Simmethod from software as a service to outcomes as a service, oracle, sap and ibm 2017 and beyond

SIMMETHOD
From Software As A service To
Outcomes As A Service
Towards A Single Index To Measure And
Predict The Outcomes Of Your Strategy And
Execution
Rating The Management, C-Suite And Board
Of Directors Of Oracle, SAP And IBM
8/9/2016 1
www.simmethod.blogspot.com

Can industrial era metrics and KPIS
mislead you into the wrong decisions?
8/9/2016
2
IBM CFOs Insights: 53%
of CFOs think they are
not effective at
measuring and
managing performance
Tip of the iceberg Internally
focused forecasting and risk
metrics
Silos-based & unintegrated
Business Intelligence,
Predictive analytics
What sank the Titanic
and is sinking some of
our great companies?
We are the best in our
industry analytics:
Borders, Circuit City How to measure customer
value-add and the new levers
of value creation

Is Business Failure Driven By Internal Management
Decisions Or External Circumstances Beyond
Management Control?
8/9/2016
3
All analytics point North but
the business goes South
How to measure the
customer value-add of
our products and
services?
Broken Stock Market
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
outperform by new competitors?
CIO Metrics: How to
align the CIO to the
CFO and the CMO?
Quarterly product
delivery metrics
Deloitte CFO’s
Concerns: predicting
execution missteps

Why Do Businesses Succeed Or Fail?
SIMMETHOD Premise
SIMMETHOD
premise is simple:
Businesses succeed or fail primarily
due to internal decision-making
driven by erroneous analytics rather
than external circumstances beyond
management control.
12/20/2016 www.SIMMETHOD.blogspot.com 4

SIMMETHOD
•SIMMETHOD
Crowd-Sourced
Competitive Intelligence
Analytics

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
12/20/2016
www.SIMMETHOD.blogspot.com
6

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

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

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
12/20/2016 9www.simmethod.blogspot.com

SIMMETHOD Unique Value Proposition
Early Warning Detection Of Risks And Opportunities
8/9/2016
10
SIMMETHOD leverages the forecasting wisdom
and predictive analytics of the market B-I-C and
identifies where the most value is being created
7 laws of
growth
& value
creation
Gap to
market
Best In
Class
Success &
Risk
Predictive
algorithms

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
8/9/2016 www.simmethod.blogspot.com 11

SIMMETHOD
Best In Class And Risk Alert Tools
• SIMMETHOD Best In Class
analytical profiles and risk alerts
tools provide you and your C-level
with a large number of levers to
reduce your risk and improve your
performance

Oracle 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 Neg, No Neg Neg No
HR Pos, Yes Neg Pos No
Management
Controllable
Resources
Pos, No Neg Neg No
Value Creation 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
13

SAP And The SIMMETHOD 7 Laws Of Predictive
Growth And Value Creation
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
14

IBM And The SIMMETHOD 7 Laws Of Predictive
Growth And Value Creation
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
15

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”.
12/20/2016
www.SIMMETHOD.blogspot.com
16

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
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 Same
12/20/2016 17

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:
12/20/2016
WWW.SIMMETHOD.BLOGSPOT.COM
18

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
12/20/2016
WWW.SIMMETHOD.BLOGSPOT.COM
19

SIMMETHOD’s C-Level Trends 2012-2016
Oracle and the Best-In-Class
8/9/2016
20
-10
-5
0
5
10
15
20
25
30
Oracle 2012
Oracle 2013
Oracle 2014
Oracle 2015
Oracle 2016
Although its major indices have been
trending down, Oracle managed to keep
its Value Creation, Business Model and
Strategy & Execution Performance
Predictive Indices at healthy levels

SIMMETHOD
8/9/2016
21
0
5
10
15
20
25
30
35
2012 2013 2014 2015 2016
Average B-I-C
SIMMETHOD Strategy/
Execution Performance
Predictive Index
Oracle SIMMETHOD
Strategy/ Execution
Performance Predictive
index
Although positive, Oracle’s Strategy & Execution
Performance Predictive Index is trending down and its
performance gap to the Best In Class is increasing

