine if SEA Group is attractive for investment.
The incorporation of innovation on organizations is simultaneously a necessity and a risk which requires substantial changed in today’s organizations in order for those to achieve success and which frequently means reinventing their business models, hence, embracing the inevitable change.
Optimizing Voluntary Strategy via Realigned TPA Engagement and Targeted Inves...Cognizant
For group insurers with voluntary offerings, working with third-party administrators (TPAs) is a double edged sword, one fraught with problems of costs, up- and cross-selling, inadequate data, decoupling challenges and more; IT modernization programs are problematic as well. We offer a framework that enables companies to align their voluntary and TPA strategies.
Motorsports Due diligence - Case Study (MC[CO] LabsMC[CO] Labs
The strategic due diligence focused on sizing the upside opportunity for a motorsports business from direct-to-consumer streaming, potential expansion of media rights revenue, and a new sponsorship strategy. MC[CO] Labs analyzed sports market trends, conducted interviews, and developed three-year revenue forecasts to model the commercial valuation. Their work provided insights into key growth drivers and validated management's strategic plan, informing the client's investment decision-making.
it & Economic Performance a Critical Review of the Empirical DataWaqas Tariq
The present study undertakes a critical review of the research around the multi-significant issue of the correlation between the IT investments and the economic performance to both micro and macroeconomic level. The aim of this study is to shed light on the interaction of IT with the economy, at corporate, industry and national level and document it¢ s contribution to productivity and therefore to economic growth. My conclusion is that there is a positive effect of IT investments to both the above economic indicators in all aspects, but is something that needs further research so as to find a more clear and risk adjusted relation.
Private Equity: Powering Alpha Via AI, Analytics & AutomationCognizant
Embedding a data-driven approach that relies on the latest digital technologies, tools and techniques can help to increase the value of portfolio companies and enable them to transform – which can be critical while formulating exit strategies.
NEC Public Safety | Facing the Odds in Gaming IndustryNEC Public Safety
For casino gaming operators, facial recognition is a tool that can empower them to transform how they operate and find new answers in a complex environment. This paper aims to present how the technology can answer some the most pressing challenges facing a global casino gaming market. Brought to you by NEC. To find out more, do visit http://www.nec.com/safety
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Strategic Performance Management - Stack ranking, gaming industry and Balanced Scorecard
1. 1
Group Members:
Marco Cersosimo 773626
Margherita Greppi 773656
Bingkun Ge 661363
Linghui Zhou 677598
Millenium Leisure Case Study
1. Relative Performance Evaluation
Definition
The so called stack-ranking method, otherwise known as ‘rank and yank’, involves
evaluating the performance of employees based on their relative contribution to the
overall results. The evaluation may occur at different levels of the firm and may be limited
to certain reference groups identified by the management. The use of ranking involves a
comparison between employees at the same hierarchical level and may occur under the
same or across divisions (Giumetti, Schroeder & Switzer, 2015). Relative performance is
then applied to a bell curve, and those that are at the bottom end are either terminated or
invited to undertake some training, while employees at the top are rewarded by receiving
bonuses, promotions or recognition (Grote, 2005).
The literature review has allowed us to identify the pros and cons of stack-ranking,
summarised in the following table:
3. 3
Feasibility
In the light of Millenium Leisure’s objectives and culture, we believe that stack-ranking
would not be an effective performance appraisal system. The main reason is linked to its
potential downturns on teamwork and innovation, key drivers of competitive advantage in
this industry. RPE in fact may be an obstacle for innovative ideas to thrive in the company
(Yeh, 2015) and has therefore proved to be unsuitable for dynamic, knowledge-driven
environments (Garcia & Tor, 2007). Innovation is a collaborative process to deliver greater
value and with RPE employees would not be encouraged to work together to achieve
common goals, focusing more on individual performance. If employees don’t have
incentives to share and collaborate, Millenium Leisure may find difficulty finding and
exploiting new opportunities to respond to the growing competitive pressure and
changes in customer needs.
The use of RPE across divisions by using key financial metrics as a basis for comparison
would enhance competition across divisions, that could affect corporate performance in
4. 4
the long run. The current objective is to dedicate resources to growth, rather than to
identify the best and worst performers. Furthermore, since the volatility of the industry is
moderately low (IBISWorld, 2015), the advantage of RPE to absorb external,
unpredictable shocks would not be justifiable.
2. Gaming in Australia - Industry Analysis
Market share concentration
Considering the international gaming industry, the USA has always dominated the market,
but recently the competition with the Asian Pacific area has become stronger and this
trend is expected to continue. In particular, from 2008 the chinese city of Macau has been
nominated the “Monte Carlo of the Orient”, replacing Las Vegas as the new leader within
the gaming industry. Singapore is now holding the third position within the market.
Nevertheless, the rise of the Asian companies in the gaming industry has been slowed
down by the regulations imposed by the Chinese Government to strictly monitor players.
The Australian gaming industry instead is highly concentrated since there are two major
players and the others split the rest of the market. This phenomenon is the consequence
of high barriers to entry in this business. However, some changes have occurred since
the government has modified the regulation in 2012 and now venue-operators can
operate in the market as well.
