Teradata 2014, from predictive analytics to best in class self correcting crowd analytics and business intelligence

SIMMETHOD
From Real Time Analytics To Self-
Correcting Crowd Analytics And
C-Level Sensors
Teradata’s 2014 Case Study
SIMMETHOD’s C-Level Risk And
Opportunities Alerts.
8/13/2014 1
WWW.SIMMETHOD.BLOGSPOT.COM

SIMMETHOD
Risk and Opportunity Alerts
8/13/2014 WWW.SIMMETHOD.BLOGSPOT.COM 2

SIMMETHOD Strategy & Execution
Performance Predictive Index
On April 2, Tiernan Ray wrote on Barron’s
Tech Trader Daily:
• “A bit of debate is underway about what
to expect from enterprise Big Data
technology provider Teradata amidst
rising competition from open-source
software Hadoop”
8/13/2014 3WWW.SIMMETHOD.BLOGSPOT.COM

• “Summit Research’s Srini Nandury
reiterates a Buy rating, and a $58 price
target, writing that the main issue for
the company has been a slowdown in IT
spending, not Hadoop, and that things
are about to turn around for the
company”

• Cowen & Co’s Peter Goldmacher
reiterates an underperform rating on
Teradata shares, writing that Q1 results
on May 1st may best street expectations,
but that the rest of the year may
disappoint”

SIMMETHOD
• Is Teradata’s future risk and
performance predictable based
on the SIMMETHOD Strategy
and Execution Performance
Predictive Index and risk and
opportunities alerts?

The Way We Measure Corporate
Risk and Performance Is Broken
Why do
Businesses fail
or fail to
perform?
Blockbuster
Borders
Circuit City
Mervyns
Wachovia
Washington
Mutual
Linen n’
Things

The CEO Lament in the Business
Analytics Market
• We did not see it coming. All my
products and data analytics
pointed North while my business
as a whole (in comparison to
new competitors and the Best In
Class in multiple
industries) pointed South.

How to holistically
measure strategy and
execution and
competitive advantage?

The SIMMETHOD Algorithm
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 and
the Best In Class
Competitors’
strategy &
execution

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
Convert data
into indices
• Strategy & Execution Performance Predictive
Indices are used to select Best In Class companies
across a range of industries within the 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
Calculate Best In
Class profiles
and risk alerts

SIMMETHOD Strategy and Execution
• What is Teradata’s position
within the 2014 SIMMETHOD
Strategy & Execution
League Table?
8/13/2014 12

SIMMETHOD’s C-Level Trends 2012-2014
Teradata and the Best-In-Class
The following C-Level indices show
Teradata’s ability to:
• Strategize and execute against the
SIMMETHOD Best-In-Class,
• Compete against the Best-In-Class, current
and future competitors
and are leading indicators of future business
opportunities, risk and performance.

SIMMETHOD
Strategy & Execution Performance Predictive Index
0
10
20
30
40
50
60
70
80
SIMMETHOD
Management
Controllable
Resources Index
SIMMETHOD
Strategy &
Execution
Performance
Predictive Index
8/13/2014 14

SIMMETHOD
-10
-5
0
5
10
15
20
25
30
35
SIMMETHOD
Management
Controllable
Resources Index
SIMMETHOD
Strategy &
Execution
Performance
Predictive Index
8/13/2014 15
Teradata’s competitive position and
management’s effectiveness within the
SIMMETHOD business league table

SIMMETHOD
-30
-25
-20
-15
-10
-5
0
SIMMETHOD
Management
Controllable Resources
Index
SIMMETHOD Strategy
& Execution
Performance Predictive
Index
8/13/2014 16

SIMMETHOD
-60
-50
-40
-30
-20
-10
0
AT&T
Atos
ThomasCook
Adecco
GrupoTelevisa
FidelityNational…
ComputerSciences
Sodexco
Verizoncomm
AmericanExpress
TimeWarnerCable
CompalElecronics
HP
Expedia
Capgemini
Comcast
Libertyinteractive
Telefonica
VeriskAnalytics
Cablevision
Centurylink
Innolux
SIMMETHOD Management
Controllable Resources Index
SIMMETHOD Strategy &
Execution Performance
Predictive Index
8/13/2014 17