SIMMETHOD
Best In Class Profiles And Risk Alerts
How Good Do You Have To Be To Become Best In Class?
Best In Class
Margin (average)
Laggards Margin
(average)
28% 7%
8/9/2016
22

SIMMETHOD
8/9/2016
23
-2
0
2
4
6
8
10
12
14
16
2012 2013 2014 2015 2016
Avg. B-I-C
SIMMETHOD
Management
Controllable
Resources Index
Oracle SIMMETHOD
Management
Controllable
Resources Index
Such a negative trend in the Management Effectiveness
Index shows that an ever increasing amount of resources
are needed to compete against peers and the Best in Class

SIMMETHOD
8/9/2016
24
0
2
4
6
8
10
12
14
16
18
2012 2013 2014 2015 2016
Avg. B-I-C
SIMMETHOD Value
Creation Index
Oracle SIMMETHOD
Value Creation
Index
There is a strong correlation between the Management
Effectiveness and the Value Creation Index. Although still at
very healthy levels, this can explain the negative trend

SIMMETHOD
Best In Class Value/
Employee (average)
Laggards Value/
Employee (average)
$5.1M $500,000
8/9/2016
25

SIMMETHOD
8/9/2016
26
-6
-4
-2
0
2
4
6
8
2012 2013 2014 2015 2016
Avg. B-I-C SIMMETHOD
Cash/Debt Index
Oracle SIMMETHOD
Cash/ Debt Index
Oracle’s negative trend and value in the Cash/Debt Index
is consistent with the negative trend in the Management
Controllable Resources Index and a weakened
competitive position

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

SIMMETHOD
8/9/2016
28
-1.5
-1
-0.5
0
0.5
1
1.5
2
2.5
2012 2013 2014 2015 2016
Avg. B-I-C
SIMMETHOD Sales
Index
Oracle SIMMETHOD
Sales Index
SIMMETHOD’s negative Sales Index is another iceberg in
Oracle’s sea

SIMMETHOD
Best In Class Value
created/$1 Sales
(average)
Laggards Value
created/$1 Sales
(average)
$7 $1.3
8/9/2016
29

SIMMETHOD
8/9/2016
30
-1.5
-1
-0.5
0
0.5
1
1.5
2
2.5
3
3.5
2012 2013 2014 2015 2016
Avg. B-I-C
Overheads Index
Oracle
SIMMETHOD
Overheads Index

SIMMETHOD
8/9/2016
31
0
1
2
3
4
5
6
7
8
9
10
2012 2013 2014 2015 2016
Avg. B-I-C
SIMMETHOD HR
Index
Oracle
SIMMETHOD HR
Index
Oracle’s HR Index at Best In Class
levels is a source of competitive
advantage contributing to a positive
Strategy & Execution Performance
Predictive Index

SIMMETHOD
• 2016 Best In
Class Employees
are 9 times
more valuable
than the
laggards
8/9/2016
32

SIMMETHOD
Best In Class Profit/
Employee (average)
Laggards Profit/
Employee (average)
$232,000 $29,000
8/9/2016
33

SIMMETHOD
8/9/2016
34
0
1
2
3
4
5
6
7
8
2014 2015 2016
Avg. B-I-C
SIMMETHOD Risk
Index
Oracle SIMMETHOD
Risk Index
Oracle’s Business risk at Best In Class levels
shows that Oracle is not embedding risk into
its products and services

SIMMETHOD
• 2016 Best In
Class margins
and return on
assets are about
4 times higher
8/9/2016
35

SAP and the Best-In-Class
8/9/2016
36
-10
-5
0
5
10
15
20
25
30
35
SAP 2012
SAP 2013
SAP 2014
SAP 2015
SAP 2016
Although SAP have some negative
indices and trends such as Sales,
Management Effectiveness and
Business Model , it has healthy Value
Creation and Strategy Execution
Performance Predictive indices

SIMMETHOD
8/9/2016
37
0
5
10
15
20
25
30
35
2012 2013 2014 2015 2016
Average B-I-C
SIMMETHOD
Strategy/
Execution
Performance
Predictive Index
SAP SIMMETHOD
Strategy/
Execution
Performance
Predictive index

