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FY14 1016 Code Halo Supplement A5 booklet V7 Lowres .pdf


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WINNING IN A
CODE HALO WORLD
How the digital information surrounding people, objects
and organizations is changing the rules of business

Cognizant (NASDAQ: CTSH) is a leading provider of information technology, consulting, and
business process outsourcing services, dedicated to helping the world’s leading companies build
stronger businesses. Headquartered in Teaneck, New Jersey (U.S.), Cognizant combines a passion
for client satisfaction, technology innovation, deep industry and business process expertise, and
a global, collaborative workforce that embodies the future of work. With over 75 development
and delivery centers worldwide and approximately 211,500 employees as of December 31, 2014,
Cognizant is a member of the NASDAQ-100, the S&P 500, the Forbes Global 2000, and the Fortune
500 and is ranked among the top performing and fastest growing companies in the world. Visit us
online at www.cognizant.com or follow us on Twitter: Cognizant.

World Headquarters

UAE Headquarters

KSA Headquarters

500 Frank W. Burr Blvd.
Teaneck, NJ 07666 USA
Phone: +1 201 801 0233
Fax: +1 201 801 0243
Toll Free: +1 888 937 3277
Email: inquiry@cognizant.com

# 2301, Al Thuraya Tower 2
Dubai Internet City
P.O. Box 500378 Dubai,
United Arab Emirates
Ph: +9714 4347608
Fax: +9714 4290325

28th Floor, Kingdom Tower
PO Box 230888, Riyadh 11321
Kingdom of Saudi Arabia
Ph: +96612118076
Fax: +96612118001
Email: inquirymiddleeast@cognizant.com

­­© Copyright 2015, Cognizant. All rights reserved. No part of this document may be reproduced, stored in a retrieval system,
transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the express written
permission from Cognizant. The information contained herein is subject to change without notice. All other trademarks mentioned herein
are the property of their respective owners.

This Cognizant publication has been prepared exclusively for senior executives
in the Middle East. Look inside for:
• Insights from Cognizant’s ground-breaking book Code Halos that explains how today’s
outliers in revenue growth and value creation are playing by a new set of rules.
• The five-stage model for success that can help businesses win at the “crossroads,” a
compressed time period in which market leadership changes dramatically.
• A chance to receive a FREE copy of Code Halos ($20.20 on Amazon.com).

The starting point of business success
in a data rich world
Think for a moment about your
personal mobile and computing
gadgets. Now think about all the
things you do with them: connect
with friends, play games, manage
your money, read books, work, watch
movies, listen to music, monitor
your fitness, get directions, buy any
number of products and so on.
Now imagine all the digital
information flowing daily between
every “computing” device—tablets,
mobile phones, gaming consoles,
and “things” (cars, televisions and
airplanes for instance). Each is now

surrounded by a blanket of invisible
energy. But it’s not electricity;
it’s a halo of digital information
connecting people, organizations,
processes and devices. Every
click, swipe, “like,” buy, comment,
deposit, jog and search produces
information that creates a unique
virtual identity—what Cognizant
calls a Code Halo™. To get deeper
insight on code halo concepts,
please visit http://www.cognizant.
com/code-halos

Did you know?
Between 2008 and 2020, the amount of data being managed by corporations
will grow at least 44-fold. Every day, the world creates 2.5 quintillion bytes of
data—so much that 90% of the data in existence today has been created in the
last two years alone.

Our Digital lives are changing the Rules of Business. For more information
visit http://www.cognizant.com/cognizantdigitalworks

All product names brands, and logos are trademarks™ or registered® trademarks of their
respective holders. Use of them does not imply any affiliation with or endorsement by them.

Mastery of Code Halos is the key to
outperformance
Leading companies that apply Code Halo
thinking form a trillion dollar club*
Code Halo
Company

2003 Value
(in Billions)

2013 Value
(in Billions)

Industrial
Model
Competitor

2003 Value
(in Billions)

2013 Value
(in Billions)

Amazon

$23.90

$180.20

Borders

$1.78

Bankrupt

Apple

$8.90

$515.40

Nokia

$87.50

$30.30

Facebook

Not yet
founded

$132.00

MySpace

$0.58

$0.04

Google

Private, four
years old

$355.20

Yahoo!

$29.60

$37.50

Pandora

Private,
three years
old

$6.00

HMV

$1.25

Bankrupt

Netflix

$1.5

$21.70

Blockbuster

$4.00

Bankrupt

Total

$34.30

$1,210.50

Total

$124.71

$67.84

What separates today’s high-flying
outliers—such as Apple, Google,
Amazon, Netflix and Pandora—from
fast-followers and wannabes? It’s
the ability to disrupt markets by
capturing customer insight and
market meaning from the flood of
data around us.
The data that accompanies people,
organizations and devices contains
a richness of potential business
meaning that far outstrips the

value of bricks, mortar and other
physical assets that have historically
powered market leadership.
The business model pioneered by
today’s top performing companies—and
which has toppled numerous marketleading incumbents—is transferable
to many other areas of commerce.
Put simply, we are on the cusp of a
new commercial era in which value
is derived more from information
than from physical assets.