SIMMETHOD
Teradata’s 2012 to 2014 trend across the
indices of the SIMMETHOD Best In Class
showing:
• Competitive strengths,
• Competitive weaknesses,
• Risk levels and
• Opportunities for improvement in order to
become Best In Class and fend off current
and future competitors
8/13/2014 18

SIMMETHOD
2012 to 2014 Business and Industry Trends
-15
-10
-5
0
5
10
15
20
25
30
35
40
Teradata 2012
Teradata 2013
Teradata 2014
Teradata’s improvements on its Sales and
Cash/Debt indices have positively influenced
its 2014 Performance Predictive Index

SIMMETHOD
2012 to 2014 Business and Industry Trends
-15
-10
-5
0
5
10
15
20
25
30
35
40
Teradata 2012
Teradata 2013
Teradata 2014
2014 improvement on its Performance Predictive
Index driven by its Sales , Cash/Debt and
Management Controllable Resources indices

SIMMETHOD
Trends against the SIMMETHOD Best In Class
Your level of risk increases when:
• Your data points North and the SIMMETHOD
indices point South, or
• Your gap to your peers and the Best In Class is
widening or
• The score of your Strategy & Execution
Performance Predictive Index is not
supported by all the other indices
under management control.
8/13/2014
21

SIMMETHOD’s C-Level Trends 2012-2014
Teradata and the Best-In-Class
• When the Best-In-Class and your
SIMMETHOD C-Level indices are
moving in opposite directions, your
ability to compete weakens in
proportion to your widening
gap to the Best-In-Class.

SIMMETHOD
0
5
10
15
20
25
30
35
40
2012 2013 2014
Average B-I-C SIMMETHOD
Strategy/ Execution Performance
Predictive Index
Teradata SIMMETHOD Strategy/
Execution Performance Predictive
index

SIMMETHOD
0
5
10
15
20
25
30
35
40
2012 2013 2014
Average B-I-C SIMMETHOD
Strategy/ Execution
Teradata SIMMETHOD Strategy/
Execution Performance
Predictive index
Trending up but the gap to the Best In
Class average is widening

SIMMETHOD
-10
-5
0
5
10
15
20
25
2012 2013 2014
Avg. B-I-C SIMMETHOD
Management Controllable
Resources Index
Teradata SIMMETHOD
Resources Index
Teradata has reverted a negative trend and
improved its management effectiveness in
relation to peers and the B-I-C

SIMMETHOD
-10
-5
0
5
10
15
20
25
2012 2013 2014
Resources Index
Teradata SIMMETHOD
Resources Index
Teradata’s Management Controllable
Resources Index is improving and the gap
to the B-I-C is narrowing

SIMMETHOD
0
2
4
6
8
10
12
14
16
18
2012 2013 2014
Avg. B-I-C SIMMETHOD Value
Creation Index
Teradata SIMMETHOD Value
Creation Index

SIMMETHOD
0
2
4
6
8
10
12
14
16
18
2012 2013 2014
Avg. B-I-C SIMMETHOD Value
Creation Index
Teradata SIMMETHOD Value
Creation IndexTeradata is not able to unlock the
same value from its resources as
the average Best In Class and the
gap is widening

SIMMETHOD
-12
-10
-8
-6
-4
-2
0
2
4
6
8
10
2012 2013 2014
Cash/Debt Index
Teradata SIMMETHOD
Cash/ Debt IndexExcellent reversal
of trend and B-I-C
result for
Teradata’s
Cash/Debt Index

SIMMETHOD
-12
-10
-8
-6
-4
-2
0
2
4
6
8
10
2012 2013 2014
Cash/Debt Index
Teradata SIMMETHOD Cash/
Debt Index
Strengthened competitive position and reduced
level of risk

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?

