Data Driven Decisions

Expand your enterprise into new regions using systems engineering and data analysis

In Data Driven Decisions: Systems Engineering to Understand Corporate Valuation and Intangible Assets, investment banker, systems engineer, and Cornell University lecturer Joshua Michael Jahani delivers an incisive and unique unveiling of how to use the tools of systems engineering to value your organization, its intangible assets, and how to gauge or prepare its readiness for an overseas or cross-border expansion.

In the book, you’ll learn to implement a wide range of systems engineering tools, including context diagrams, decision matrices, Goal-Question-Metric analyses, and more. You’ll also discover the following:

• How to communicate corporate value measurements and their impact to owners, executives, and investors.
• Explorations of the relevant topics when considering an international expansion, including macroeconomics, joint ventures, market entry, corporate valuations, mergers and acquisitions, and company culture.
• A comprehensive framework and methodology for examining available global regions in your search for the perfect expansion target.
• A deep understanding of specific sectors in which intangible assets have a particular impact, including branded consumer products, ad-tech, and healthcare.

A must-have resource for business owners, managers, executives, directors, and other corporate leaders, Data-Driven Decisions will also prove invaluable to consultants and other professionals who serve companies considering expansion or growth into new regions.

Foreword xi

Prologue xiii

Introduction 1

Part I: Intangible Assets 7

Chapter 1: When Intangibles Matter Most 9

Chapter 2: Examples of Intangible Assets 13

Chapter 3: The Rise of Intangible Economies 15

Chapter 4: Defining Intangibles 19

Chapter 5: Valuing Intangible Assets 23

Chapter 6: EBITDA Is Not the Best Way to Value Intangible- Heavy Companies 27

Chapter 7: Separability, Measurability, and Predictability 33

Chapter 8: Why Systems Engineering Is Relevant for Corporate Valuations and Intangible Assets 41

Chapter 9: What Intangibles Matter Most for Corporate Valuation 45

Chapter 10: What Intangibles Matter Most for Corporate Expansion 55

Chapter 11: Buy-Side Intangibles 59

Chapter 12: PE Ratios 63

Chapter 13: The Business Moat as an Intangible Asset 67

Chapter 14: How Investors Think About Intangibles 71

Chapter 15: Intangible Assets in Branded Consumer Products 75

Chapter 16: Intangible Assets in Healthcare 79

Part II: Systems Engineering Tools and Examples 83

Chapter 17: Systems Engineering Tools 85

Chapter 18: Customer Affinity and Context Diagrams 89

Chapter 19: Context Diagrams and Context Matrices 97

Chapter 20: Use Cases and Behavioral Diagrams 103

Chapter 21: Originating Requirements 109

Chapter 22: Decision Matrix 117

Chapter 23: GQM – Goal Question Metric Analysis 123

Chapter 24: Analytical Hierarchy 131

Chapter 25: Precedence Matrix 133

Chapter 26: Failure Mode and Effect Analysis 137

Chapter 27: Interface Matrix 143

Chapter 28: House of Quality 147

Chapter 29: Operations Description Template 153

Chapter 30: Interface Tracking 157

Chapter 31: Conclusion to Tools 159

Chapter 32: GQM, Decision Matrix, and Analytical Hierarchy for Ad-Tech Industries 161

Chapter 33: GQM, Decision Matrix, and Analytical Hierarchy for Logistics Industries 167

Chapter 34: GQM, Decision Matrix, and Analytical Hierarchy for Manufacturing Industries 171

Part III: Geographical Application 173

Chapter 35: Introduction 175

Chapter 36: The MENA Region 179

Chapter 37: The ASEAN Region 187

Chapter 38: The Latin American Region 195

Chapter 39: Case Studies: Bringing It All Together 205

Chapter 40: Case Studies: LATAM Expanding to the United States 209

Chapter 41: Case Studies: MENA Medical Devices 213

Chapter 42: Case Studies: ASEAN Aerospace Schema – Context Diagram 217

Chapter 43: Case Studies: In Conclusion 221

Chapter 44: Summary 223

Bibliography 225

Index 235

JOSHUA JAHANI teaches Systems Engineering at Cornell University and owns Jahani and Associates, a firm headquartered in New York City that provides investment banking advisory, investment banking transaction, and corporate development expertise to clients from around the??globe.

Data Driven Decisions: Systems Engineering to Understand Corporate Value and Intangible Assets is a penetrating and original exploration of how to apply the robust and precise tools of systems engineering in the area of corporate expansion decision-making. Author, lecturer, and investment banker Joshua Jahani discusses the topics business owners??and executives must consider??when expanding around the world, including macro-economics, joint ventures, market entry, corporate valuations, mergers and acquisitions, investment banking, and company culture.

In the book, Jahani offers a comprehensive framework and methodology for examining every major global region in your search for the best fit for your organization. You will also discover methods for accurately pinpointing the value and??potential of your firm’s intangible assets.

An effective and hands-on tool for making solid decisions about business growth and expansion, Data Driven Decisions will prove invaluable to investors, business owners, executives, managers, directors, and??other leaders everywhere.

Praise for Data Driven Decisions

“Data Driven Decisions does an excellent job weaving together ideas from engineering, capital markets, and business strategy. It is a powerful primer for anyone seeking to understand how these seemingly disparate pedagogies can integrate to impact business decisions.”
—Samia Bouazza, Group CEO and Managing Director, Multiply Group, Abu Dhabi, UAE

“I’ve had the pleasure to work with Joshua for many years and am always appreciative of his ability to distill complex ideas into simple, consumable subject matter. This book does that in spades.”
—Saeed Al Darmaki, Founder, Sheesha Finance, Abu Dhabi, UAE

“Entrepreneurs can learn from the tools in this book. Business success is about developing strong, fundamental customer value that can be scaled across a market. Data Driven Decisions provides methods for how to do just that.”
—Jefrey Joe, Co-Founder and Managing Partner, Alpha JWC Ventures, Jakarta, Indonesia

“Data Driven Decisions shows a fascinating way to use concrete engineering tools to run a global business. My academic background on data analysis and my long experience running business across the globe makes me confidently recommend the application of its principles and philosophies for businesses at scale and growth stages.”
—Ricardo Oberlander, Reynolds American Inc, Former President & CEO, Sao Paulo, Brazil

“Intangible assets, such as patent, brands, IT systems, and unique corporate processes are for the past quarter century the main value drivers of businesses. The problem: they are very difficult to value because they are unique and not traded in markets. That’s a major challenge to M&As. This book, blending intangibles with systems engineering goes a long way in alleviating this problem. Highly original and readable, this book is an important resource for executives involved in M&As, appraisers, investors, and business students.”
—Baruch Lev, Philip Bardes Professor (Emeritus) of Accounting and Finance, New York, USA