SIMMETHOD
8/9/2016
38
-10
-5
0
5
10
15
20
2012 2013 2014 2015 2016
Avg. B-I-C
SIMMETHOD
Management
Controllable
Resources Index
SAP SIMMETHOD
Management
Controllable
Resources Index
Troublesome negative trend in the Management
Controllable Resources (Effectiveness) Index

SIMMETHOD
8/9/2016
39
0
2
4
6
8
10
12
14
16
18
20
2012 2013 2014 2015 2016
Avg. B-I-C
SIMMETHOD Value
Creation Index
SAP SIMMETHOD
Value Creation Index

SIMMETHOD
• 2016 Best In
Class on
average,
leveraged the
value of their
assets 400%
8/9/2016
40

SIMMETHOD
8/9/2016
41
0
1
2
3
4
5
6
7
2012 2013 2014 2015 2016
Cash/Debt Index
SAP SIMMETHOD Cash/
Debt Index

SIMMETHOD
• 2016 Best In
Class on
average,
generated 2.5
times more cash
per employee
8/9/2016
42

SIMMETHOD
8/9/2016
43
-2
-1
-1
0
1
1
2
2
3
2012 2013 2014 2015 2016
Avg. B-I-C
SIMMETHOD Sales
Index
SAP SIMMETHOD
Sales Index
When your SIMMETHOD indices move
in opposite direction to the Best In
Class your competitive advantage is
proportionally weakened

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
44

SIMMETHOD
8/9/2016
45
-5
-4
-3
-2
-1
0
1
2
3
2012 2013 2014 2015 2016
Avg. B-I-C Overheads
Index
SAP SIMMETHOD
Overheads Index

SIMMETHOD
What Sank The Titanic And Is Sinking Some Of
Our Great Companies?
• 2016 laggards have
to spend 3 times
more in overheads to
achieve the same
level of profits as the
Best In Class
8/9/2016
46

SIMMETHOD
8/9/2016
47
-4
-3
-2
-1
0
1
2
3
4
5
6
2012 2013 2014 2015 2016
Avg. B-I-C
SIMMETHOD HR
Index
SAP SIMMETHOD
HR Index
SAP HR Index shows that HR is contributing to
its Strategy Execution at a healthy level versus
the Best In Class

SIMMETHOD
8/9/2016
48
-3
-2
-1
0
1
2
3
4
5
6
7
8
2014 2015 2016
Risk Index
SAP SIMMETHOD Risk
Index
SAP Risk Index has
been zero for the last
two years (a middle
of the road result)

IBM and the Best-In-Class
8/9/2016
49
-25
-20
-15
-10
-5
0
5
10
15
IBM 2012
IBM 2013
IBM 2014
IBM 2015
IBM 2016
Given IBM’s negative SIMMETHOD indices
the chances of being outperformed by old
and new competitors is very high

SIMMETHOD
8/9/2016
50
-30
-20
-10
0
10
20
30
40
2012 2013 2014 2015 2016
Average B-I-C
SIMMETHOD Strategy/
Execution Performance
Predictive Index
IBM SIMMETHOD
Strategy/ Execution
Performance Predictive
index
IBM’s performance sea is
full of icebergs

SIMMETHOD
8/9/2016
51
-6
-4
-2
0
2
4
6
8
2014 2015 2016
Average
SIMMETHOD B-I-C
Risk Index
IBM SIMMETHOD
Risk Index
In comparison to peers and the Best
In Class IBM’s strategy and execution
risk is high

SIMMETHOD
Why Is Your SIMMETHOD Risk Index So Important
To You, Your Prospects And Your Customers?
• As a cloud vendor, your
strategy and execution risk
is embedded in your
products and services and
is likely to be transferred
to your customers and
value chain
8/9/2016
52

SIMMETHOD
8/9/2016
53
-20
-15
-10
-5
0
5
10
15
20
2012 2013 2014 2015 2016
Management
Controllable Resources
Index
IBM SIMMETHOD
Management
Controllable Resources
Index
This SIMMETHOD index shows
that IBM’s management
effectiveness and resource
utilization versus the Best In Class
is negative