“The impact of Code Halo thinking isn’t purely a born-digital
phenomena. Companies worldwide, across the industrial
landscape, are now embracing SMAC Stack technologies to
distill and apply meaning from Code Halo intersections. The time
to recode the enterprise is now.” Malcolm Frank, Executive Vice
President, Cognizant

A game-changing basis of competitive advantage

* “Code Halos: How the Digital Lives of People, Things, and Organizations are Changing the
Rules of Business,” by Malcolm Frank, Paul Roehrig and Ben Pring, published by John Wiley
& Sons. April 2014, http://www.wiley.com/WileyCDA/WileyTitle/productCd-1118862074.html.

No longer is business success based exclusively on size, scale and scope of factories
and steel, glass and cement of the industrial landscape. The traditional factors of
production, such as raw materials, labour and capital, no longer form the basis of
competitive advantage. While we have clearly been in the “information age” for
some time, we are entering a new phase in which information is no longer simply
a bolt-on to existing competitive assets but has become the competitive asset. We
are in the early days of an economy in which wisdom, insight and commercial value
all originate from how the data surrounding people, organizations, processes and
products interacts.

The Crossroads Model: Getting
ahead with Code Halos
In studying these dynamics, we recognize that vast industry
transformations—and the resulting violent value migrations—in books,
movie rentals, mobile phones, insurance, consumer goods, newspapers
and travel services have all followed a similar pattern.

“While enterprise systems have already scaled to high levels of
availability, reliability and performance, the next frontier is to
exploit the data generated (both past and present), by identifying
patterns within that data. Companies need to extract meaning
from these patterns and leverage that meaning to provide
personalized services to their customers, partners, employees
and the enterprise as a whole.
Companies that enrich their understanding of Code Halos with sophisticated
algorithm and analytics—including via social and mobile technologies, and sensory
data from intelligent products and intelligent machines—can create opportunities
such as a personalized service-based business models that help predict the future
buying and usage of their products and services.
The Middle East has been at the forefront of adopting both the mobile and social
Media platforms. In addition, enterprises that have accumulated a wealth of
data about their customers, employees, partners and the markets at large, must
embrace the digital wave and relook at their operating model, to eliminate the risk
of becoming irrelevant.” Stephen Fernandes, Regional Head - Middle East, Cognizant

This pattern is what we call the Crossroads Model. As companies and
industries have experienced events explained by the model (see below),
three events have occurred.
1. The winners built Code Halos at an “atomic” level oriented around people,
processes, products and organizations to create new value and experiences.
By contrast, losers largely ignored the possibilities of deriving meaning
from data, customer intimacy and the value of code, and instead continued
to work to create economic value primarily by applying industrial model
thinking to generate greater leverage from physical assets.

2. Once Code Halos formed and were enriched with data, leaders drew
predictive insights that drove industry transformations that followed a
very consistent pattern. Each industry shift has particular distinctions—
whether in timing or the formation of particular Code Halos—but in each
case there is broadly the same pattern. The book retailing industry is
an excellent example of this. Between 2000 and 2012, Barnes & Noble
lost about half its market value, while Borders’ value collapsed to zero.
Meanwhile, Amazon’s market cap grew more than 20 times.
3. The shift happened quickly. Once these Code Halo thinking took hold,
the industry landscape shifted very quickly; companies that overlooked
opportunities headed toward irrelevancy, or worse, “extinction events.”

5 stages of the Crossroads Model
The crossroads model consists of five stages: Ionization; the spark;
enrichment; the crossroads; and after the crossroads (new code rush
or extinction event).

The Crossroads Model in action
Ionization

Spark

Enrichment

Crossroads

The combination of changing economic pressures, enhanced customer
expectations and new technologies creates a context and environment for
the establishment of Code Halos and related new business models.

Spark: Where Code Halos collide and business changes
Once Code Halos emerge, associated algorithms are also developed. New
ideas and offerings are then formed, based on the intersection of Code
Halos. An innovative “spark” then quickly reshapes processes inside the
enterprise, as well as at the customer interface.

Market Capitalization

Ionization: A fertile context for innovation

After the Crossroads
Company B
Winning the
New Code
Rush

Company A
Focused on
Assets

Company B
Focused on
Code Halos

Company A
The Extinction Event

Enrichment: Turning a spark into a blaze
This is the period where Code Halos—if created and managed correctly—grow
in both number of users and value of data by orders of magnitude, giving
rise to new products, processes and models for value creation.

