Business management


Costs do not influence the use value of products

The value of a product does not depend on the cost to produce it. Costs might define the limit of the feasibility of a business but the do not define the value of the product.

The following metaphor will provide the general idea.

“The cost of a glass is given by its solidity.
The value is given by its hollowness.
Costs add no value.
Values add no costs.
But both integrate the glass.”

The value of a product is what makes a business possible and drives the maximal strategy. It has no causative relation with the cost. This is self-evident in the software business. But in the construction business, there appears to be a relationship between costs and value that in fact does not exist.

The costs of products define the minimum strategy; they define the feasibility of a business. In some type of businesses these limits are more significant than in others. But understanding that the costs have no causative relationship with the value allows defining expansive and profitable business strategies.

In business activity, the preceding metaphor can be completed with the saying:

“Businessmen/women need to reduce the costs, that have no value,
and increase the value that has no costs.”

Diego Belohlavek

NOTE: The Unicist Research Institute was the pioneer in using the unicist logical approach in complexity science research and became a private global decentralized leading research organization in the field of human adaptive systems. It has an academic arm and a business arm.
https://www.unicist.net/financials/wp-content/uploads/2016/01/turi-1.pdf


Discovery of the Nature of Decision Making

The discovery of the Concept of Decision Making opened the possibilities for increasing the accuracy of this process by introducing the essential aspects that drive decision making processes: the objective aspects, the subjective aspects, the reasonable groundings and the ethical justifications.

About Foundations

Foundations are reasonable, understandable and provable arguments. Fallacy avoidance is ensured when foundations are included in a decision making process. That is why foundations are basic in decision making.

Decision MakingFoundations avoid decisions when the end justifies the means. Foundations establish the reasonable limits of what can be decided.

There are several conditions that have to be given when making a grounded decision.

Foundations must be reasonable: that means that the nature of a reality needs to be described in a reasonable way.

Foundations must be provable: which means that they have to be able to be proven directly or through their materialistic aspects. The nature of a reality can only be proven through forecasting its materialistic evolution.

Foundations must be understandable: which means that an individual can only participate in a decision process if s/he understands the nature of the decision.

Decision Making Segments

Empiric decisions

It is the decision that is basically based on provable groundings. Empiric decision making uses all the empirical tools to sustain the validity of what is being decided (Statistics, experiences, pilot tests, etc). Empiric decisions are put into action based on economic justifications with the limits of subjective justifications.

Logical decisions

Logical decision making is based on the capacity of understanding and reasoning the arguments that sustain the decision making process.

Logical decision making processes use explicit or implicit models to analyze reality in order to make things happen. Logical decision making processes are put into action based on subjective justifications and are sustained by the economic justification of what is being decided.

Subjective decisions

Subjective decision making is based on the ethical and subjective justification of the individual who is deciding. Although the materialistic decision making is included, it is limited by the subjective boundaries of the individual.

Subjective decisions dominantly use feelings, intuition, beliefs, convictions and personal goals as drivers. Subjective decision making processes are put into action based on logical groundings and are sustained by empiric validation.

Materialistic decisions

Materialistic decision making is based on the ethical and materialistic justifications driven by the needs of deciders. Materialistic decisions have a high level of objectivity in order to build a bridge between the objective needs of the environment and the individual.

Objective decisions are based on measurable facts, objective relations between values, benefits and costs and the need to grow of all participants. They are put into action based on empirical groundings and sustained by logical validation.

Diana Belohlavek

NOTE: The Unicist Research Institute was the pioneer in using the unicist logical approach in complexity science research and became a private global decentralized leading research organization in the field of human adaptive systems. It has an academic arm and a business arm.
https://www.unicist.net/financials/wp-content/uploads/2015/11/turi.pdf


Stock markets depend on the trend towards evolution

The evolution of markets is what makes them more reliable. Thus, markets that evolve, naturally establish a context that allows making businesses.

Investment requires an evolution context and speculation is more profitable in involution contexts. Therefore investments foster evolution and speculation fosters involution.

About Evolution and Involution

The double dialectical process that produces the double pendulum generates a high level of entropy in each movement.

The higher the level of evolution, the smaller is the amplitude of the pendulum and the lower is the entropy.

Theoretically, evolution could drive towards perfection, where materialistic and non-materialistic reality is one. At this level reality as it is perceived by humans could not exist.

But this is just hypothetical. Real life includes involution, which occurs when a specific object becomes dysfunctional to the environment.

Thus involution begins including increasing amplitude of the double dialectical pendulum.

This implies increasing entropy between the positions, generating a trend in which the loss of energy that occurs between the polarities generates an involving trend.

Involution drives toward the death of the object, its mutation or its recovery, when it finds a source of energy to compensate the involution trend and begins an evolution cycle.

