the value creation paradigm; an alternative approach to economics, for sustainability and optimum...

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The Value Creation Paradigm:An alternative approach to Economics, for Sustainability andOptimum Liquidity of the Business Environment

ByPeter Anyebe

AGAPE

CONSULTANTS

22nd

December, 2012

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Keywords: Space, Time, Forces, Sustainability, Knowledge,

Open Source, Big Data, Social Networks

A business paradigmis presented that reduces investment into product, environment,

and process; to provide the objective basis for evaluating knowledge, information and

data; and translate these into ROI and therefore a monetary unit.
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ByPeter AnyebeAbstract

Organisations have commonly identified the human resourceas their greatest asset.

But this asset has remained fluid, since personnel are not strictly under the absolute

control of the organisation in the same way as assets are supposed to be. Another

asset that has defied clarity is information. It has not been possible to list this on the

assets column of the organisations books, and the advent ofbig data has made this

even more urgent. Thirdly Social networks, like open source, present potentials that

organisations can leverage to their advantage. Unlike open source however, quality

control is an important factor that has tended to be illusive with respect to networks.

At Agape Consultants, thegoalhas been to optimise the value of the person, orhuman-

power resource quality, HpRQ, F so as to create sustained organisational growth and a

liquefied economic environment. This required that first, 1st people are valued correctly, so

that the HpRQ, F is clearly defined. Then the enabling environmentorwork culture, C

within which optimisation is to be accomplished sustainably also needed to be clearly

defined. And thereafter, theprocedure for the performance at this task needed to be

outlined. These are summarised in the performance management platform, PmP on which

people are to be nurtured in organisations, to optimise their value. This strategy is based on a

business paradigm that presents investmentas a function ofproduct, environment, and

process. As the unit ofdata, process or procedure creates room in the assets column for

information; via the F-Scale, and the valuecreation model that links people value, C to

organisational value, ROI .

This paradigm also creates the capacity to evaluate people against their potentials, rather

than who they actually are, to present a basis for the quality control required to sustain social

networks. Thirdly, the Organisational Kit, Org-K, which is also a feature of this paradigm,

is actually a knowledge bank that provides the database for the work culture; and is at once

a reservoir of organisational knowledge, which is a concrete asset that can be documented.

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ByPeter Anyebe1.00 Preamble

In general, people are intuitive. They are able to perceive forms. Given a desire

therefore, they know intuitively that a procedurewould be necessary, and that

certain structures would be required, for fulfilment. Then they look around, to find

whether these are available or not. The decision is made thereafter, to put them in

place, or to use whatever is available even if the quality of the final product is to be

compromised. The decision to use whatever is available usually derives from the

abhorrence of the rigours associated with the establishment of new procedures and

structures. The principleby which the desire is to be fulfilled must be established, soas to define the enabling environment in which the operation can be sustained. Then

the procedure for bringing the desire into being can be outlined. This marks the

beginning ofsegmentation among people, between the takersand the creators.

While the creators go beyond theforms to putstructures in place and to outline

procedures, takers do not.

So people need to grow from being merely intuitive to become formal, for the purpose

ofsustainability. Intuition, to the extent that it stops at the perception of forms, is

restrictive, limited and has boundaries. It is therefore characteristically inefficient and

not transferable. This explains why the first, 1st

inventors like Thomas Edison, theWright brothers, and Henry Ford had to make several errors. Following theirtrial-and-

errormethodology however, the principles underlying theirinventionscould be

formalised, making creativitymore deliberate, efficient, and transferable. Given

principles, general applications become possible; even at different times and

circumstances, for sustainability. Formalisations are not merely generalisable, they can

be transferred to posterity and later generations in ways that intuition can not. The

involve the application of the waveand dualityprinciples to the thought process that

culminates in the creative act.

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Creativity, according to the conception presented above, is a function of the

following two, 2 capacities:

Rationality, Rn

Phenomenological Compression, Pc

Rationality, Rn is the capacity to reduce phenomena into a series, which comprises

the five, 5 essential components that outline the standard procedure for the

performance at task. Phenomenological Compression, Pc is more elaborate,

involving the construction of three, 3 double series to describe each of the following

processes:

Identify the product that is desired

Define the enabling environment for making the product, so that the process

is not truncated midway and the product, botched.

