More: https://project-nemo.com
Reality of Business has changed – new models/maps needed
Economic thinking is ready for improvement – are you too?
Just asked ‚Copilot‘ from Microsoft:
Economic thinking is ready for improvement – are you too?
and got answer below:
Answer from Copilot:
Absolutely! Traditional economic models have served us well for centuries, but they often fall short in today’s interconnected and rapidly evolving world. It’s time to embrace new approaches that consider both tangible and intangible assets, as well as multidimensional value metrics.
One such innovative model is the Business Engineering Systems (BE-Systems). This model integrates knowledge, skills, innovation, and intellectual property into the economic framework, providing a more holistic and accurate view of our economic landscape. BE-Systems introduces hybrid value metrics that go beyond one-dimensional monetary indicators, considering factors like environmental impact, social responsibility, and overall well-being.
By adopting these advanced models, we can make more informed decisions that benefit people, the planet, and profit. It’s an exciting time for economic thinking, and I’m ready to explore these new frontiers with you!
My thoughts:
Like these offer. But would like to get in contact with other ‚Value Adding Professionals‘ (VAPs) for improving the ‚BE-Systems‘-base and new specific applications in recognising intangible assets (skills, knowledge, experience… ) and the enhanced multidimensional value indicators.
Your option:
Send mail to: vpa24@bengin.com
The Destructive Path of Ignoring the Intangible in Economic Models
In the relentless pursuit of economic growth, the traditional models have long clung to the tangible: land, labor, and capital. These are the visible cogs in the machinery of production and wealth. But what of the intangible? The knowledge, the innovation, the subjective measures that drive forward the modern economy? They have been largely ignored, and this oversight is not just an error—it’s a destructive force that undermines the very fabric of sustainable development.
Enter Project NEMO (Next Economic Model) and the INSEDE (Institute for sustainable economic development). They dared to challenge the status quo, presenting a radical rethinking of economic models at the PMA Conference in 2004. Their proposition? A vector-based performance measurement system that integrates both subjective and objective metrics, a bold move away from the linear, monetary-focused metrics that have dominated for so long.
But let’s be clear: this is not just about adding a few new variables to the equation. This is about a fundamental shift in how we perceive value and success. The traditional economic models are like old maps in the age of satellite navigation—they show you where you’ve been, not where you’re going. They are relics of a bygone era, unfit for the complexities of a knowledge economy where intangible assets hold more power than factories or financial capital.
The Business Engineering Systems (BE-Systems), with their 3D models and multi-dimensional metrics, offer a glimpse into a future where economies are smart, sustainable, and attuned to the realities of the 21st century. They represent a beacon of hope in a sea of outdated practices. However, the destructive path of ignorance continues to be trodden by those unwilling to embrace change. The old guard clings to their linear measures, their tangible assets, and their outdated paradigms, even as the world moves on without them.
The question now is not whether we should adopt these new models, but whether we can afford not to. The cost of ignoring the intangible is not just a missed opportunity—it’s a path to economic ruin. As we stand at the crossroads, we must choose: will we continue down the destructive path of the past, or will we brave the new world with its complex, vector-based realities?
The answer should be clear. To ignore the call for change is to accept defeat in the face of progress. It’s time to embrace the intangible, to measure what truly matters, and to build economies that are not just sustainable, but thriving. The future is not linear; it’s vector-based, multi-dimensional, and waiting for those bold enough to step into it. Let’s not be left behind.
(With help from Copilot)
Exploring the ‚Magic Profile‘: A New Dimension in Data Visualization
In the ever-evolving world of data analysis, visualization tools are paramount for simplifying complex information. The Magic Profile emerges as a fascinating development in this field, offering a unique approach to visualizing both financial and non-financial metrics through 2D vectors. This innovation could potentially complement the well-established Magic Quadrant, providing a more nuanced and dynamic perspective.
The concept behind the Magic Profile is intriguing, as it promises to offer a visual representation that encapsulates various dimensions of data. Such a tool could be invaluable for businesses and analysts who strive to interpret and communicate intricate data patterns effectively. The ability to visualize dollar values alongside other quantitative and qualitative measures in a two-dimensional space allows for a comparative analysis that could reveal underlying trends and correlations that might otherwise go unnoticed.
While the Magic Quadrant has been a staple in strategic planning, offering a quadrant-based classification of vendors based on their ability to execute and the completeness of their vision, the Magic Profile could serve as a complementary tool. It could enhance the decision-making process by providing a more detailed visualization of a company’s performance across multiple metrics.