In any case, it implies a new object with a different energy level with or without mutations.

Diana Belohlavek

NOTE: The Unicist Research Institute was the pioneer in using the unicist logical approach in complexity science research and became a private global decentralized leading research organization in the field of human adaptive systems. It has an academic arm and a business arm.
http://www.unicist.org/repo/#Unicist


Unicist Innovations in Corporate Finance

Financial aspects are “consequences” seen from the point of view of a company but “causes” when they are seen from the point of view of shareholders. The innovation introduced by the use of unicist ontology based and object driven technologies allowed developing a framework to manage maximal and minimum strategies to ensure results where causes and consequences are integrated.

Fundamental analysis, which is based on the unicist ontology, is what provides the understanding of actions and technical analytical information sustains the energy conservation in a company. The following description will give the basics of the innovation.

The activities of the Unicist Confederation are expanding based on the introduction of the unicist ontology and business objects driven technologies.

The Object Driven Organization of the adaptive aspects of businesses is the technology included in all the “solutions” for business optimization.

The Confederation itself also uses business objects for its growth. These objects ensure the critical mass of the solutions it provides to the market. Business solutions require the use of driving, catalyzing and gravitational business objects.

1) The business objects are the drivers of the activity providing the solutions that generate significant energy savings and optimization of results to their users.

2) The unicist approach, including diagnoses, strategies and architectures of the solutions is the catalyst of the Confederation’s proposals.

3) The emulation of nature in business is the gravitational object that sustains the activities of the Confederation.

This approach segments the market. Basically, it can be said that the object driven approach is necessary for business expansion and convenient for business administration.

NOTE: The Unicist Research Institute was the pioneer in complexity science research and became a global decentralized world-class research organization in the field of human adaptive systems. https://www.unicist.net/financials/wp-content/uploads/2015/02/turi.pdf


Every strategy has an ideology defined by the strategist

The Unicist Logical Approach defines that an ideology is a belief that uses a defined technology to sustain a specific interest. As there are no strategies but strategists, individuals project their ideology on any strategy they might be building. This ideology is basically influenced by their strategic intelligence and their type of logical thought while its purpose is implicit in the ethical intelligence they are using.

Strategic IdelologyThere are four ontological segments within the strategic ideology:

  • Creators
  • Conservatives
  • Security Seekers
  • Freedom Seekers

Creators

Their understanding of reality is based on their understanding of facts.

There are two kinds of creators, those based on an operational approach to reality and those based on a conceptual approach.

They transcend through their deeds, and apprehend reality based on personal immersion.

Operation driven creators use analogical approaches and concept driven creators use analogical and homological approaches.

Conservatives

They are idea-driven strategists with a strong analytical and/or systemic approach to problem solving.

There are thematic driven conservatives and systemic driven conservatives. They both seek for security while tending to focus on thematic or systemic solutions.

They transcend through their ideas.

They have a top-down / theory-practice approach to reality. They approach reality based on thematic homologies and factual analogies.

Security seekers

Security seekers are individuals that influence reality with frontal or flank proactive actions.

Flank actions are usually focused on exposing the implicit weaknesses that are present within the strengths of competitors.

Frontal actions seek for influencing through superiority. They use to confront with competitors strengths.

Frontals understand the ideas of their opponents and are effective when they are objectively superior.

They are democratic in the fields in which they are talented and autocratic in the fields in which they are not.

Freedom seekers

They are individuals that influence reality based on innovative actions and/or focused solutions. Therefore, there are two kinds of freedom seekers: innovators and focused solution builders.

Innovative action builders seek for the occupation of empty spaces and the expansion of business possibilities.

Actions of “Focused solution builders” are based on the introduction of alternative paradigms.

They are natural innovators, artisans and artists.

Peter Belohlavek

NOTE: The Unicist Research Institute was the pioneer in using the unicist logical approach in complexity science research and became a private global decentralized leading research organization in the field of human adaptive systems. It has an academic arm and a business arm.
https://www.unicist.net/financials/wp-content/uploads/2014/09/turi.pdf


The Unicist Standard in Diagnostics: Reliable Knowledge

Businesses are an example of adaptive systems and require dealing with their integrity in order to influence them to achieve objectives. A paradigmatic case is to “make” an adaptive system grow, e.g. a business.

It is necessary to have an integrated knowledge to influence the evolution of adaptive systems. Changes in adaptive systems cannot be pulled nor pushed. Evolution needs to be catalyzed in order to achieve possible goals.

Catalyzing implies installing objects in the processes that work as “strange attractors” to produce the results they were created for. To do so it is necessary to develop a conceptual design of the problem in order to integrate all the elements that are part of the system.

To achieve the goal of having reliable knowledge of an adaptive system it is necessary to have both the fundamental knowledge and the technical analytical knowledge.