Is there a disconnect between your raw data
and your SIMMETHOD indices?
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

SIMMETHOD
-2
-1
-1
0
1
1
2
2
3
2012 2013 2014
Avg. B-I-C SIMMETHOD Sales
Index
Teradata SIMMETHOD Sales
Index
Excellent Sales Index result. Reversal of negative
trend plus narrowing of gap to the average B-I-C

SIMMETHOD
-2
-1
-1
0
1
1
2
2
3
2012 2013 2014
Avg. B-I-C SIMMETHOD Sales
Index
Teradata SIMMETHOD Sales
Index
Narrowing gap to the SIMMETHOD B-I-C

SIMMETHOD
-2.5
-2
-1.5
-1
-0.5
0
0.5
1
1.5
2
2.5
2012 2013 2014
Avg. B-I-C Overheads Index
Teradata SIMMETHOD Overheads
Index

SIMMETHOD
-2.5
-2
-1.5
-1
-0.5
0
0.5
1
1.5
2
2.5
2012 2013 2014
Avg. B-I-C Overheads Index
Teradata SIMMETHOD
Overheads Index
Widening gap to the
B-I-C average

SIMMETHOD
-3
-2
-1
0
1
2
3
4
2012 2013 2014
Avg. B-I-C SIMMETHOD HR Index
Teradata SIMMETHOD HR Index
The contribution of HR to business
value is diminishing in relation to
peers and the SIMMETHOD B-I-C

SIMMETHOD
-3
-2
-1
0
1
2
3
4
2012 2013 2014
Avg. B-I-C SIMMETHOD HR Index
Teradata SIMMETHOD HR Index

Teradata’s 2013-2014 Gap to the
SIMMETHOD Best In Class Profile
• Is Teradata’s gap to the
SIMMETHOD Best In Class
profile narrowing or
widening?

Is there a disconnect between your SIMMETHOD
indices and your gap to the Best In Class profile?
• When your SIMMETHOD indices are
trending up and your gap to the
SIMMETHOD Best In Class profile is
trending down, your C-Level sensors
are presenting you with specific risk
and opportunity alerts.
Why?

Is there a disconnect between your SIMMETHOD
indices and your gap to the Best In Class profile?
Unlike the SIMMETHOD indices that holistically
measure your strategy/execution or competitive
position within a business league table, your gap to
the Best In Class profiles:
Provides a specific C-Level ratio by ratio path to a
moving Best In Class performance and risk
management profile or your pre-established targets
Provides risk and opportunities alerts that can be
acted upon to reduce the gap to the Best In Class,
improve your performance , competitive advantage
and reduce your risk level

SIMMETHOD
Teradata’s 2013 Gap to the Best In Class Average
Teradata’s 2013
gap to the
SIMMETHOD
B-I-C profile
The average
sales/employee
of the B-I-C is
1.7x higher

SIMMETHOD
Teradata’s 2014
gap to the
SIMMETHOD
B-I-C profile
The average
sales/employee
of the B-I-C is
2.1x higher

SIMMETHOD
Teradata’s 2013
gap to the
SIMMETHOD
B-I-C profile
The average
profit/employee
of the B-I-C is
2.9x higher

SIMMETHOD
Teradata’s 2014
gap to the
SIMMETHOD
B-I-C profile
The average
profit/employee
of the B-I-C is
3.6x higher

SIMMETHOD
Teradata’s 2013
gap to the
SIMMETHOD
B-I-C profile
On average, the
market values the
employees of the
B-I-C is 2.5x higher

SIMMETHOD
Teradata’s 2014
gap to the
SIMMETHOD
B-I-C profile
On average, the
market values the
employees of the
B-I-C 5.3x higher

Teradata’s Gap to the SIMMETHOD Best In Class
2013 to 2014
0
1
2
3
4
5
6
Sales per employee gap to the
B-I-C profile
Profit per employee gap to the
B-I-C profile
Value per employee gap to the
B-I-C profile
2013
2014

Teradata’s Gap to the SIMMETHOD Best In Class
2013 to 2014
0
1
2
3
4
5
6
Sales per employee gap to the
B-I-C profile
Profit per employee gap to the
B-I-C profile
Value per employee gap to the
B-I-C profile
2013
2014
Widening gap to the SIMMETHOD B-I-C profile means increased risk
level and is an opportunity for improvement

SIMMETHOD
Competitive Intelligence
Competitive Intelligence showing:
• Strengths,
• Weaknesses and
• Ability to compete with existing
businesses and potential new
competitors with new business
models, cost structures, distribution
channels and products.
8/13/2014 50

