CrossingtheDigitalDivide

Creatingvalueandgrowthtoday!

OneHourPresentationFall2015

ThereisaReality

We’lltellyou.

Industrialrevolution— 1800

Servicesrevolution— 1900

Technologyrevolution— 1950

Networkrevolution— 2010

Value

Time

Technologychangeseverything…

DigitalDivide

Eachrevolutiondeliversnewproductsandservices

Software,IPanddata

(IC)

NetworksandCustomers

(NC)

Assetsandphysicalgoods

(FC)

Peopleandservices(HC)

DigitalDivide

SelfMastery&Actualization

Connection&Collaboration

Community&Education

Sustenance&Structure

Thatmeetsemergingcustomerwantsandneeds

DigitalDivide

Connections&Interactions

(ROR)

Patents&Software(ROI)

Billablehours(Time)

Assetutilization(ROA)

Eachrevolutionmeasuredandreporteddifferentthings

DigitalDivide

Finally,eachbusinessmodelscaledindifferentways

NetworkOrchestrator

TechnologyCreator

ServiceProvider

AssetBuilder

Many make, many sell

Make one, sell one

Hire one, sell one

Make one, sell many

…Creatingdifferenteconomiceffectsinaflatworld

years

Gro

wth

NetworkOrchestrator

TechnologyCreator

AssetBuilder

ServiceProvider

Whichbusinessmodelareyouandhowdoyouscale?

?

Someoftoday’sexcitingnewcompaniesarenetworks

Butnetworks areNOTnew…

Networks areproliferatingtodayduetotwofactors

Culturalshifts

Cloud Mobile

Social

InternetofThingsAnalytics

Newtechnologies

• Sharingeconomy

• Collaborativeconsumption

• Peertopeerexchanges

• Crowdsourcing

• Networkparticipation

Investorsvaluenetwork businessmodels

AverageMultiplier(P/Rratio)

4Network

OrchestratorsTechnologyCreators

81

ServiceProviders

AssetBuilders

2Note: Analysis of the S&P 500 companies performed by OpenMattersSource: Data pulled from Capital IQ database in October 2013; Revenue is prior 12 months

DigitalDivide

Networkbusinesses areshowingsignificantadvantages

8.4 7.912.6

19.4

Assets Svcs Tech Network

Avg.RevenueCAGR’10-’12

0.15 0.14

0.24

0.32

Assets Svcs Tech Network

AverageProfitMargin

Note: Analysis of the S&P 500 companies performed by OpenMattersSource: Data pulled from Capital IQ database in October 2013; Revenue is prior 12 months

BetterprofitabilityFasterrevenuegrowth

Butchangingyourbusinessmodelishard

Mentalmodel

Businessmodel

Whatleadership…• Believesisimportant• Hasdevelopedtheirownskills• Givestimeandattention• Measuresandreports

Howacompany…• Spendsandmakesmoney• Hirespeopleanddevelopsskills• Usesandleveragestechnologies• Engageswithcustomers

Drives

• Enterprisevalue• Revenuegrowth• Profitability

Valueandperformance

Determines

Mostnetworkbusinesseswerefounded asnetwork businesses

Sales

Assets

Marketing

MeasurementEmployees

ManagementOperations

Processes

Products

SowhatcanyoudotobenefitfromthisRevolution?

?

Fourstepstoconsiderformakingprogress

Orient Assess Act Measure

Understandyourcurrentbusinessandmentalmodels

Assessallyourrelationshipsandotherintangibleassets

Allocatecapitaltoyournetworksandtakesmallstepstoinsuresuccess

Addnetwork-focusedkeyperformanceindicators(KPIs)toyourfinancialreporting

Credit card companiesStock exchangesSocial Networks

Biotechnology Software

Pharmaceuticals

RetailIndustrials

Manufacturing

ConsultantsFinancial ServicesInsurance

1.Orient:Whoareyou?

4Network

OrchestratorsTechnologyCreators

81

ServiceProviders

AssetBuilders

2DigitalDivide

2.Inventory:Whatareyourassets?

3.Allocate:Investcapitalinnetworkassets

PhysicalAssets

EmployeeAssets

IntellectualAssets

NetworkAssets

4.Measure:AddBigDatatoyourKPIs

Conceptsarenew,yettraditionalcompaniesaremakingprogress

Let’ssummarize

• Networkedbusinessmodelsarehighlyvalued

• Networkedmodelscanoffergreatergrowthandprofitability

• Youcanaddthemtoyourbusinessandcreatevalue

• Ifyoudon’t,someoneelseprobablywill!

CrossingtheDigitalDivideCreatingvalueandgrowthtoday!

May,2015