Fundamental knowledge

The knowledge of the fundamentals of a reality is basic for individuals’ actions. It is stored in the long term memory and allows spontaneous actions in real-time.

The conscious knowledge of the fundamentals of a given reality has the following characteristics.

1) Defines possibilities
It defines the field of what is possible to be achieved.
2) Allows front-view
It makes the perception of the final picture of actions possible.
3) Destructive tests
It requires making the necessary destructive tests of their validity in order to measure the limits of their functionality.
4) Sustains maximal strategies
It allows going beyond the boundaries of the present situation because it works in homologous fields.
5) Backward-thinking: Pert thinking
It is based on seeing the solution and starting from the conceptual output when developing taxonomic action plans.
6) Future oriented
In the short or the long run all living beings will act according to their nature. Understanding the nature, defined by the fundamentals,  allows forecasting the future.
7) Systemic & Conceptual thinking
Systemic and Conceptual thinking are necessary to apprehend the fundamentals using conceptual thinking to develop taxonomies using systemic thinking.

Synthesis: Fundamentals are action driven
Fundamentals are necessary to develop activities in real time having the needed speed and acceleration to influence reality.

Technical-analytical knowledge

1) Defines the probabilities
It allows making the analysis of the experiences to define the probabilities of occurrence of facts.
2) Allows rear-view
As it is based on facts and theories it is necessary to analyze the past in order to learn from it.
3) Non-destructive tests
Technical-analytical knowledge works within predefined boundaries. Therefore the knowledge is only valid within these limits. There is no need for destructive tests.
4) Sustains minimum strategies
Minimum strategies require a strict procedure to make things happen without depending on external elements. Technical analytical knowledge allows developing these procedures within the boundaries individuals can manage.
5) Forward-thinking: Gantt thinking
It defines the elements that need to be built and integrated following a step by step approach. It implies dividing reality into “independent” objects to integrate them afterwards.
6) Past & Present Oriented
Analysis requires the existence of elements that are being observed, measured and analyzed. Therefore it is based on the pre-existence of these elements.
7) Analytic & Systemic thinking
Analytic thinking is necessary to divide reality into manageable elements and systemic thinking is necessary to reintegrate them in a functional unit.

Synthesis: Technical-analytical knowledge is control driven
Technical analytical knowledge is necessary to measure and compare the existing facts with the objective that had to be achieved.

Producing growth

A system grows when it appropriates more energy than it has spent to produce it. This implies that it needs to generate an added value to the environment that is higher than the cost to produce it.

Growth problems are always big changes

A big change is necessary when an adaptive system, e.g. a business, wants to grow beyond the natural growth driven by the trends of the environment.

Big changes are energy consuming. Therefore it has to be clear if the energy is available. The use of objects is an energy multiplier. Objects are a mass that provides a source of energy to influence change.

The energy available depends on the technology and the knowledge to make use of the technology. Objects are part of the technology that has to be available.

Most of the failures in growth happen because the energy required is not available. This might happen because of the lack of hardware (including objects), software or peopleware.

Knowledge includes the human factor and defines the possibility to generate additional added value to go beyond the existing boundaries to expand the vital space of the system in order to make growth happen.

Conclusions

Managing both the fundamental and the technical-analytical knowledge is necessary to influence adaptive systems to grow.

The knowledge of fundamentals will give you the front-view to produce the growth and the technical-analytical knowledge will give you the rear-view to control the process.

Access the unicist standard contained in the Unicist Business Search Engine:
http://www.unicist.com/

Request more information: n.i.brown@unicist.org

Peter Belohlavek

NOTE: The Unicist Research Institute is the major research organization in the world in its specialty based on more than 3,000 researches in complexity science applied to individual, institutional and social evolution. The applicative researches are based on the discovery of the Ontogenetic Intelligence of Nature and the consequent Unicist Theory of Evolution.

Unicist Strategy

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Benchmarking Procter & Gamble: Unicist Innovation

Procter & Gamble is a world leader in innovation. This allows learning from P&G how to manage innovation to make it successful in the markets.

The Unicist Standard includes a fundamental approach to deal with innovations that allows integrating fundamentals with technical analytical knowledge to produce successful innovations.

The question we are posing is: Which are the fundamentals of innovation?

You can find information on how Procter & Gamble deals with innovations presented by Robert Bob McDonald, COO of Procter & Gamble. There are two short presentations at:

http://www.youtube.com/watch?v=ycMXZDybhlw
http://www.youtube.com/watch?v=x93YopVXJSM

In one week you will find a response to the fundamentals of innovation on this blog.

Access the unicist standard contained in the Unicist Business Search Engine:
http://www.unicist.com/

Request more information: n.i.brown@unicist.org

Diana Belohlavek
VP Unicist Knowledge Bank

NOTE: The Unicist Research Institute is the major research organization in the world in its specialty based on more than 3,000 researches in complexity science applied to individual, institutional and social evolution.