SIMMETHOD Competitive Intelligence
-20 -10 0 10 20 30 40 50
Average B-I-C SIMMETHOD Strategy/ Execution Performance
Predictive Index
SAP SIMMETHOD Strategy/ Execution Performance Predictive
index
Microsoft SIMMETHOD Strategy/ Execution Performance
Predictive index
Oracle SIMMETHOD Strategy/ Execution Performance
Predictive index
IBM SIMMETHOD Strategy/ Execution Performance Predictive
index
Salesforce SIMMETHOD Strategy/ Execution Performance
Predictive Index
Vmware SIMMETHOD Strategy/ Execution Performance
Predictive Index
Teradata SIMMETHOD Strategy/ Execution Performance
Predictive index
2014
2013
2012
SIMMETHOD
Teradata’s
2014 Gap to
the Best In
Class Average

Value Creation Index
0 5 10 15 20 25 30
Avg. B-I-C SIMMETHOD Value Creation Index
SAP SIMMETHOD Value Creation Index
Microsoft SIMMETHOD Value Creation Index
Oracle SIMMETHOD Value Creation Index
IBM SIMMETHOD Value Creation Index
Salesforce SIMMETHOD Value Creation Index
Teradata SIMMETHOD Value Creation Index
Vmware SIMMETHOD Value Creation Index
2014
2013
2012

Management Controllable Resources Index
-20 -15 -10 -5 0 5 10 15 20 25
Avg. B-I-C SIMMETHOD Management Controllable
Resources Index
SAP SIMMETHOD Management Controllable Resources
index
Microsoft SIMMETHOD Management Controllable
Resources index
Oracle SIMMETHOD Management Controllable
Resources Index
IBM SIMMETHOD Management Controllable Resources
Index
Salesforce SIMMETHOD Management Controllable
Resources index
Teradata SIMMETHOD Management Controllable Index
Vmware SIMMETHOD Management Controllable
Resources index
2014
2013
2012
Gap to B-I-C’s ability to
leverage resources to
create business value

SIMMETHOD
Competitive Intelligence
-30 -20 -10 0 10 20 30 40 50
2014 Aveg. B-I-C
SAP
Microsoft
Oracle
IBM
Salesforce
Vmware
Teradata
B-I-C SIMMETHOD Minimum
Company Business Model Index
B-I-C SIMMETHOD Value Creation
Index
B-I-C SIMMETHOD Management
Controllable Resources Index
B-I-C SIMMETHOD Strategy/
Execution Performance Predictive
Index

SIMMETHOD’s Disclaimer
• The purpose of the SIMMETHOD
Strategy/Execution Performance Predictive
Index and Risk/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.

In summary, are the:
• Strategy & Execution Performance
Predictive Indices,
• Risk and opportunity alerts and
• 7 Laws of Growth and Value Creation
good leading indicators of Teradata’s
threats, opportunities, risk and
performance?

Teradata’s 2014 SIMMETHOD Risk and
Performance Summary Table
Index Value Index trend Trend vs. B-I-C 7 Laws compliance
Sales + + + +
Assets + - - -
Overheads - - - -
HR - - - -
Cash/Debt + + + +
Management
Controllable Resources
+ + + +
Minimum Company
Business Model
- - - -
Value Creation + - - -
Strategy & Execution
Performance Predictive
+ + - -
8/13/2014
60

The SIMMETHOD Algorithm and the 7
Laws of Growth and Value Creation
SIMMETHOD
7 Laws
Integration
/alignment
Benchmarking
inside/outside
your industry
Growth &
value
creation
Resource
contribution
to objectives
Predictive
performance
& risk
Averages &
positive
trends
Minimum
company
/business
model
8/13/2014
61

SIMMETHOD
2014 Industry and Business Trends
• SIMMETHOD’s Strategy & Execution
Performance Predictive Indices and trends
are not deterministic.
• Businesses that act on their SIMMETHOD
leading indicators and risk alerts can improve
their 2014 performance to
Best In Class levels.

SIMMETHOD
Risk and Opportunities Alerts
SIMMETHOD is in the top
1% of most viewed on
Slideshare and has been
“Hot” on LinkedIn,
Twitter and Facebook 50
times.

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

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