Crossroads: Where markets flip
This is a compressed period of time—often between one and three years—
where industry leadership shifts. At the crossroads, Code Halos have reached
critical mass and create new customer expectations and economic models.
This drives a rapid, sometimes violent, swing in reputation, revenue and
market value.

After the crossroads: The new code rush (or extinction event)
When Code Halos shift mainstream expectations of products and ways
of doing business, the transition is brutally efficient. If a company is not
prepared for this rapid market shift, it may well be on the path to an
extinction event.

Something’s changed
and you can feel it.
Organizations need
to gather data and
intelligence.

Look at places where data
collisions occur, where halos
collide, opportunities exist
to reengineer your business
around the customer
experience

Progress through the Crossroads
Model is quite disruptive for all
market participants. Even though
the industry may essentially look
the same—selling books still involves
pitching some form of “book”—the
basis of competition changes rapidly.
Customer expectations about business
relationships—as well as product/
service transactions and interactions—
radically shift. The valuation placed on

With these collisions, you
can get smart, and begin to
exploit the opportunities of
halo collisions. This is where
you set the course for the
business- win or lose.

The turning point
where smart companies
accelerate growth and poor
companies head towards an
extinction event.

companies, and how investors reward
performance, changes.
In many cases, even the basics of
financial performance—from revenue
per employee, gross margins and return
on capital—change radically. In short,
innovators differentiate and ascend
rapidly, while companies that hold too
tightly to yesterday’s business models
either stagnate or go out of business.

Social, Mobile, Analytics & Cloud
(SMAC): The fabric of the Code
Quick Take
Halo world

2006 and 2012, Blockbuster’s value dropped from about $5.5 billion to
near zero, while Netflix—by offering customers the service they really
wanted—grew more than 360% during the same time frame. In the same
manner that steam, steel and electricity powered the industrial corporate
model, the new technology stack delivers the essential data and insights
for creating Code Halos and the new knowledge economy.

The SMAC Stack: The Technology of Code Halos

25,000

There’s
a reason
CodeHalos
Halos have
have only
than
50 billion (by multiple third-party
One
reason
why Code
emerged
only
“The power of insight is beginning to shape markets and
startedistothe
emerge
in recent
years. technologies,
It’s
estimates). Much of this comes from
recently
evolution
of digital
disrupt business processes. Code Halos have already unlocked
TMupon the SMAC
they are
built
people, companies and things creating
or because
the SMAC
Stack
(a.k.a. social, mobile,
incredible value by producing customized, curated personal
Stack technologies
have
lately
and sharing Code Halos. As such, Code
analytics
and cloud),that
which
went
mainstream
experiences. This digital personalization is now showing up in
become mainstream in our personal
Halos are fueling the big data shift (not
in the “consumer” space and now form the
more traditional businesses and products. They are reaping
“consumer” lives: social, mobile,
the other way around).
significant rewards from running better, improving process
foundation
of
enterprise
IT.
SMAC
Stack
analytics and cloud. These technoloefficiency, and operating differently by using insight to reCode Halos are changing
technologies
are into
the enterprise
raw materials
Code
gies are pouring
IT at ofImportantly,
imagine work. The power of insight is beginning to shape markets
and disrupt
#FutureOfWork
the fundamental basis of competition
Halos,
and they
are
growing
at anfor
astounding
a velocity
that is
causing
whiplash
business processes.” Francisco D’Souza, CEO Cognizant
Democratized Content is
in and
many industries — rather than being
rate.
With
more products
IP-addressable
many
market-leading
companies,
even
King
1. Democratized
Content is KingMedia and enter
onto” the traditional
http://cogniz.at/143qi94
tainment
companies
must simply
depose traditional
con
for
those
with
technology
mastery
at
connected, we’re living through
an explosion “glued
tentmonarchies and embrace egalitarian consump
model,
in many cases, they
tion habits driven bysocial corporate
media and mobility
to
their
core.
of online data.
Embracing the Power of
are creating entirely new models.

es and channels.Executive SummaryThe wedding of
Prince William and Kate Middletonin April 2011 was a
reminder to many about therole of the British mon
archy in today’s world. Theevent was watched by
millions, and for a few days,London was the party
capital of the world, withmany an expert’s hours
spent analyzing who worewhat and who did or did
not make it to the list.The average Briton’s response
to all this was, “Oh we love the monarchy

But Code Halos are more than digital
25,000
technology and so called “big” data. Social