Unicist Strategy

If you would like to receive monthly information on this blog, please register here.

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Trends: Unicist Lifestyle Segmentation and Evolution

Unicist LifestylesLifestyle segmentation underlies human behavior. Lifestyles establish the parameters of normality and the “ethical mask” of a society. Describing the lifestyles of a country permits establishing the limits within which segmentations can work. Only in the case of basic human needs lifestyles are not a limit but only a gravitational force.

The unicist lifestyle segmentation is analogous to the VALS segmentation of SRI. But, while VALS uses psychology to segment people according to their distinct personality traits, Unicist Lifestyle Segmentation uses anthropological invariables and country archetypes to segment people.

Unicist Lifestyles

Lifestyles are the archetypical behavior patterns of a society and its members. These archetypes serve a group as automatisms to carry out the everyday activities that are functional to that society’s purpose.

Hence, lifestyles are the result of the integration of a society’s collective unconscious with its archetype, which define different ways of facing reality.

Archetypes resolve the weaknesses of a social group by turning uncertainties into assertive answers which guarantee the success of individual and social purposes.

An individual’s lifestyle makes him acceptable and functional to the society’s needs. It also allows him to find groups of identification across different cultures or communities.

Access the unicist standard contained in the Unicist Business Search Engine:
http://www.unicist.com/

Request more information: n.i.brown@unicist.org

Diana Belohlavek
VP Unicist Knowledge Bank

NOTE: The Unicist Research Institute is the major research organization in the world in its specialty based on more than 3,000 researches in complexity science applied to individual, institutional and social evolution.

Unicist Strategy

If you would like to receive monthly information on this blog, please register here.

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Unicist Growth Programs for Family and Start-up Businesses

The Partnering Program is a business agreement between a Company and the Unicist Confederation to develop growth in a specific market.

The Partnering program is based on the use of “Market Laboratories” working as:
a) A promotional activity to increase sales
b) A market monitor to produce feedback

These programs imply real partnering between the participants. Although there is a symbolic down-payment on behalf of the participating company, the benefits are in the sharing of the growth.

This program implies a “back2back” work between the partners. The program includes the use of the necessary technologies to produce growth.

Learn more at: http://www.unicist.net/gp.shtml

Access the unicist standard contained in the Unicist Business Search Engine:
http://www.unicist.com/

Request more information: n.i.brown@unicist.org

Martin Alvaro
Marketing Manager

NOTE: The Unicist Research Institute is the major research organization in the world in its specialty based on more than 3,000 researches in complexity science applied to individual, institutional and social evolution.

Unicist Strategy

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The Unicist Standard needs to be a Rolls-Royce

Benchmarking Rolls-Royce is necessary for all those products or activities that are considered prestigious by the community and that need to sustain their seeking for perfection to achieve their credibility in the market.

In the following lines you can find the answers to the questions posed in this previous post:
http://www.unicist.net/partners-news/benchmarking-is-the-unicist-standard-a-rolls-royce/

A Rolls-Royce is an extremely prestigious car because it has extreme functionality, quality, added value and reliability.

The integration of these four extreme characteristics makes its positioning as a prestigious car possible.

The purpose of a “Rolls-Royce” is to satisfy the feeling of having achieved perfection. Perfection is considered as something that satisfies 100% the expectancy of the buyer. This means that a “Rolls-Royce” satisfies the needs of the buyer considered as an individual, as part of a group and within her/his social environment.

Every activity or product that requires perfection, in the above described sense, needs to position as a “Rolls-Royce”.  This can be frequently seen in medicine, in politics, in strategy, and in all those fields where the value added is extreme and extreme reliability is expected.

The extreme functionality mentioned above has two aspects. It has to be extremely functional as a device but also extremely functional in its operation. This implies that no one can expect a superior functionality in the market.

The need for extreme quality implies extreme quality assurance and extreme control. Thus reliability and extreme added value are sustained.

Therefore the process of Rolls-Royce building includes an extremely strict concept, its update in the field of scientific possibilities, the management of all the techniques necessary to achieve perfection and last, but not least, the necessary art to make the perfection perceivable by the community.

Rolls-Royce building and positioning is not a question of choice. It is a question of beliefs. But it needs to be said that this does not guarantee success in business.

Access the unicist standard contained in the Unicist Business Search Engine:
http://www.unicist.com/

Request more information: n.i.brown@unicist.org

Diana Belohlavek
VP Unicist Knowledge Bank

NOTE: The Unicist Research Institute is the major research organization in the world in its specialty based on more than 3,000 researches in complexity science applied to individual, institutional and social evolution.

Unicist Strategy

If you would like to receive monthly information on this blog, please register here.

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