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The Value Creation Paradigm: An alternative approach to Economics, for Sustainability and Optimum Liquidity of the Business Environment
Keywords: Space, Time, Forces, Sustainability, Knowledge, Open Source, Big Data, Social Networks

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By Peter Anyebe

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A business paradigm is 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.

22nd December, 2012

+234-703-430-2486

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

Peter Anyebe

Abstract
Organisations have commonly identified the human resource as 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 of big 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, the goal has been to optimise the value of the person, or humanpower 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 environment or work culture, C within which optimisation is to be accomplished sustainably also needed to be clearly defined. And thereafter, the procedure 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 investment as a function of product, environment, and process. As the unit of data, process or procedure creates room in the assets column for information; via the F-Scale, and the value creation 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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The Value Creation Paradigm: An alternative approach to Economics, for Sustainability and Optimum Liquidity of the Business Environment
By

Peter Anyebe

1.00

Preamble

In general, people are intuitive. They are able to perceive forms. Given a desire therefore, they know intuitively that a procedure would 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 principle by which the desire is to be fulfilled must be established, so as 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 of segmentation among people, between the takers and the creators. While the creators go beyond the forms to put structures in place and to outline procedures, takers do not.
So people need to grow from being merely intuitive to become formal, for the purpose of sustainability. 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, the Wright brothers, and Henry Ford had to make several errors. Following their trial-anderror methodology however, the principles underlying their inventions could be formalised, making creativity more 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 wave and duality principles 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 procedure for 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, for RES = RGT as Nu 4. This is the productivity 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 the perception model of mind, PMM as follows: f0 = 4(1 1/z), z = (4 1/f1)
f1 = Perception Index, N = 5 f0 = Sensation Index, N= 1

People who are creative can be predicted, they are self-contained; being objective, determinate and without boundaries. Takers are not. Serially:
3. 2. 1. 4. Rn Determinacy Desire Pc Net-Worth, f0 6. Wave Principle 5. Duality Principle

The Objectivity Series

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HpRQ, F
RES = RGT, Nu 4 Ps 20%
RES = Response to Stimuli RGT = Appropriateness of Response Nu = Number of Essentials Identified Ps = Position on the Pareto 80-20 Continuum

Recall the productivity model as follows:

Thus, apart from being creative in a way that involves the application of Rn and Pc, the quality 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:
f0 = 1/10Sn, Sn = X D D = Abs |E B| X = G: G A X = A Otherwise G=5E A=5B
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

Objectivity, f0 or networth is defined as the capacity to approximate this standard. Recall that by the wave model, a phenomenon is adequately defined by two, 2features, including size and 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 series as follows: Maxima, Impulse Minimax, Nature Maximin, Nurture Minima, Sustenance

Development

Growth

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-error of 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

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: 3. 2. 1. 4. Energy Time Space Matter Being 6. Nature 5. Force

Thus matter exists in space and time, which requires that the features of size and location respectively, are fundamental. Moreover, energy would 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 Electromagnetism Terrestrial 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 by fission, 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, in space. While time is irrelevant, space is important in this process. Inversely however with electromagnetism, the

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 not glued, they are held together in one piece.

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Knowledge

In general, it has been acceptable to define knowledge as justified true belief. This means that knowledge has to be actionable, cannot be false, and must be well founded. This conception is represented below in the Eula 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, processes and procedures are actionable. Belief would 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 of truth. Thirdly, the N-O at once provides the basis for justification. When the N-O is approximated, the perspective that is presented is justified, true and can be believed. It therefore passes for knowledge. This is what the F-Scale measures. Moreover the N-O, which is operationalised in the standard procedure series, at once describes to characterize and procedurises phenomena. This format defines the what, as well as the how of phenomena, which represent the size and location of the wave model respectively. To know therefore, it would be sufficient to be rational and to do phenomenological compression. It would be sufficient to outline the standard procedure series.

This capacity is acquired by learning. 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 the procedure for desire accomplishment, CWk To overcome the obstacles in the way of this process, CNd
Then, C = CWk + CNd, where C defines commitment, 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 system are the source of the energy that drives the continuum, which is expended in the formation of a belief system that determines the value or quality of product that is created. The system of beliefs would therefore constitute the persons perspectives of phenomena, which is actually a body of knowledge that 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 the soul. 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, S character, C and personality, F. The factors-C, which defines values or strength 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

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, or data; 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 for investment 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, 6 test then the enabling environment must 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-Score at the end of any training function defines the value added. And this is translated into ROI on the following model: ROI = 2X 1, X = 1 / (1 1 / C) This is the value creation model, and the reward model, Rw is presented as follows: 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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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 their perspective of 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 investment was made in putting it together; as well as how much value it is able to create in terms of ROI. Ellis Booker in InformationWeek has raised the question of the worth of an organisations big data. Like the observed connection between social networks and open source that is hinged on quality control, big data and the knowledge revolution are connected by process. Ellis quotes Doug Laney, VP, analytics & information management at Gartner as 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 research note in 2001 that framed big data in terms of the three V's including volume, velocity and variety, which lend it to analytics in business intelligence. And Gartner has defined four levels of business intelligence sophistication to include descriptive, diagnostic, predictive and 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. The organisational kit, Org-K reduces the organisations essential jobs into duties, activities, and tasks; the procedure for 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.

Cascading these to derive the standard procedures reduces the system of values into a system of beliefs to form the kernel of the organizations culture. These can then be transferred by the learning process, in time and space, respectively to later generations of personnel and current staffers who may not have these experiences.

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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, 6 all of which recognise the process as the kernel of efficiency. These concepts moved the industrial revolution from its usual domain in the technology of the lever to the realm of the efficiency of the process. 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 on process, which is the unit of data, by which information is operationalised. This is to conclude the Kantian secret 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.

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Concluding

Following the possibility of putting a value on 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 takers and creators respectively.

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 are followers and the 20%ters who 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 eat shit? In a rat race, is the winner any thing else, other that a rat? The F-Scale resolves this quandary by providing a measure for rationality, Rn that can be adapted to qualify voters on networks, to determine the value of the network in terms of ROI. This brings social networks to the same level as open source, where contributions are acceptable only because they add value. The organisational kit, Org-K is 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 of knowledge as process, into a commodity that can be valued in ROI Rn = Rationality and monetary terms:

Values

Belief RES RGT Pc

Value(s)

Rn, f0 (Vc, n)

C ROI, EB

F, Po (Nu, Ps)

The Belief and Character Continuums

Pc = Phenomenological Compression Vc = Index of Professionalism n = The Standard Procedure 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