Derive the procedurefor the creative process

While Rn culminates in the derivation of seven, 7 items, Pc requires that each of the

three, 3 steps culminate in the derivation of thirteen, 13 items; giving a total of forty,

40 items, inclusive of the phenomenon being described. This is demonstrated on the

concatenation model. A person who is at once rational, and is able to do

phenomenological compression is determinate. Such people are predictable, to the

effect that they are able to respond, RES to stimuli appropriately, RGT or not, forRES

= RGT asNu 4. This is theproductivity model.Nu is a measure of the number,Nu of essentials that a person is able to identify, of the expected five, 5. The standard

derives from theperception model of mind, PMMas follows:

People who are creativecan be predicted, they are self-contained; being objective,

determinate and without boundaries.Takersare not. Serially:

3. Rn Net-Worth, f0

2. Determinacy 6. Wave Principle

1. Desire 5. Duality Principle

4. Pc

f0 = 4(11/z),

z = (41/f1)f1 =Perception I ndex, N = 5

f0 =Sensation Index, N=1

The Objectivity Series
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2.00 HpRQ, F

Recall the productivity model as follows:

Thus, apart from being creative in a way that involves the application ofRn and Pc, thequality human-power resource, HpRQ, F would usually be able to summarize the creative

act into the four, 4 basic principles that are required to make a product or provide a service,

according to specifications. This provides a basis for evaluating HpRQ, F by the F-Scale

presented below:

Objectivity, f0ornetworth is defined as the capacity to approximate this standard. Recall

that by the wave model, a phenomenon is adequately defined by two, 2features, including

sizeand location. The analogue of these features with respect to creativity includes

development and growth respectively. Each of these is split into its two, 2 components to

outline the four, 4 items on the duality seriesas follows:

Maxima,Impulse

Minimax, Nature

Maximin, Nurture

Minima, Sustenance

Recall also that being is defined by the essential elements that constitute phenomena. When

these elements can be identified therefore, it would be sufficient evidence that the person is

able to create the phenomenon in question. The four, 4 items on the duality series adequately

define the being of phenomena. After the trial-and-errorof the Wright brothers for instance,

making airplanes was reduced into the following four, 4 principles which, when applied,

culminates in the making of the aero plane:

Thrust,

Drag,

Weight and

Lift

RES =RGT,

Nu 4Ps 20%

RES = Response to Stimuli

RGT = Appropriateness of Response

Nu = Number of Essentials Identified

Ps = Position on the Pareto 80-20 Continuum

Development Growth

f0 = Objectivity Index

Sn = Score on the Item-n (n = 1 to 4)

D = Observed Deviance

X = Expected Deviance

E = Expected Rank on Item-n

B = Observed Rank on Item-n

f0= 1/10Sn,Sn = XD

D = Abs |EB|

X = G: G A

X = A Otherwise

G = 5E

A = 5B


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These are the basic concepts of aerodynamics.Thrust is what moves a vehicle

forward, while drag comes from air moving across the surface of the vehicle,

offering resistance and slowing it down. The weight of the vehicle pulls it toward the

ground; lift is air under the wing of an airborne vehicle that forces it upward. Notice

that while the first two, 2 are locational, the other two, 2 define the size feature of the

wave model. Similarly, a 4-cycle gas engine works on the following principles:

Suck: The engine sucks in an air/fuel mixture into the combustion chamber

Squeeze: The air/fuel mixture is compressed into the combustion chamber

Bang: The spark plug creates a spark and ignites the air fuel mixture

Blow: The spent gases are exhausted through the exhaust system

Notice that these components also satisfy the wave model, which is actually a

deduction from the general principle of being presented below:

Thus matter exists in spaceand time, which requires that the features ofsizeand

location respectively, are fundamental. Moreover, energywould be required to fill

up the space, as well as cruise through it. These characteristics are contained at once,

in the principles that define force, which is the fifth item in the series. Physics

recognizes the following four, 4 forces as basic:

Gravity, g

ElectromagnetismTerrestrial

Gluon, G

Gluon is required to hold the components of matter together(fusion?), several of

which compact together to occupy space. This is also a root source of energy, which

is released byfission, when the components are split or ripped apart. In general, this

happens at two, 2 levels.Terrestrially, as in evaporation, the separated particles drift

away slowly, in time but over long distances, inspace. While time is irrelevant,

space is important in this process. Inversely however with electromagnetism, the

3. Energy Being

2. Time 6. Nature

1. Space 5. Force4. Matter


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motion of split particles is fast, but covers a limited distance. These two, 2 forces

create a contradiction that makes time difficult to measure especially at the micro

level. But when location is defined, both space and time are accounted for. Gravity

ensures that the particles that have been ripped apart do not fall overboard. It keeps

them together within the given space, albeit differently from how gluon operates.

Although they are notglued, they are heldtogether in one piece.

