The management of business based on quantitative data is the most abstract way to understand businesses. It requires being able to manage the meaning, structure, and functionality of data, of the business, and of its restricted and wide contexts. Businesses are adaptive entities that require managing their functionality, dynamics, and evolution to make them successful.
It is needed to recall that most of the business problems are generated by fallacious decisions based on mismanaging data or the semiotics of data.
The empirically developed key performance indicators (KPI) might be functional or not. Their functionality needs to be confirmed considering three aspects.
- The functional actions in business are binary actions that include both the actions of a maximal and a minimum strategy. The Du Pont index described in the Annex is an example of this case.
- The syntaxis of the KPI needs to be consistent with the structure of the fundamentals defined by the ontogenetic map of a business function. See ontogenetic map of Distribution 4.0 in the Annex.
- The pragmatics of data, that define their functionality fully depends on the restricted and the wide context that establishes their framework.
The semantics of data, understanding them compared with the standards of an industry, is valid if a business has not introduced structural innovations that define it as a subcategory in an industry. The initial steps of Facebook, Amazon, Google are examples how their understanding using the KPIs of the preexistent standards failed.
Unicist data semiotics is the core of business management based on fundamentals. The measurement of the fundamentals and the consequent decision-making processes are what allows managing businesses as adaptive systems.
The Du Pont Method:
A Precedent of how Binary Actions are Measured
The Unicist Conceptual Management of adaptive environments is based on the use of maximal strategies to expand and grow and minimum strategies to ensure results and survive.
The Du Pont formula, developed in 1920, implies the existence of unicist binary actions and is a precedent of the mathematics that allows measuring their functionality.
This implies developing two synchronized actions to ensure the generation of value. These actions were named unicist binary actions because they are based on the unicist logic that allows dealing with adaptive environments. The original Du Pont Formula is a precedent of how these UBAs are measured.
There are three types of UBAs:
UBA Type 1: that integrates the influence of the environment with the specific function or object. It includes the integration of external catalysts.
UBA Type 2: that integrates the internal catalyst and the entropy inhibitor of a specific function or object, considered as a whole.
UBA Type 3: that integrates the maximal strategy and the minimum strategy of each function or object.
Each UBA includes two levels of actions:
Level a) that deals with the active function, which drives the maximal strategy of a function or object.
Level b) that deals with the energy conservation function that drives the minimum strategy of a function or object.
The process of the use of UBAs begins by developing the UBAs Type 1, which implies expanding the boundaries of an activity, continues with the UBAs Type 2, which implies using internal catalysts and entropy inhibitors, and ends with the use of UBAs Type 3, which deal with the transformation of the fundamentals of a function or objects into actions.
The Ontogenetic map of Distribution 4.0
Distribution 4.0 is a business model that foster business and market expansion by developing a forward integration with the market centrally driven by virtual tools. It applies to businesses that have differentiated products / services and are interested in establishing transparent relationships with the market.
The integration with the market is based on establishing a virtual communication channel and a virtual sharing space where the participants profit from the sharing of innovative experiences. This sharing is based on peer-to-peer communications with the members of the participating organization considering that this new stage implies enhancing the generation of value.
Growth is driven by the use of the client centered management model which organizes client orientation, value added assurance and results assurance in order to ensure growth, utility and profitability for all the participants of the value chain.
The virtual relationship building approach uses the virtual platforms that are installed to establish relationships that are as close as necessary to maintain stable bonds with the members of the participant organizations.
The Unicist Research Institute