5. 5
(Source: IBIS World Industry Report C2499b, January 2015, Nick Flores)
Barriers to entry
• Government regulations, requirements and licenses specific for each jurisdiction;
• Ongoing investments in R&D, necessary to stay in this highly competitive and
capital intensive market, especially since the expansion of online gambling has
occurred;
• Time needed to accumulate useful know-how, build networks and create a strong
long-term reputation;
• The Australian gaming industry has recently entered in a stagnant phase, making
the segment less attractive for potential operators;
• Since the market is highly concentrated, buyers and suppliers have a high degree
of bargaining power.
Financial analysis
The global gaming industry and online gambling are expected to grow at a CAGR of
8.96% within the next five years. In the USA, expenditures on gaming machines are
forecasted to increase 5% annually. The Asian Pacific market is expected to grow at an
ever faster rate, especially Macau and Singapore. The Asian Pacific area will therefore
count for the 43.4% of the total global market (PwC, 2015)
6. 6
The Australian gaming industry on the other hand has demonstrated in the past to be
profitable, with high revenues, employment rate and gaming expenditure per capita.
However, the industry has been negatively affected by the global financial crisis and
clients are now betting and investing less money due to the rise of interest rates. The
gaming sector has been in a declining phase over the past five years and empirical data
show that the annual growth from 2010 to 2015 was -0.7% and is expected to stay the
same in the next five years (IBISWorld, 2015).
Law/Regulation
The gaming industry has been always regulated at state and territory level rather than by
the Commonwealth (Productivity Commission, 2010). One of the biggest regulations in
the gaming industry was the liberalisation of electronic gaming machines (EGMs). Both
federal and state government recognise they need to control the spread of EGMs due to
increasing concern (Bank, 2003). As a consequence, the Productivity Commission
requires that private organisations who want to introduce or install additional EGMs in
their venues must demonstrate Social Impact Assessment statements (SIAs).
Online gaming is the new trend and is highly regulated by the Interactive Gambling Act
2001 in Australia, which makes it an offence to provide or advertise interactive gambling
to Australians. Although on the global level online gaming still remains an illegal activity, in
many countries the trend has seen an increase of liberalization recently (KPMG
International, 2010)
Channels
Minister for Gaming places a range of regulations and restrictions to the number of
machines in approved licensed venues, such as clubs and hotels (Victorian Commission
for Gambling and Liquor Regulation, 2012). Therefore, there is increasing competition
among the operators to get access to gaming venues. In addition, Australian
Government’s highly restricted regulation has lead companies to seek for profitable
7. 7
opportunities in the international market, offshoring activities for more convenient
alternatives.
Innovation
Recently, the biggest change in the gaming industry is technology, more specifically data
collecting technology to gather complete and valid data for monitoring purposes. With
the old gaming operating systems reaching the end of their life cycle, more knowledge
intensive terminals, such as electronic gaming machines and online gaming, are gaining
popularity.
Two challenges associated with technological innovation lie in accessing and controlling
data, since the monitoring of the operations plays a very important role in maintaining
data security and integrity. As Tabcorp Group mentioned in its 2015 annual report, the
group’s businesses highly rely on the successful control of technology security risks, to
avoid threats such as cyber attacks, that would affect the overall performance of the firm.
Part of the monitoring system developed by the Productivity Commission (1999) is
Productivity Commission’s Methodological Approach, which quantifies the social benefits
and costs associated with legal gambling, using consumer surplus to gauge gambling’s
economic effects.
8. 8
3. Balanced Scorecard
The measures identified in the Balanced Scorecard have been selected by considering
the divisional manager’s span of control and accountability. The interconnected measures
relate to the company’s strategy, its value system and the key drivers of success in the
gaming industry
9. 9
People and leadership
Employee training is fundamental to promote a positive learning environment inside the
firm. Enhancing worker’s hard and soft skills will boost their productivity and efficiency,
that will be positively reflected in the quality of organisational processes. Ahire and
Dreyfus (2000) argue that managing quality requires employees to be able to measure
and exploit data efficiently. Firms that heavily rely on innovation must in fact provide their
staff access to valuable and specific know-how. Training can have a positive impact on
employee’s attachment, satisfaction and commitment to the firm (Kaynak, 2003).
For the gaming division, the engagement level of employees is a key contributor to
organisational success. Roof, R. (2015) denoted that a highly engaged workforce is often
linked with enhanced organisational payoffs, such as improved customer service and
efficiency. To better understand its workforce engagement, Millenium Leisures should
adopt satisfaction surveys. In response to the survey’s findings, employees are required
to engage in seminars, training and group meetings. More collaboration and satisfaction
can lead to higher commitment, that will lead to an increase of the process quality.
The fortitude to invest the necessary resources in innovation can be measured by the way
time is managed inside a company. As Kim & Yoon (2015) point out, the degree to which
an employee perceives senior managers’ transformational leadership is positively related
to the degree to which the employee perceives a culture of innovation. By emphasising
the importance of innovation from the executive’s perspective will allow it to be
emphasised at the organisational level as well. A strong innovative culture will help ML
10. 10
increase the success rate of new products and the revenues generated by them, hence
improve the process quality and gain larger market share.