The disruptive power of new business
But this is not a story just about
models — such as those pioneered by
technology and data. Social networks
Facebook, Apple, Netflix, Amazon,
and the constant usage of mobile
networks
and—the
ubiquitous
Google, etc.
originates
from use
theseof mobile
devices (whether by humans or
companies’
integrated
application
devices
(whether
by humans
or of
machines)
into machines) are creating
SMAC
Stack technologies
to attain
are
creating
always-on ways
of their
workingembedded
that
massive
amounts
of data. Yet, data
businessnew
objectives.
Stack tech- making.”
require
formsSMAC
of “meaning
without
meaning
is
just noise, and
nologiesmeaning,
are the rawbig
materials
Code
Without
data isofjust
noise;
and without business intent just
analytics
Halos, and they are growing at an
without
predictive analytics to decode business
creates static. For a Code Halo to have
astounding rate.
intent, big data merely creates static. Focusing
business impact, it has to hold its
onWith
business
the key to extracting
more meaning
products isIP-addressable
shape, like a mosaic turning specific
and
connected,
we’re Organizations
living through canpoints
the
right
information.
theninto a full picture. It has to mean
an
explosion
of
online
data.
Between
something
in business terms.
convert these insights to foresights that not
2008
and
2020,
the
amount
of
data
only optimize key business processes
but
Focusing on business meaning is the
being managed by corporations will
also
reveal where markets
are
heading
and
key to extracting the right informagrow at least 44-fold.8 Every day, the
offer products and services that appear
tion to
and applying it to a process
world creates 2.5 quintillion bytes of
customers
as
if
they
are
reading
their
minds.
with
potential commercial implicadata — so much that 90% of the data in
tions
(buying a car, brushing your
Consider
the
movie
rentals
business.
Between
existence today has been created in the
teeth,
maintaining an aircraft engine,
9
last two years alone. Much of this data
going
for
a bike ride, renting a movie,
is now being created and consumed
processing
an insurance claim or
via mobile devices. There are approxicreating
a
new
investment product or
mately 8 billion mobile devices in use,
service).
and by 2020, this will grow to more

1m

10m

#Social #Media for
#Broadcast Business

How To Develop a
Successful Connected
Devices Strategy :
http://cogniz.at/ZNU09W
#CIO #bigdata

14m

Just about to catch a plane
to London - look out, here I
come!!!!!
instagram.com/yifSx
@conniethanks
sweetheart, can’t wait to
see you back home again

“The book on Code Halos is a practical guide
to bringing your business into the 21st century.”
ZDNet

1m

10m

JFK LGW
American Airways
Flight G34789
Departing 15:35
On time

8,449
Total Airmiles

14
Flights

“Here,” says Carey Mulligan, alighting excitedly on a page
in a well-thumbed paperback biography of Zelda Fitzger
ald. “ ‘She had no more worries than a puppy would have,
or a kitten. . . .’ That’s Zelda. That’s Daisy.”

“Code Halos will be sported by virtually every successful
company in the near future.” Thomas H. Davenport,
coauthor of Competing on Analytics

We are in a café in Covent Garden, and the 27-year-old
actress is taking me through her research for the role of
Daisy in Baz Luhrmann’s forthcoming adaptation of The
Great Gatsby. Her blonde hair newly grown out, Mulligan
is wearing some battered cowboy boots she bought in
Montana (“I was thrown from an actual horse in them”),
leggings, and a much-loved brown sweater with holes in
the elbows, shrunk with too many washes. Last night, she
stayed with her parents in order to take her mother to a
cooking class as a belated Christmas present; she has just
big table and everyone mucking in, all tasting from the
same pot.” Hence the jumbly, just-pulled-on clothes.

“Code Halos is a must-read, twenty-first century, peerbased business survival manifesto for chief information
officers.” Gary J. Beach, Publisher Emeritus, CIO magazine

Request a complimentary copy of Code Halos to ignite your own journey
Read Code Halos to delve deeper into the Crossroads Model and to learn
how to embed Code Halo thinking in your business’ strategic planning and
execution for outperformance. Or download our award-winning app to
explore Code Halos thinking in an engaging and interactive way. . Julie Evans was tagged in Paul
Barns photo. — with Mark Wright
and 4 others.4 minutes ago

>
Contact Harleen Kaur at inquirymiddleeast@cognizant.com to register
for a FREE copy of Code Halos. And please hurry—we only have a limited
number available!
Like • Comment • Share

> Get the app by visiting www.futureofwork.com/codehalos
> Find out about Cognizant’s SMAC offerings on www.cognizant.com/smac
Welcome home Lisa
The staff posted “Introducing the marvelously redesigned Vimeo
mobile website”to the blog. The latest Vimeo Video School
lesson is “Challenge: Storytelling the Stillmotion Way”.
My Feed My Videos Watch Later Discover Activity

If you don’t see a path,
make a new one.
In an increasingly dynamic business environment, you need
to break from convention in order for breakthroughs to follow.
At Cognizant, we combine business consulting, next generation
technology and business process expertise to help healthcare
organizations not only run better, but run different—a distinction
that’s helped make us a mainstay on Fortune’s ‘World’s Most
Admired Companies’ for three years running. So if you’re ready to
see opportunities and see them through, we say: let’s get to work.


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