Market Growth: Ensuring the Commercial Critical Mass of Businesses

Having the necessary critical mass to influence the market is necessary to build structural growth. Commercial critical mass uses the fundamentals of social critical mass to build concrete commercial actions that allow influencing the market.

Commercial Critical MassSocial critical mass applied to marketing is the integration of:

  • Superior aesthetics, which implies satisfying the manifest and latent needs of the potential customers.
  • Superior influence which allows stimulating the buying process
  • Superior credibility which implies that the superior value propositions are sustained by an adequate authoritative context.

The commercial critical mass building integrates:

  • Installing superior product/service attributes that are perceived as attractive by the market.
  • Building product/service brand attributes to differentiate the value propositions and influence potential buyers..
  • Building institutional brand attributes that sustain the credibility of the product brand attributes.

The use of critical masses requires a segmented approach that has to consider the functional, psychological, conceptual and lifestyle segmentations to ensure the functionality of the critical mass. These segmentations need to be transformed into profiles in order to be used by everyone.

Having a critical mass to influence buyers is a basic condition to be considered as the first choice in the mind of the potential buyer. To build commercial critical masses it is needed that the responsible person feels that s/he has a critical mass in the environment.

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.
http://www.unicist.org/turi.pdf

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Unicist R&D: Small Business Development

This synthesis is the conclusion of a research that has been done for more than 20 years dealing with more than 30 small businesses having a revenue between 1,0 to 20,0 million dollars in countries that included the USA, Italy, UK, Germany, Spain, Brazil and Argentina. The objective of the research was to find which technologies are suitable for small businesses and which are their limits for the development of these companies.

Revenue is the simplest way to define the size of a business, but its nature is given by its critical mass in the market, which is defined by the power of its brand. Small businesses are whether small, stagnated or start-up businesses.

The majority: The Archetype of Stagnated Small Businesses

Stagnated small businesses are such because their final goal is to appropriate as much as they can from the market justifying these profits by doing what they can, without considering what is needed.

Stagnated Small Businesses  Their actions are driven by their owners who exert their power to ensure survival and establish the subjective limits of the actions within the company.

These companies cannot grow, because growth requires delivering differentiated added value to the market which does not allow doing what can be done and demands doing what needs to be done.

These types of companies cannot organize their functional business processes because they affect the subjective environment to survive. They have no organized management and they work in what we named as “business feudalism” where the subjective leadership of the owner has to prevail over the functional needs of the business.

Stagnated small business can only deal in marginal low productivity niches. In competitive environments they tend to disappear. They do not the possibility of surviving after their owner dies. They are built “around” the owner like a feud.

These companies need to develop a subjective environment that allows building a parallel reality where the utopias of the future replace the functional data of the present.

They minimize the tools they use in order to allow the participants to develop their activities based on their personal way. The owners monitor them based on the cash-flow of the company which, in the short run, ensures their survival.

The minority: The Archetype of Small Businesses

A business is small when the CEO/Manager/Director has the intention and is able to influence personally the people that work in the company. This implies that small business have necessarily hands-on managers that have the capacity of leading the group through their actions.

Adapted Small Businesses They are centrally focused on profits and they do what is needed to obtain them. They are an adaptive entity that strongly depends on the capacity of the leader to understand what happens in the environment and transform it into business processes that have to be followed by the participants.

Small businesses are such because they intend to occupy a space in a niche or segment of the market, have an organization that is autonomous from the owner and have the capacity to learn from their mistakes avoiding their repetition.

Their weak point deals with the understanding of the critical mass they need to have to achieve their goals. That is why they frequently build the necessary justifications for their dysfunctional actions.

Small companies can assume a leading role, the role of a secondary leader or a non-influential role in the market. The role they assume depends on their capacity to influence the niches they work with.

Their growth capacity depends on the size of the niche or segment they work with and on the positioning of the competitors. These companies tend to be absorbed or disappear when the niche they work in becomes attractive for large companies.

They have a functional organization without definition of roles and they are users of operational tools that allow them develop the work processes that are basically driven by tasks while the objectives are monitored by the CEO.

The few: The Archetype of Start-up businesses

Start-up businesses are such because of their capacity of generating differentiated value for the segment they work in. These businesses are focused on a niche where they have a superior level of knowledge and value generating capacity. They supersede competitors based on their market orientation and technology.

Small Start-up Businesses Profiting is a secondary goal in these types of companies. That is why it is frequent that the participation of investors, who believe in the business model, introduces an upgrade to their profit orientation in order to move them from a small company to a medium or large organization.

They begin by having the same characteristic of any other small business, meaning they have the business separated from the owner and they know they have to do what is needed in order to be able to grow.

Start up businesses work as an entrepreneurial venture but have, deep inside, the values that allow them become an organized enterprise. They are extremely focused on the market which includes a superior learning capacity to adapt their possibilities to the needs of the market. They are a learning organization that feels proud for the value they add to the environment.

The separation of the role of owner from the role of CEO is basic in this type of companies. In the early stages of these companies this separation might require that the same person works as a CEO in the company while he sits as an owner at home.