3.00 Knowledge

In general, it has been acceptable to define knowledge asjustified true belief. This

means that knowledge has to be actionable, cannot be false, and must be well

founded. This conception is represented below in theEula diagram:

Despite the observed trend in the history of epistemology, in which this definition appears to

have been contradicted, it remains fundamental to creativity and phenomenological

compression. Firstly, processesand procedures are actionable. Beliefwould therefore appear

to be operationalised in process or procedure. Secondly when procedure is standardized

according to the natural order, N-O, it acquires the status oftruth. Thirdly, the N-O at onceprovides the basis forjustification. When the N-O is approximated, the perspective that is

presented is justified, true and can be believed. It therefore passes forknowledge. This is

what the F-Scalemeasures. Moreover theN-O, which is operationalised in the standard

procedure series, at once describes to characterizeand procedurisesphenomena. This

format defines the what, as well as the howof phenomena, which represent the size and

location of the wave model respectively. To knowtherefore, it would be sufficient to be

rational and to do phenomenological compression. It would be sufficient to outline the

standard procedure series.
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This capacity is acquired bylearning. Given a desire, which is resident in the

emotion, it remains dormant until the will is drafted into the deal. This is when all the

energy that is required for the fulfillment of the desire is released. The energy is

applied to the following two, 2 processes:

To derive theprocedurefor desire accomplishment, CWk

To overcome the obstaclesin the way of this process, CNd

Then, C = CWk + CNd, where Cdefinescommitment,will power or the strength of will.

However, it is the intellect that plots the procedure, albeit under the guidance of the

will, which sustains the process. This means that the typical learning process

culminates in the derivation of the procedure for the performance at the task that has

been learned. And learning happens when there is a desire or something that is

valued, to be fulfilled. This creates a continuum between values, belief, and value.

Values or the value systemare the source of the energy that drives the continuum,

which is expended in the formation of a belief systemthat determines the valueor

quality of product that is created. The system of beliefs would therefore constitutethe persons perspectives of phenomena, which is actually a body of knowledgethat

has been accumulated according to the experiences; from the first breath at birth, to

the last breath at death. The body of knowledge is also thesoul.

Following Einsteins energy model, e =mc2, energy, e and mass, m are equivalent

concepts. This means that given the appropriate procedure, it would be possible to

convert one into the other. In practice, this means that when mass is split, energy is

released equivalently. The reverse also holds that when mass is formed, energy is

accumulated. Then, soul is actually a mass of energy in storage. It is the source

from which the formation of personality is funded; in a sub continuum that links

soul, Scharacter, C and personality, F . The factors-C, which defines values orstrength of will, and the factor-C, for character, have been found to correlate exactly,

at r =1. Notice that this sub continuum actually defines belief, the link between

values and value. The following three, 3 value types have been recognized:

People value, C

Organizational value, ROI and the

Value of the business environment, EB
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The ROI has been linked with the factor-C and the EB is derived as the inverse of

reward, which links it also to the facto-C. These links are an objective basis for

putting a value on knowledge, process, ordata; which have been presented as

synonyms with respect to creativity, rationality and phenomenological compression.

And this, in a business paradigm that distinguishes between the following three, 3

features of investment:

Product

Environment

Process

Thus forinvestment to be sustained, the product that is to be made or service to be

provided must be clearly specified, according to what the end users need. If the

product or service is to scale the six sigma,6test then the enabling environmentmust also be created. This includes the provision of equipment and machinery to lay

out the production line; as well as the power and personnel that are required to work

the line. The environment would also include the sales and marketing force to ensure

that product and services get to the end user. Thirdly, the production process that is

to be followed must be clearly outlined, which is necessarily different from the first,

1st

two, 2 features. There is no guarantee that personnel possess the knowledge of the

required production process. Often, learning and development, L & D is saddled

with the responsibility of equipping staff with this capacity. Given the persons initial

facto-C, the C-Scoreat the end of any training function defines the value added. And

this is translated into ROI on the following model:

This is the value creation model, and the reward model, Rw is presented as follows:

ROI =2X1,

X =1 / (11 / C)

EB =Rw / 2,

Rw = (Nu x CRD),CRD = 27 / P4

EB =Business Environment

Rw= Reward

CRD = Credibility

Nu = f1, Derived on the PMM

P4= The Strength of Will

27= Optimum of the Strength of Will


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4.00 The Organizational Kit

After the personnel have been trained, to make them into the asset that the

organization requires, according to the ROI they contribute, again, there is no

guarantee that they can be retained without extra cost to the organization. But it is

not the person of the staff that is the asset in this case; rather, it is theirperspectiveof

the job function into which they are employed! Recall the distinction between soul, S

character, C and personality, F in the sub continuum that defines belief. When these

perspectives are collated, the organization at once has two, 2 advantages as follows:

A knowledge bank, which becomes

A physical asset

The quality of the knowledge bank becomes the index of retention. It is also an asset

that can be quantified, according to how much investmentwas made in putting it

together; as well as how much value it is able to create in terms ofROI .

