The Enterprise Value (EV) of a company, in its essence is the combination of its “future cash flow value” and its linkage to “future expectation building abilities” discounted by today’s cost of capital.
The key to a State-of–the-Art Strategic Planning Process includes Strategy Science (Quantitative) for formulating and testing elements and developing Strategy Execution (Qualitative) elements at the same time.
Not long ago, the only way to poll customer sentiment was through customer focus groups (Qualitative). Today, executives can ask their data specialists to find those insights (Quantitative) in social and on-line profiles, web site behavior, internal data, sensor data, and more.
On a recent flight from Mexico City to Tijuana, I picked up a day old copy of the FT. It was one of those editions that was packed with great reads. An article from BBVA Chief Executive,Francisco González, was the stand-out. Why anybody is spending USD 500,000 on a new branch distribution, instead of investing in Big Data to understand better their customers is beyond me.
Availability of the data will ensure that multiple data sources can be fused, such as CDRs, social data, open data, government data, NGO data and corporate data, to create valuable and relevant new insights that will truly have a long term impact.
Putting the “Big” into “Data” promises to eliminate sampling bias. But when “N = All” have big insights kept pace? The challenge now is to solve new problems and gain new answers – without making the same old statistical mistakes on a grander scale than ever.
Bankers beware. Branch transactions reach point of inflection. For closing! Now is better than ever to evaluate the performance of the branch network.
Flat Revenue Growth and a stagnant Stock Price.
Since 2000, the company has sold off businesses that collectively generated $24 billion in sales, including Personal Computers and Servers to Lenovo. Good. These are no longer material to the IBM Core.
Interestingly IBM has invested $24 billion in the data analytics business, including $17 billion on 30 acquisitions. In 2013, the business generated nearly $16 billion in revenue. Good. These are Sources of Profitable New Growth.
The street sees this as a “timing & execution” discount as the new Big Data Category and IBM’s non leadership positioning, integration and execution efforts within the Category holding back the stock price.
A classic case of what happens when Internal Innovation slows and needs to be replaced with high cost – high effort M&A.
I thought it was hilarious that Larry did not make it to his own keynote at Oracle’s Openworld. Just after I arrived to San Francisco, New Zealand, had won the “final” race, but 40 seconds outside the allotted time. So turning over an 8-1 deficit to win the Americas Cup is testament to Oracle technology and will to win. Even if you believe it was down to the powerboat which held Oracle’s cloud on a wave adjusting the hydrofoils or because they “fired” the Data Scientist for not making “sense” of the numbers.