Martixx Approach
In our view, new competitive dynamics unleashed by Web 2.0 and Enterprise 2.0 technologies necessiate a new approach to running a business, no matter your vertical. As such, we have devised “The Matrixx” Approach for the new realm of management. A realm requiring simultaneous, thoughtful and analytical consideration of your business, macro and micro economics, geo-political dynamics as well as global, societal and enabling foundation technology and industry value-chain events.
The Matrixx Approach
As an approach to the end stated above, we begin by a scan of macro and micro economic factors while also carefully considering key sector issues.
Macro Scan
Click on Image
Micro Scan
Click on Image
We tailor a model to evaluate your stock price considering your product mix vs. service mix as compared to your competitors and ascertain, with deep analytical considerations, where your stock price should when compared to the same set of criteria relative to your competitors. Conduct the same current vs. real adjustments form your competitors perspective on their stock, product and services mix relative to yours. A trajectory map like below is then be constructed.
Product and Service Mix vs. Stock Price Trajectory Grid
Click on Slide
At this point in the Marixx Approach, we shift our focus on to two elements: Firstly, why are you under priced or over-priced relative to your real product and services mix when compared to your peers. And, secondly, and more importantly, why are some players placed way above the equilibrium price zone and in the “Super Premium Realm“. A natural questions that would present itself is to what extent is the premium levied on your peers’ stock price is driven by hype vs. reality. Hype would be grounded on perception vs. real revenue pockets that those players are pursuing. As an example, in the Web 2.0 realm, the shift of advertising Dollars from off-line to the on-line medium is real and the size of the revenue pie is $247b in the US alone. Similarly, the global market for Network Centric Operations (NCO and SOA) for the public sector is nearly $350b with better that 1/2 located outside the United States. In yet another example, wringing out unproductive SG&A costs residing in the US corporate cost structures is itself another $500b opportunity pie.
Next and to better visualize the very real effect of services and Web 2.0 in creating a super premium in stock values, we devise a grid evaluating the role of services vs. products and capture the key success factors as well as the basis of competition associated with each link as seen below:
The Services and Web 2.0 Effect on Stock Price and Valuations
Click on Image
It is then time to understand the number and the size of all revenue pockets in the services and Web 2.0 realm. A grid such as the one below is then devised by your Matrixx Advisor to visually depict these pockets and begin to act as a foundation for driving nimble strategy and the hybrid leadership that is necessary to fully take advantage of all these revenue pockets, driven by a mix of organic and in-organic approaches.
The Web 2.0 and Services Market Opportunity Pockets
Click on Slide
It is critical to note that the Matrixx Approach heavily relies on accurate, ever fresh data and constant analysis to keep track of dynamic external factors, shifting value-chains, rapid technological discontinuities, revolutionary business models in support of every business decision within the organization. The model further leverages use of Web 2.0 technologies within the enterprise to enhance collaboration and information sharing. And, finally, the approach relies on superb, holistic and constantly refreshed formulation of strategy and flawless execution of tightly coupled strategic and operational plans that are backed by visible business processes, realistically defined KPIs, superb control on metrics to achieve the goal. Last but not least, the Matrixx Model heavily relies on creating a malleable organization structure that morphs as needed to respond to the market needs and shifts rather than internal desires and conveniences in a structure.
For a a consulting session or a full copy of above slides, please email us at kevin_curtis@matrixxadvisory.com.
Kevin R. Curtis
CEO, Matrixx Advisory Services
877.416.4224 Ext. 01