SIMMETHOD
8/9/2016
54
-15
-10
-5
0
5
10
15
20
2012 2013 2014 2015 2016
Avg. B-I-C
SIMMETHOD Value
Creation Index
IBM SIMMETHOD
Value Creation
Index
A negative Management Controllable
Index will tend to correlate to a negative
SIMMETHOD Value Creation Index

SIMMETHOD
• The market has
reduced the value of
the assets of the
2016 laggards by
$143 Billion-dollars
8/9/2016
55

SIMMETHOD
8/9/2016
56
-6
-4
-2
0
2
4
6
8
2012 2013 2014 2015 2016
Avg. B-I-C
SIMMETHOD
Cash/Debt Index
IBM
SIMMETHOD
Cash/ Debt
Index
The Cash/Debt Index is one more
iceberg in IBM’s sea

SIMMETHOD
• 2016 laggards carry
about 9 times more
debt and generate
half the profit of the
Best In Class
8/9/2016
57

SIMMETHOD
8/9/2016
58
-3
-2
-1
0
1
2
3
4
5
2012 2013 2014 2015 2016
Avg. B-I-C
Overheads Index
IBM SIMMETHOD
Overheads Index
Although IBM has a B-I-C Overheads
Index, it is not contributing to Best In Class
performance results

SIMMETHOD
8/9/2016
59
-7
-6
-5
-4
-3
-2
-1
0
1
2
3
4
2012 2013 2014 2015 2016
Avg. B-I-C
SIMMETHOD HR
Index
IBM SIMMETHOD
HR Index
IBM’s HR Index has been moving
in opposite direction to the Best
In Class leading to negative
performance and a weakened
competitive position

SIMMETHOD
• 2016 laggards
need 8 times
more employees
to achieve the
same strategy &
execution
outcomes as the
Best In Class
8/9/2016
60

SIMMETHOD
8/9/2016
61
-5
-4
-3
-2
-1
0
1
2
3
2012 2013 2014 2015 2016
Avg. B-I-C
SIMMETHOD Sales
Index
IBM SIMMETHOD
Sales Index
With a promising positive trend,
the negative SIMMETHOD Sales
Index is one of the many icebergs
on IBM’s sea

SIMMETHOD
• Although the
2016 laggards
operate with 3
times more
employees, they
sell 30% less than
the Best In Class
8/9/2016
62

SIMMETHOD
Competitive Intelligence Risk Alerts
8/9/2016
63
-30
-20
-10
0
10
20
30
40
Average B-I-C
SIMMETHOD
Strategy/ Execution
Performance
Predictive Index
Oracle
SIMMETHOD
Strategy/ Execution
Performance
Predictive index
SAP SIMMETHOD
Strategy/ Execution
Performance
Predictive index
Microsoft
SIMMETHOD
Strategy/ Execution
Performance
Predictive index
IBM SIMMETHOD
Strategy/ Execution
Performance
Predictive index
Salesforce
SIMMETHOD
Strategy/ Execution
Performance
Predictive Index
2012
2013
2014
2015
2016

SIMMETHOD
Competitive Intelligence Risk Alerts
8/9/2016
64
-12
-10
-8
-6
-4
-2
0
2
4
6
8
10
Avg. B-I-C
SIMMETHOD
Risk Index
Oracle
SIMMETHOD
Risk Index
SAP
SIMMETHOD
Risk Index
Microsoft
SIMMETHOD
Risk Index
IBM
SIMMETHOD
Risk Index
Salesforce
SIMMETHOD
Risk Index
2014
2015
2016

SIMMETHOD
8/9/2016
65

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 71www.simmethod.blogspot.com

Simmethod from software as a service to outcomes as a service, oracle, sap and ibm 2017 and beyond

Recommended

Recommended

More Related Content

What's hot

What's hot (6)

Viewers also liked

Viewers also liked (7)

Similar to Simmethod from software as a service to outcomes as a service, oracle, sap and ibm 2017 and beyond

Similar to Simmethod from software as a service to outcomes as a service, oracle, sap and ibm 2017 and beyond (20)

More from SIMMETHOD: Converting Information Into Assets

More from SIMMETHOD: Converting Information Into Assets (12)

Recently uploaded

Recently uploaded (14)

Simmethod from software as a service to outcomes as a service, oracle, sap and ibm 2017 and beyond