The rise of the industry agnostic enterprise

SIMMETHOD™ Competing Outside your Fishbowl The Rise of the Industry-Agnostic Enterprise
A New Industry-Agnostic Way to Measure and Predict Corporate Risk and Performance and Fend-Off Current and Future Competitors
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SIMMETHOD™
Risk and Opportunity C-Suite Alerts
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Competing Outside your Industry
“My fundamental belief is that if a company wants to see the future, 80 percent of what is going to have to learn will be from outside its own industry”.
Dr Gary Hamel
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Competing Outside Your Industry Blue Ocean Strategy
•“Blue ocean strategy is based on the view that market boundaries and industry structure are not given and can be reconstructed by the actions and beliefs of industry players”.
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•“Assuming that structure and market boundaries exist only in managers’ minds, practitioners who hold this view do not let existing market structures limit their thinking.
•To them, extra demand is out there, largely untapped”.
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•“The crux of the problem is how to create it. This, in turn, requires a shift of attention from supply to demand, from a focus on competing to a focus on value innovation – that is, the creation of innovative value to unlock new demand”. Wikipedia
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Competing Outside Your Industry requires industry-agnostic metrics
•“Starbucks thinks it might make some of its future revenue as a software company”. Quartz 4/25/14
•“Google is waging a financial war of attrition to win the cloud”. Mims, Quartz 4/24/14
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Competing outside your industry requires industry-agnostic metrics
•“Apple earnings prove it: This is a phone company”. Christopher Mims, Quartz, 4/24/14
•“Apple appears to be quietly building out an infrastructure to expand this business further, and it could put Apple at the forefront of e-commerce and mobile payments”. Business Insider, 4/27/2014
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The Way We Measure Corporate Performance is Broken
•What happens when enterprises use metrics, leading indicators, analytics and risk alerts that are industry inward-looking rather than industry-agnostic market focused?
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The Way We Measure Corporate Performance Is Broken
Why do Businesses fail or fail to perform? Blockbuster Borders
Circuit City
Mervyns
Wachovia Washington Mutual Linen n’ Things
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SIMMETHOD Strategy & Execution Performance
Predictive Index
Your
industry’s
competitors
Your
industry’s
Best-In-Class
Market competitors
from outside your
industry
Market’s Best-
In-Class
Why do you need
industry agnostic
metrics?
The entire
market is your
new fishbowl

The Leading Indicators and Risk Alerts of the Market Best-In-Class
Why do you need industry agnostic metrics, analytics, leading indicators and risk alerts?
•In an interdependent market (like the planets in the solar system) your current and future risk and performance are impacted by an ecosystem of constantly changing competitors coming from inside and outside your Industry.
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Your C-Level Line of Vision Will determine
Your Results
Your data
Your
industry
data, ratios
& risk alerts
SIMMETHOD™
industry
agnostic
strategy
execution
performance
predictive
indices
SIMMETHOD
industry
agnostic
Best-In-Class
Profiles and
Risk &
Opportunity
Alerts
Your C-Level line of vision without
SIMMETHOD’s industry agnostic
metrics and risk alerts
Traditional Business Intelligence and
analytics with Your Company and
industry data only

It is hard to prevent what you do not know
•Risk: doing better than your industry’s peers but unable to identify and fend off future competitors from outside your industry. (See next charts)
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How to Fend Off New Competitors Coming From Different Industries?
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1 2
3
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5
6 7
8
9
2012
2013 2014 SIMMETHOD's industry agnostic Best-in-Class
Your industry's Best- In-Class
YOU
Industry-agnostic leading indicators and metrics of the SIMMETHOD Best-In- Class Risk and opportunity gap 11/30/2014
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0
1
2
3
4 5 6 7
2012
2013
2014 SIMMETHOD's industry agnostic Best-in-Class
Your competitors within your industry
YOU 11/30/2014
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Industry-agnostic leading indicators and metrics of the SIMMETHOD Best-In- Class
Risk & opportunities gap

