FY14 1016 Code Halo Supplement A5 booklet V7 Lowres.pdf
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.”