They have structured functional roles and organized processes in order to be able to learn from the environment and sustain the differentiated value they add to the market. But it has to be considered that, while they are small, they are CEO dependent.

Conclusion: Turnaround of Stagnant Small Businesses

During these years we had the opportunity to deal with 5 stagnant small businesses (the names are confidential). The results of this process demonstrated that it is extremely difficult to transform stagnant small businesses into adapted small or medium businesses.

Size of BusinessesFortunately this was possible in one case. Two companies left the market and 2 others are still struggling to survive. The nature of stagnant small businesses does not fit into the central business world. It only fits as transitory opportunity in marginal niches of low cost products and services.

Stagnant small businesses are necessarily over-adapted which means that they try to work in an environment they dominate, where they submit to the needs of the customers while they oppose to all things that endanger their position or works as a mirror of their real positioning.

Changing stagnant businesses is an extreme change for the owners, which requires that they change the personal relationship they have with “their” company.

There is no separation between the business and the owners of these types of businesses. The separation of this role implies that the beliefs of the owner need to be replaced by the needs of the market.

The change of these companies requires changing the collective intelligence of a company that is only possible by absorbing it by another company that has the necessary values.

This change is possible when the company is absorbed by a start up business which includes it as a division of the new company. This absorption requires that the owner is replaced by a CEO who might or not be also the owner of the company but the subjective environments is replaced by a functional environment. When it is absorbed by a medium or large company the small business disappears.

The greatest difficulty to deal with these companies is that their members can only listen to those who share their subjective opinions and there can be no room for aliens in this parallel world because they endanger their existence.

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.
http://www.unicist.org/turi.pdf

Unicist Strategy: The Past and the Future are not symmetric

Future can only be managed knowing the fundamentals that rule it. The Unicist Standard was developed to influence reality in order to make a “future” happen.

The “future” (fundamentals) drives action and the “past” (technical analytical knowledge) sustains the energy conservation.

Maximal strategies are driven by the knowledge of fundamentals and minimum strategies are sustained by the technical analytical knowledge.

Future scenarios, diagnoses, strategies and business organization are typical activities that deal with the future. As past and future are not symmetric, a different result can only be achieved if the fundamentals are managed.

Fundamentals are, by definition, the functional description of the essences (the nature) of a specific reality and require an extreme effort of abstraction in order to “grasp” them.

This abstraction is what we call unicist reflection which is necessary to apprehend the nature of something. The core of the reflection process is the confirmation of the hypothetical fundamentals with the necessary “pilot tests” which are real actions in the environment.

The Unicist Standard implies managing the fundamentals of reality to influence the future and having the necessary technical-analytical knowledge to deal with the present based on the past.

It all begins with the knowledge of the fundamentals to find out if the desired future is possible. This is an extreme abstraction effort to deal with a non-symmetric solution.

Only those who need to influence the future in their environment need to deal with fundamental analysis. This is a precondition to apprehend the Unicist Standard.

Those who are used to working with the “benchmarks” of the past are threatened by this technology. They cannot deal with the innovation that is implicit in the future.

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.
http://www.unicist.org/turi.pdf

Architecture, conceptual design and process automation

The first aspect to be considered is to relate the architecture of a given reality with its conceptual engineering. Conceptual engineering defines a problem’s architecture. To do so it is necessary to structure the ontology of that reality.

Architecture is used to define the concepts of a reality materializing them as solutions, within the possibilities of existing knowledge.

Redesigning the automation of a process implies restructuring its functionality in terms of effectiveness.

Effectiveness = Efficiency*Efficacy*Automation

The concept of effectiveness was discovered at the beginning of the seventies.

The first approach to effectiveness was adding efficiency plus efficacy to achieve the best possible result.

It was an empirical solution developing work processes optimizing the efficiency of the systems and the efficacy of humans.

In those times people were trained to develop the necessary skills to manage the working processes.

The results of this theory were inconsistent. “Change resistance” was the natural explanation for inadequate results.

The research of effectiveness, considered as a complex system, showed that its components should not be added, but integrated. Integration means conjunction. Conjunction, in mathematical terms, means multiplication.

This was the first approach to ontological analysis of working processes, integrating its three components, considered in those times as variables, which at the end were defined as the functions of a concept.

Analyzing a working process from an ontological point of view implies recognizing a different reality of workflow. It is much more flexible and offers much more possibilities than the empirical addition of efficacy + efficiency.

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.
http://www.unicist.org/turi.pdf

The time for fundamental analysis has come back

The European Crisis demonstrated a lack of risk management in the wide sense. Fundamental analysis has been left aside. Fundamental analysis is based on the ontological structures of a functional entity and allows forecasting its behavior. When it is integrated with technical analysis it provides fully reliable information for risk management.

Fundamental analysis was an early technology to manage opportunities and risks, but mathematical solutions were consistent enough to displace and transform it into a subjective and perhaps intuitive approach to opportunity/risk management.

It has to be considered that human adaptive systems have a three dimensional structure following the ontogenetic intelligence of nature.

An ontological approach is necessary to deal with opportunities and risks in the field of adaptive systems in order to manage their three dimensional ontogenetic algorithms.

