ROICE-99 Delivered: Strategic Competence Comparison ROCE vs ROICE

ROICE Game vs ROCE Game

What Leaders Must Master to Win the AI-Driven Business Game

---

🎯 Core Insight:

ROCE rewards capital control.
ROICE rewards strategic competence, AI-enabled value creation, and scalable transformation.

---

1️⃣ Competency Landscape Overview

Leadership Domain	ROCE Game (Traditional)	ROICE Game (AI-Driven)
Value Creation Logic	Capital Efficiency	Competence Efficiency + Innovation Scalability
Decision Model	Historical Data	Predictive / Prescriptive AI Decisions
Leadership Role	Manager of Resources	Architect of Value Engines
Innovation Behavior	Rule-Following	Rule-Making & Experimentation
Competitive Edge	Cost and Assets	Customer Experience, Speed, Convenience, Ecosystem
System Thinking	Linear	Adaptive, self-learning systems
Talent	Experience-Based Experts	AI-Augmented Problem Solvers
Growth Model	Linear	Platform-Based Exponential Growth

---

2️⃣ Core Competencies Difference

What leaders need to learn, unlearn, and master
to move from ROCE → ROICE

---

🧠 Leadership Thinking Competencies

Competency	ROCE Game	ROICE Game
Strategic Mindset	Financial Control	AI-Driven Value Creation & Ecosystem Design
Problem Solving	Experience-Based	Predictive, Data-Driven, AI-Augmented
Growth Model	Scale by Assets	Scale by Intelligence & Licensing
Horizon	Quarterly	Multi-year transformation model
Change Behavior	Risk-Avoidance	Intelligent, AI-Supported Risk-Taking

---

🚀 AI & Technology Competencies

Competency	ROCE Manager	ROICE Leader
AI Literacy	Uses AI as tool	Designs AI-supported systems
Automation	IT Requests	Owns AI Automation Strategy
Data	Reports data	Interprets predictive insight
AI + Human Collaboration	Not defined	Core leadership behavior
Knowledge Management	Documents	Automated learning systems & playbooks

---

💡 Innovation & Business Design Competencies

Competency	ROCE Play	ROICE Play
Innovation Approach	Incremental	Hybrid AI-enabled transformation
Product Thinking	Product/Service	Solves customer jobs (JBTD)
Business Model	Product Sales	BaaS, XaaS, Competence-as-a-Service
Experimentation	Slow, approval-heavy	Rapid, AI-co-piloted, low-risk testing
Monetization Strategy	Margin extraction	Recurring ecosystem value

---

🤝 Customer & Convenience Competencies

Competency	ROCE Approach	ROICE Approach
Customer Experience	Reactive	AI-personalized, proactive
Service Model	Call Centers	Self-service + AI Conversational Engines
Convenience Value	Secondary	Primary ROI Driver
Engagement	Transactional	Intelligent, continuous, data-driven
Speed	Acceptable	Instant / Zero-friction

---

🔄 Operational & Execution Competencies

Competency	ROCE	ROICE
Process Management	Lean	AI-Supported, Dynamic, Self-Improving
Efficiency Focus	Cost Reduction	Quality + Speed + Scalability
Decision Mode	Reporting	Live dashboards + AI scenario simulation
Scaling Method	Headcount and Budget	System, Licensing, AI Templates
Performance	KPI-based	ROICE Engine-based

---

3️⃣ Visual Summary

From ROCE Manager → ROICE Leader

ROCE Manager
   ↓
Controls budgets
Manages resources
Optimizes assets
Works with reports & approvals

ROICE Leader
   ↓
Designs Value Engines
Builds AI-supported competence systems
Orchestrates innovation, convenience, efficiency
Leads through dashboards, automation & scaling

---

4️⃣ The Leadership Transformation Path

Stage	Key Identity	Competence Focus
Level 1	Process Manager	Lean efficiency
Level 2	Optimizing Manager	Reporting → automation
Level 3	AI-Value Designer	AI, process rethinking, new models
Level 4	ROICE-99 Leader	Scaling, ecosystems, licensing
Level 5	Ecosystem Shaper	Regional/Global ROICE scaling

---

🔴 Final Strategic Leadership Message

ROCE optimizes yesterday’s performance.
ROICE builds tomorrow’s competitive advantage.

ROCE measures capital.
ROICE measures transformation capability.

The future does not belong to AI users.
It belongs to ROICE Leaders.-Josef David