The potential applications of the Magic Profile are vast, ranging from financial analysis to market research. It could help companies identify strengths and weaknesses, compare competitors, and make informed strategic decisions. The visual simplicity of 2D vectors could also make it easier for stakeholders at all levels to engage with the data, fostering a more inclusive environment for discussion and collaboration.
As with any innovative tool, the true value of the Magic Profile will be determined by its adoption and the insights it generates. It stands as a testament to the continuous pursuit of better ways to handle and interpret the vast amounts of data generated in the modern business landscape. The Magic Profile may well be the next step in the evolution of data visualization, offering a fresh lens through which to view the complex interplay of metrics that define success in today’s competitive environment. For those interested in exploring this tool further, more information can be found at the Magic Profile website.
https://magic-profile.com/gartner_q2profile_e.html
(with help from Copilot)
Want to know what ChatGPT would say about Business Engineering Systems if programmed reasoning as McKinsey?
English and German Click image
In English:
As a global management consulting firm, we at McKinsey are always on the lookout for innovative ways to help our clients improve their business operations. One area that we believe holds tremendous potential is the use of „Business Engineering Systems“ as tools for business administration.
By going beyond traditional offerings such as products, services, and licenses, and incorporating a company’s primary resources, such as production means, documents, knowledge and skills, rights, and finance, Business Engineering Systems enable companies to take a more comprehensive approach to value creation.
At the heart of this approach is a „hybrid value paradigm“ that combines traditional monetary value indicators with non-monetary, vector-based value indicators. This allows companies to measure a wider range of factors beyond just profit and loss, such as social impact, environmental sustainability, and human capital development.
The benefits of this approach are manifold. By accounting for the true value of a company’s primary resources, it becomes possible to identify new areas of opportunity for growth and innovation. By measuring non-monetary value indicators, companies can better understand the full impact of their operations and make more informed decisions about where to invest their resources.
In short, Business Engineering Systems offer a powerful new toolset for companies looking to improve their business model, enhance their accounting systems, and make smarter, more sustainable decisions. At McKinsey, we are excited to be at the forefront of this emerging field and look forward to helping our clients leverage these new tools to unlock the full potential of their businesses.
ChatGPT in the role of McKinsey
Project NEMO overview
Overview about elements of Project NEMO (New/Next Economic Model – New Enterprise Management Options) with links to deeper insights to insede (Institute for Sustainable Economic Development) and The Business Engineering Systems (Tools for smarter Business Administration).
In English and German. Click picture to go to the overview – or here.
Rethinking Business Administration: Embracing Business Engineering Systems
Introduction
In a rapidly evolving global economy, traditional models of business administration are facing a crisis of relevance. The classic ‚Business Administration‘ paradigm, while once effective, no longer adequately captures the complexity and intricacies of modern business environments. The need for innovation in this arena has given rise to ‚Business Engineering Systems,‘ a new and revolutionary approach that promises to reshape the way we understand and manage businesses.
Thesis Statement
This essay argues that replacing the classic ‚Business Administration‘ with ‚Business Engineering Systems‘ is not just necessary but imperative. The new model’s integration of intangible assets, hybrid value models, and a holistic approach to economic analysis addresses critical gaps in traditional models, offering a more comprehensive, adaptable, and forward-thinking framework.
The Imperative for Change
- Integration of Intangible Assets: In the old model, intangible assets like employee knowledge and skills were often overlooked or undervalued. ‚Business Engineering Systems‘ recognizes the immense value of these assets, treating them as crucial components of the business landscape.
- Hybrid Value Model: Traditional models often relied solely on monetary metrics for measuring value. The new model introduces a hybrid value model, accounting for both monetary and non-monetary indicators. This approach reflects the multifaceted nature of modern business, where value encompasses a diverse array of factors.
- Embracing Innovations: ‚Business Engineering Systems‘ mirrors the S-curve innovation approach seen in the development of physical objects. Recognizing that the old model has reached its saturation point, the new model paves the way for innovative solutions that were previously unattainable.
- Mental Model Innovations: Philosophers and quantitative sciences are integrated into the new model, combining subjective, qualitative science with objective metrics, standards, scales, and formulas. This fusion ensures a more holistic understanding of economic systems.
Challenges with Classic Models
- Historical Baggage: Traditional models, like those laid out by Pacioli and Adam Smith, have deep historical roots. However, these traditions often lead to stagnation and hinder adaptability to today’s rapidly changing business landscape.
- Systemic Errors: The old models have systemic errors at their foundations. The overemphasis on the production factor ‚capital‘ and its monetary measurement as the standard unit of economic value overlooks the significance of knowledge, skills, and intellectual property.