Are You Confusing Any Positive Growth For Real Competitive Advantage?
•Risk: Although your Strategy & Execution Performance Predictive index is higher than your peers, it is lower than the Strategy & Execution Performance Predictive Index of the SIMMETHOD Best-In-Class
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Are You Confusing Any Positive Growth For Real Competitive Advantage? 0 1 2
3
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5
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9
2012
2013 2014
Best-In-Class Strategy & Execution Performance Predictive Index Your competitors within your industry
Your Strategy & Execution Performance Predictive Index 11/30/2014 18 WWW.SIMMETHOD.BLOGSPOT.COM
Industry agnostic metrics and leading indicators of the SIMMETHOD Best-in-Class Risk and opportunities gap

Are Your Leading Indicators Sending You Broke?
•Risk: Beating analysts’ expectations but unable to identify and fend off future competitors from outside your industry. (See next charts)
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SIMMETHOD Strategy & Execution Performance
Predictive Index
Your
industry’s
competitors
Your industry’s
Best-In-Class
Market competitors
from outside your
industry
Market’s Best-
In-Class
Your industry
The entire
market is your
new fishbowl
Beats analyst
expectations. Is this a
failed metric and
leading indicator?
Your products

0
1
2
3
4
5
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7
8
2012 2013 2014
SIMMETHOD's industry agnostic Best-in-Class Analysts expectations
YOU beating analysts expectations
Risk & opportunities gap
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Industry agnostic leading indicators of the SIMMETHOD Best-in- Class

Can industrial-era metrics and ratios mislead you into wrong decisions?
•Industrial-era classifications were designed when industries had clearly defined barriers to entry and for a business world and business rules that do not exist anymore
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•Now the main question is not in which industry you are in but rather what is your ecosystem, business model and from how many old- industries your competitors will come from?
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•Are your metrics, analytics, business and marketing intelligence and leading indicators based on old industry or product classifications?
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•In the following graph, although your sales data trend is positive and beating analysts’ expectations, your SIMMETHOD Sales Index shows a widening gap to the Best-In-Class, indicating a loss of competitive advantage against future competitors and the Best-In-Class.
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0
1 2 3
4
5
6 2012
2013
2014
Your SIMMETHOD Sales Index Analysts expectations Your sales raw data beating analysts expectations
SIMMETHOD Best-In- Class Sales index Widening Sales Index gap to the Best-In-Class
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WWW.SIMMETHOD.BLOGSPOT.COM When your performance is below B-I-C beating analysts’ expectations is a failed metric

•“Amazon First Quarter Sales Pop 23%, Beat Street Expectations”. Maggie McGrath, Forbes 4/24/2014.
•“Amazon’s shrinking profit sets off a seismic shock to its shares”. James B. Stewart, The New York Times.
•Suddenly, the stock market is worried about Amazon’s profit-free business model”. John McDuling, Quartz.
11/30/2014

•“Pandora’s Stock Is Getting Nuked Despite Beating Analysts’ Expectations”.
•“Even though Pandora reported better than expected earnings on Thursday, its stock is trading down 12%”. Business insider, 4/12/2014
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Competing Outside Your Industry Requires New Industry-Agnostic Metrics
Key predictive question:
•How do you measure and predict your risk and performance and identify new opportunities in an industry-agnostic market?
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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

SIMMETHOD Risk and Opportunities Alerts
•The SIMMETHOD algorithms review business data and stockholders valuation-decisions across business sectors and build industry- agnostic indices in order to identify, measure, correlate and predict your strengths, weaknesses, risks and opportunities against your current and potential future competitors from inside or outside your industry.
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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.
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•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.
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•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.
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•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.
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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.
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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 11/30/2014 37 WWW.SIMMETHOD.BLOGSPOT.COM

The rise of the industry agnostic enterprise

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