As it is known, mathematical models for adaptive systems are necessarily based on “ceteris paribus” or empirical solutions that are based on historical information with sophisticated projections.

That is why we consider that time has come to integrate technical analysis with fundamental analysis to provide reliable diagnoses and prognoses to the markets. This will surely prove a security framework that will bring relief to them.

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.
http://www.unicist.org/turi.pdf

Peopleware: the integrator of hardware and software

Peopleware is defined by the structure of objects that individuals have in their minds which define the models they use when dealing with hardware and software at work. It  provides the necessary information to transform business architectures into operational business models.

Peopleware is what allows integrating hardware and software providing the true driver of the business model.

It is necessary to understand the organizational equilibrium laws, the natural organization and the object driven business model in order to manage peopleware.

When peopleware has been defined and adequate aesthetic use of software with a solid hardware will make business processes operational.

Peopleware is perhaps the most significant development to provide business operational solutions to companies.

It allows transforming administrative systems into adaptive systems to upgrade work processes when managing businesses as unified fields.

Peopleware provides the utility to operational business models allowing software to be user friendly (aesthetic for the user) and the functionality of hardware to become solid.

By definition, an approach that deals with the deepest human drivers to work is abstract. This abstraction needs to be apprehended in a reflection process to approach solutions for work processes.

Peopleware is business architecture applied to work process design. Therefore, it is for people who have a sound knowledge of the business that is being modeled.

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.
http://www.unicist.org/turi.pdf

Physicians and experts need to manage two languages

Like in Medicine, experts and consultants need to manage two languages, one to deal with the diagnoses and one to communicate with “patients”.

Medical practice deals with an extremely complex adaptive system: the human being. Therefore physicians need to mange two languages: one to deal with science and one to communicate with patients.

Medicine, as all the activities that deal with adaptive systems, requires the use of two languages: one to mange the “system” and one to deal with the “patient”.

The same happens with the unicist approach, it requires the use of conceptual language to deal with the business objects and plain language to communicate with clients.

A critical mass can only be achieved if these two languages are managed:

The Power of Technology

(Business objects – Conceptual language)

&

The Power of Simplicity

(Unicist approach – plain language)

&

The Power of Action

(Facts – Factual language)
______________________________

Critical Mass = Results

Managing unicist ontology based and object driven technologies requires the use of conceptual language. It generates The Power of Technology.

The Power of Simplicity can only be achieved using plain language. Finally, The Power of Action uses factual language.

Therefore, when credibility is given, users do not need to mange the unicist technologies, just their applications. That is the way results are achieved.

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/turi.pdf

The Unicist Confederation is organizing spin-offs

The market expansion of the Unicist Confederation is organized based on corporate and professional spin-offs.

Corporate spin-offs are business units that are installed in companies to provide solutions for their markets and activities.

The business units might be insourced or outsourced.

The professional spin-offs are developed by partners that have a Unicist R&D business unit to research the adaptive aspects of businesses in order to develop diagnoses, strategies, architectures and install business platforms and business objects for end clients.

The Unicist Confederation is the business arm of The Unicist Research Institute, a pioneer in complexity science research that changed the paradigms in the business world.

Learn more: http://www.unicist.org/sdp.shtml

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/turi.pdf 

The Unicist Institutional Maturity Model for Businesses

The maturity of an organization defines the company’s capacity for growth. The Unicist Institutional Maturity Model (UIMM) has been developed to define the type of strategies and architectures that can be used in a company. The higher the maturity level the more expansive a business can be.

UMSUnicist Institutional Maturity Model – UIMM

There are two entrepreneurial approaches, level A and B that are considered the initial maturity stage of a company.

A) Money driven Organizations

Their goal is to profit from the environment in a materialistic way. They are driven by individual monetary goals and manage the business driven by their cash-flow.

B) Power driven Organizations

Their goal is to obtain profits following the subjective rules of their owners. They are entrepreneurial organizations driven by the need to follow the non-structured orders of the entrepreneurs.

1) Materialistic driven Institutions

Their everyday activity is driven by the guidelines that are strictly followed to ensure the operational results.

2) Ideology driven Institutions

Their everyday activity is driven by strict rituals and methods that materialize the ideology. They establish a defined path to behave within the rules.

3) Value driven Institutions

Their everyday activity is driven by the methodologies they have. They are strict in the application of their methodologies, which implicitly include the vision of their activity.

4) Transcendence driven Institutions

In a transcendence driven institution the institutional vision is used in everyday activity. It has flexible methodologies to apply the vision but strict methods to follow the operational rules.

The maturity of an organization evolves based on the functionality and success of its rules and procedures. The flexibility of its business processes is a consequence of having achieved an adequate reliability level in the application of the methods.

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.
http://www.unicist.org/turi.pdf

Open Lecture on Unicist Superior Education: 5-16-2014 – 3:00 pm ET

By Peter Belohlavek – Superior Education is defined as the activity that deals with the acquisition of knowledge to manage the complex adaptive aspects of the environment. This is a lecture on the Unicist Logical Approach to Strategy applied to superior education and its comparison with professional education. We recommend accessing: http://www.unicist.org/repo/#Education

Unicist Press Committee