value dynamics
TRANSCRIPT
1© 2000 Arthur Andersen. All rights reserved.ValueDynamics
Agenda for Today
nWill the Real Economy...
nDo Profits Matter?
nWhat’s a Business, Anyway?
2© 2000 Arthur Andersen. All rights reserved.ValueDynamics
Introducing Our New Book
3© 2000 Arthur Andersen. All rights reserved.ValueDynamics
Will The...Real Economy Standup
4© 2000 Arthur Andersen. All rights reserved.ValueDynamics
Bull or Bear - $100 Invested in 1982
n$1,200 in a market basket
n$31,700 in software
n“Real estate is a hedge...
nAgainst making money”
nLess than $400
5© 2000 Arthur Andersen. All rights reserved.ValueDynamics
And It is Just the Beginning...
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buyers sellers
2000
2002
6© 2000 Arthur Andersen. All rights reserved.ValueDynamics
...Both in US and Abroad!
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100
200
300
400
Japan Europe US
B:CB:B
$ B in 2002 - 4
7© 2000 Arthur Andersen. All rights reserved.ValueDynamics
The Rules Are Changing!
nIntangibles drive Value
nGlobalization is Key
nNew Technologies expanding
nThe War ... is for Relationships
nVolatility is here to stay!
8© 2000 Arthur Andersen. All rights reserved.ValueDynamics
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Mar
ket V
alue
($
billi
on)
How Do Businesses Create Value?
1993 1999
AOL vs Time Warner
9© 2000 Arthur Andersen. All rights reserved.ValueDynamics
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Mar
ket
Val
ue (
$ bi
llion
)
AOL Simon Property
Business Models Determine Value
1993 1999
10© 2000 Arthur Andersen. All rights reserved.ValueDynamics
Business Models Determine Value
0
10,000
20,000
30,000
40,000
1993
1995
1997
1999
Yen
(bill
ions
) NTT
NTTDocomoShinnittetsu
Softbank
11© 2000 Arthur Andersen. All rights reserved.ValueDynamics
Do ProfitsMatter?
12© 2000 Arthur Andersen. All rights reserved.ValueDynamics
How Do YOU Calculate Value?
Liabilities
Assets
Balance Sheet
Net Worth
Revenues
Expenses
Income Statement
Net Income
Cash Flow
13© 2000 Arthur Andersen. All rights reserved.ValueDynamics
You are Your Assets, All of Them!
Physical
Financial
Tangible Assets
Customer
Employee& Supplier
Organization Intangible Assets
14© 2000 Arthur Andersen. All rights reserved.ValueDynamics
New Economy
Old Economy
Business Models Drive Success
15© 2000 Arthur Andersen. All rights reserved.ValueDynamics
BusinessNot as Usual
16© 2000 Arthur Andersen. All rights reserved.ValueDynamics
Leaders asking Same Questions
nPeople, People everywhere, but not a…!
nWill Increasing Return Models Dominate?
nHow will Risk be calculated & Managed?
nWill the Sources of Capital Recalibrate?
nWhat will be the NEXT NEW, NEW thing
nHow will Measurement & Reporting change?
17© 2000 Arthur Andersen. All rights reserved.ValueDynamics
Val
ue
Transformation
Time
P - Markets
D - Markets
How Will You Create Value?
18© 2000 Arthur Andersen. All rights reserved.ValueDynamics
Implications For You
nWhich New Assets?
nWhat New Technologies?
nWhat New Partners?
19© 2000 Arthur Andersen. All rights reserved.ValueDynamics
Systems & Processes
Measurement &Reporting
Total RiskManagement
Business Model Design
BUT, Don’t Forget all the Issues
ValueDynamics