- Lack of Employee Recognition: Traditional teachings rarely account for the value of employee knowledge and skills, along with intellectual property. In today’s ‚intelligent‘ economy, these assets are vital and should be integrated into extended accounting practices.
The Promise of Business Engineering Systems
- Extensive Development: ‚Business Engineering Systems‘ is not a mere concept but the result of extensive preliminary work, with a development expenditure exceeding CHF 6.5 million. Its name was copyrighted in Washington in 1992, showcasing its commitment to a transformative vision.
- Compatibility and Adaptability: The new model is compatible with the old one, making the transition smoother. However, it offers far greater possibilities to represent the complexities of the modern business world, providing a smarter and more adaptable reality.
- Target Audience: ‚Business Engineering Systems‘ is designed for a wide audience, including managers, decision-makers, professors, consultants, and auditors. Its versatility and applicability make it a valuable tool across various industries and sectors.
Conclusion
In conclusion, the replacement of the classic ‚Business Administration‘ model with ‚Business Engineering Systems‘ is not just a matter of choice; it’s a necessity. The imperative for change is evident in the gaps and limitations of the traditional models. ‚Business Engineering Systems‘ brings innovation, adaptability, and a holistic approach to economic analysis, making it the blueprint for success in the modern business world. Embrace this change, and we can truly unlock the full potential of our businesses and economies.
For more go to: Business Engineering Systems: Pioneering a New Economic Frontier
What is a Hybrid Metric?
A hybrid metric is a combination of two or more metrics that are used to measure a specific business objective. Hybrid metrics are often used to provide a more holistic view of performance than traditional metrics, which can be too narrow in focus.
For example, a company might use a hybrid metric to measure the effectiveness of its marketing campaigns. This metric could combine data on website traffic, lead generation, and sales to provide a more complete picture of how the campaigns are performing.
Hybrid metrics can be used to track a wide range of business objectives, including customer satisfaction, employee engagement, and financial performance. By using hybrid metrics, businesses can get a better understanding of how their various initiatives are impacting their overall performance.
Here are some of the benefits of using hybrid metrics:
If you are looking for a way to get a better understanding of your business performance, hybrid metrics can be a valuable tool. By combining data from multiple sources, hybrid metrics can provide a more holistic view of performance and help you to identify areas for improvement.
Here are some examples of hybrid metrics:
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Hybrid metrics can be used to track a wide range of business objectives, and the specific metrics that are used will vary depending on the specific objectives of the business. However, by combining data from multiple sources, hybrid metrics can provide a more holistic view of performance and help businesses to identify areas for improvement.
And visualizing Hybrid Metric is another topic that helps to share and discuss values from a more holistic point of view.
See here „https://hybrid-metrics.com/„
Hybrid Reporting
Wenn Sie von ESG, von „immateriellen Gütern“, von „double-materiality“ mit ihren ’nicht-monetären‘ Werteindikatoren gehört haben, sollten Sie sich das „Hybrid Reporting“ näher anschauen.
„Hybrid Reporting“ erweitert das klassisch „sequenzielle Reporting“ und zeigt gleichzeitig monetäre und/oder nicht-monetäre KPIs simultan in der Form von Vektoren an.
So wird es möglich, mehrere Wertedimensionen in die Diskussion einzubringen – in der Entscheidungsfindung alle Werte in der Visualisierung simultan zu sehen und gemeinsam zu gewichten. So erreichen Sie eine echte Wertediskussion – und nicht einen Streit ums Budget.
Beispiele und weiterführende Anregungen finden Sie auf https://HybridReporting.com
If you have heard of ESG, of „intangibles“, of „double-materiality“ with its ’non-monetary‘ value indicators, you should take a closer look at „Hybrid Reporting“.
„Hybrid Reporting“ extends the classic „sequential reporting“ and simultaneously displays monetary and/or non-monetary KPIs in the form of vectors.
This makes it possible to bring several value dimensions into the discussion – to see all values simultaneously in the visualization and to weight them together in the decision-making process. In this way, you achieve a genuine discussion of values – and not an argument about the budget.
For examples and further suggestions, visit HybridReporting.com
Neue Wirtschaftsmodelle für intelligente Unternehmen
Wenn Ihre Mitarbeiter noch mit Theorien aus der vorindustrialisierten Welt arbeiten und entscheiden, sollten Sie Ihnen die neuen Perspektiven einer Intelligenten Wirtschaft ermöglichen.
Im Projekt NEMO (New/Next Economic Model) finden Sie die Frameworks/Strukturmodelle und die neuen Massstäbe, mit denen Sie nachhaltigere Strategien und neue Geschäftsmöglichkeiten selbständig erkennen und umsetzen können.