Ellis BookerinInformationWeekhas raised the question of the worth of anorganisations big data. Like the observed connection betweensocial networks and

open source that is hinged on quality control, big data and the knowledge revolution

are connected by process. EllisquotesDoug Laney, VP, analytics & information

management at Gartneras saying that information has a discernible value, one that

should be accounted for on a company's books. Laney is said to be best known for

his influential researchnotein 2001 that framed big data in terms of the three V's

including volume, velocity and variety, which lend it toanalyticsin business

intelligence. And Gartner has defined four levels of business intelligence

sophistication to include descriptive, diagnostic, predictiveand prescriptive.According to Laney, in the final prescriptive stage, "[companies can] take insights

and predictions to make something happen." At this level, data is transformed into

knowledge, together with its characteristics as justified true belief. It becomes

actionable and testable, to confirm its truth status.

Theorganisational kit, Org-Kreduces the organisations essentialjobs into duties,

activities, and tasks; the procedurefor the performance at which are then

standardised, to create the data bank. The essential jobs are defined to operationalise

the organisations values, as presented in the vision and mission statements.
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Cascading these to derive the standard procedures reduces the system of values into a

system of beliefsto form the kernel of the organizations culture. These can then be

transferred by the learningprocess, in timeand space, respectively to later

generations of personnel and current staffers who may not have these experiences.

5.00 The Knowledge Revolution

Elsewhere, it has been argued that the industrial revolution must be understood in

terms of the exposure of the human inefficiency in a formal way that removed it from

the domain of intuition, which could easily be abused via deception. By this model

therefore, this revolution would be acknowledged as culminating in the concepts of

the management by objectives, MBO, the balanced score card, BSC and later, the

six sigma, 6all of which recognise the processas the kernel of efficiency. Theseconcepts moved the industrial revolution from its usual domain in the technology of

the leverto the realm of the efficiency of theprocess.

Similarly, the knowledge revolution would actually be an extension of the

information revolution. It is an end product that removes the emphasis from

technology and focuses it rightly onprocess, which is the unit ofdata, by which

information is operationalised. This is to conclude theKantiansecret plan that

nature has nurtured, to date. The institutionalisation of a culture that is able to

optimise the HpRQ, F . The knowledge revolution is not merely another revolution; it

is a continuation of the information revolution in a way that extends it beyond the

tangible to its intangible benefits, from the object, to the form, from the GSM and

internet, to the process. This makes information, and therefore knowledge,measurable so that they can be valued in monetary terms via the ROI .

6.00 Concluding

Following the possibility of putting a valueon people according to the extent to

which they have or have not fulfilled their potentials; according to what they ought

to be rather than what they are observed to be, the distinction has been made

between intuition and formalisation and between takersand creators respectively.
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Thus everybody is intuitive, but not every person is formal; although this is a

possibility that everyone can desire and aspire to be. Given this scenario, consider

that the 99%are takers and only 1%of the people are creators. By the Pareto

principle also, distinction is made between the 80%ters who arefollowers and the

20%terswho are the leaders in organisations. Then, if takers and followers are

merely intuitive, despite which they form the majority of humans, can data that is

derived from social networks be trusted? Even more important than this, can social

networking be sustained, or is it merely another fad that will soon pass? Should

humans also become flies because a million flies eatshit? In a rat race, is the winner

any thing else, other that a rat?

The F-Scale resolves this quandary by providing a measure forrationality, Rn that

can be adapted to qualify voters on networks, to determine the value of the network

in terms ofROI . This brings social networks to the same level as open source,

where contributions are acceptable only because they add value.

The organisational kit, Org-Kis also a double barrel. It creates a knowledge bank

that enables the organisation to retain its human resource as assets, to do with it as it

wishes; and at once include process formally on the asset column of its books.

Moreover, the value of big data can now be determined objectively.

The following chart summarises the two, 2 continuums that operationalise the

conversion ofknowledge as process, into a commodity that can be valued in ROI

and monetary terms:

Values Value(s)

Pc

Rn, f0(Vc, n) S C F, Po (Nu, Ps)

ROI, EB

BeliefRES RGT

The Belief and Character Continuums

Rn= Rationality

Pc= Phenomenological

Compression

Vc= Index of

Professionalism

n = The StandardProcedure Index

S= Soul

C = Character

F = Personality

Po= Power Index

f0= Objectivity

Nu= Number of Essentials

Ps= Position

RES = Response to Stimuli

RGT = Appropriateness of

Response

ROI = Return on Investment

EB = Value of Business

Environment

the value creation paradigm; an alternative approach to economics, for sustainability and optimum...

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