Organisation
CSR is the set of intangible assets that involve taking actions that go beyond legal
requirements by taking social expectations into consideration. One of the possible ways
to measure CSR is the number of legal instances presented against the company for
misconduct on an annual basis. ML’s objective would be to minimise them to reinforce
brand image and reputation, and achieve greater integrity, legitimacy and fairness. This
would lead to a higher retention of existing customers as well as attract new ones,
therefore expanding market share.
An empirical study conducted by Vong and Wonn (2013) in the gaming industry
showed how Corporate Social Performance (CSP) can positively affect financial and
market performance by increasing the transparency of business operations to gain higher
trust. This will also attract valuable human resources, therefore thriving innovation and
reducing recruiting and training costs.
Process quality can be measured by using the throughput rate of successful projects,
calculated as the percentage out of all the projects that are implemented by the firm on
an annual basis. This measure captures both the efficiency and effectiveness of the
internal processes that are involved in delivering innovation to the market, which is a key
driver of success in this industry. We linked employee engagement and training to this
measure because higher commitment and more skillful staff can contribute to deliver
more successful products as a result of a collaborative process.
11. 11
Firms in this industry have shifted their focus to high value adding activities, therefore
outsourcing manufacturing. This carries the need to constantly innovate to set industry
standards and be leaders in the market. The attention has shifted to the design and
development of software and hardware (IBISWorld, 2015), and will require an increasing
amount of technological know-how. By increasing capital expenditure in R&D, the firm
can design products that are more likely to succeed in the market because they better
respond to customer needs. A comparison needs to be made with other competitors to
set industry level benchmarks.
Customer and growth perspective
Since the gaming industry is highly competitive and regulated both domestically and
internationally, one of the key objectives set by the gaming division is to increase market
share, a key driver of revenue growth. Market share can be calculated as a percentage of
the total revenue of the organisation over the total industry revenue, measured on
different market segmentations (by products, geographic area, clients concentration) to
evaluate the relevant manager who has control over that segment. Market share is the
only measure used in our BSC that is based on the overall firm because we thought that
evaluating the divisional manager on it would enhance the goal congruence between the
division and the organisation, reducing the agency issue.
Integrity is one of the ML’s values and missions, so the firm is committed to build long-
term relationships with its customers in an environment of responsible gambling. To
12. 12
achieve this organisational objective, managers are required to increase customer loyalty
at the divisional level. This goal can be calculated as the total number of active customers
on an annual basis, through reward card programs or membership systems. If the number
of active customers expands, the revenues and market share is expected to increase
proportionately. This measurement can be used to collect useful data for monitoring
purposes and infer valuable information on the company’s underlying commitment to
responsible gambling.
The recent changes in the segment’s structure and regulation has significantly increased
the competition among gaming venues. Therefore, companies need to seek for innovative
solutions. Since customers constantly look for new gaming experiences, innovation is
important to attract new customers and retain existing ones. By frequently launching
successful new products, customer’s gaming experience will be enriched and the
perceived service quality will be enhanced. The success of new products launched can
be measured by the percentage of revenues that they generate over total divisional
income. Evaluating managers on this measure encourages them to focus more on
product innovation, which is a divisional and organisational objective. By doing this, the
number of active players and the customer retention rate will increase, therefore
maximising the investment return from gaming venues.
Financial perspective
Since the market is highly concentrated and the industry is in its phase of stagnation
because of the limiting regulatory framework, national players are seeking to invest
abroad to increase and diversify their revenue streams. The Interactive Gambling Act of
2001 made it illegal for operators to offer ‘real-money’ online interactive gambling to
residents in Australia and banned advertising. However, Australian operators are allowed
13. 13
to offer their gambling services to gamblers outside national boundaries. It is therefore
important for ML to seek for opportunities in expanding markets to pursue a sustainable
leadership and international presence over time by increasing market share. ML’s
strategy to internationalise is coherently reflected in this measure and can be used to
evaluate the efforts of the divisional manager to expand the unit’s horizons.
Divisional EBITDA adequately synthesizes the core profitability of the unit, since it is the
income free from interests, taxes, amortization and depreciation. The divisional managers
evaluated on this financial measure are therefore incentivised to increase the operating
cash flow. This helps the unit to prepare for the structural changes that the new licensing
laws and government regulations will require. Increasing the retention rate and launching
successful and profitable products can benefit the division’s overall financial health.
ROI is an effective measure to evaluate ML’s divisional managers since increasing capital
investments, maximising their return and improving the overall performance of the
organisation are some of the priorities set by ML. Furthermore, if the divisional managers’
reward system is based on the ROI, they will be more encouraged to increase this
measure. High returns on investment can solidify the firm’s position in the market and
help retain and attract clients.
Since investments in R&D deliver their benefits in the long run, it’s important to
consider ROI over a long-term (approximately 2 or 3 years) otherwise managers could be
encouraged to give up potentially profitable investments because they could negatively
affect the divisional profitability in the short-term. ML has in fact forecasted to achieve the
organisational growth objective over a long-term.
14. 14
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