Beyond GDP - New Standards of Success for the Growth and Development of Economies and Enterprises.
The intrinsic growth determines the future of enterprises and economies.
Business Engineering Timeline (German, partly English) Rev.2014/08Peter Bretscher
Timeline of economics theory, mindset....
Part of "Project NEMO" (New/Next Economic Model)
http://project-nemo.org
and
INSEDE (Institute for Sustainable Economic Development)
http://insede.org
and "Business Engineering Systems" (Set of Tools for next Gen. Business Administration"
http://bengin.net/bes/
This document discusses human development and the human development index (HDI). It defines growth and development, explaining that development refers to qualitative improvements. The key areas of human development are access to resources, health, and education. The HDI is a composite statistic used to rank countries on indicators like life expectancy, education, and income. India's 2014 HDI ranking and component values are provided as an example calculation. International HDI comparisons and trends in India's HDI over time are also summarized.
Thoughts (models, means, tools, inspirations...) for a complementary view to the Classic Economic Mindset.
Integrates subjective value metrics, intellectual assets, economic energy and power...
Part of "Project NEMO" (New/Next Economic Model)
http://project-nemo.org
This document provides an introduction and overview of a textbook on closed-economy macroeconomics. It begins by explaining why closed-economy analysis is still relevant despite most real world economies being open. It then outlines some basic macroeconomic concepts like the components of the capital stock, which include physical capital, human capital, knowledge, and money holdings. The document concludes by stating the textbook will develop macroeconomic theory from the classical model to the Keynesian model to a modern unified treatment.
Beyond GDP - New Standards of Success for the Growth and Development of Economies and Enterprises.
The intrinsic growth determines the future of enterprises and economies.
Business Engineering Timeline (German, partly English) Rev.2014/08Peter Bretscher
Timeline of economics theory, mindset....
Part of "Project NEMO" (New/Next Economic Model)
http://project-nemo.org
and
INSEDE (Institute for Sustainable Economic Development)
http://insede.org
and "Business Engineering Systems" (Set of Tools for next Gen. Business Administration"
http://bengin.net/bes/
This document discusses human development and the human development index (HDI). It defines growth and development, explaining that development refers to qualitative improvements. The key areas of human development are access to resources, health, and education. The HDI is a composite statistic used to rank countries on indicators like life expectancy, education, and income. India's 2014 HDI ranking and component values are provided as an example calculation. International HDI comparisons and trends in India's HDI over time are also summarized.
Thoughts (models, means, tools, inspirations...) for a complementary view to the Classic Economic Mindset.
Integrates subjective value metrics, intellectual assets, economic energy and power...
Part of "Project NEMO" (New/Next Economic Model)
http://project-nemo.org
This document provides an introduction and overview of a textbook on closed-economy macroeconomics. It begins by explaining why closed-economy analysis is still relevant despite most real world economies being open. It then outlines some basic macroeconomic concepts like the components of the capital stock, which include physical capital, human capital, knowledge, and money holdings. The document concludes by stating the textbook will develop macroeconomic theory from the classical model to the Keynesian model to a modern unified treatment.
This document is Ezekiel Peeta-Imoudu's final year project which tests the validity of the Capital Asset Pricing Model (CAPM) using volatility on the London Stock Exchange from 2001-2010. The project provides a literature review on the CAPM theory and debates around its validity. It then empirically estimates beta for 12 selected companies using statistical tests like paired sample t-test, regression analysis, Pearson correlation and Kruskal-Wallis test. The results show that 11 of the 12 companies have no significant difference between estimated and actual beta, providing evidence that the CAPM is valid on the LSE.
This document discusses volatility and its implications for controlling. It defines volatility as the unpredictable fluctuations in external and internal economic parameters affecting a company. Two concepts for managing volatility are changeability and resilience management. Changeability focuses on adapting organizational structures to change, while resilience management aims to make companies robust in the face of fluctuations. The document will examine how increased volatility impacts controlling tasks, instruments, processes and organization through eight work packages. It seeks input from controllers on their experiences with and responses to volatility.
This document provides an abstract for a master's thesis that examines the financing needs of circular economy companies. The thesis uses case studies of two Swedish companies, Ragn-Sellsföretagen AB and Inrego AB, as well as data from ING Bank, to understand how circular economy companies finance their operations. The author conducted interviews with the case companies. Key findings indicate that the financing needs of circular companies depend on their business models and value propositions. Internally generated financing from retained earnings is typically used before external debt. The companies studied did not require government financial support to succeed. Their long-term success relies on innovating business models in line with Schumpeter's creative destruction theory.
Length3,000 wordsDetails The world of international buJospehStull43
Length:
3,000 words
Details:
The world of international business is complex and contested. It is also changing rapidly. These changes apply to international business as a whole, the frameworks and structures of businesses themselves, and the way we understand them.
The task of this assignment is to select one of the four international business
theories
that we have looked at in weeks 6 and 7 of this course – global value chains, global production networks, the global factory, or the platform economy – and apply it to a specific
industry
of your choosing. Once you have chosen your theory and industry, the essay should be written in response to the following question:
“Does the [your selected theory] theory accurately reflect the current nature of the [your selected industry] industry?”
Some examples:
Does the global factory theory accurately reflect the current nature of the clothing industry?
Does the global value chain theory accurately reflect the current nature of the consumer electronics industry?
Does the platform economy theory accurately reflect the current nature of the transport industry?
Does the global production network theory accurately reflect the current nature of the food industry?
This full question should be written at the opening of your essay.
Further Guidance
In order to successfully complete this assignment, your final essay should include the following (note that this is NOT a suggested essay structure):
A firm understanding of your chosen
theory
, including:
Its scholarly origins
The problems that it tries to address.
How it differs from theories that came before it
Its contemporary critics and alternatives
A firm understanding of your chosen
industry
, including:
Key firms
Industry structure
Ownership and financing
The influence of government or civil society institutions in firm behaviour
Changes to the above over time, and the reasons for these changes.
A thorough
application
of theory to industry, including:
The strengths of the theory in understanding the current nature of the industry
The limitations of the theory in understanding the current nature of the industry
A consistent
argument
in response to the question: does this theory accurately reflect the current nature of your chosen industry?
See also the rubric below for guidance on what we are looking for.
Structure
You are free to use whatever essay structure you feel best conveys this analysis (some structures may be better suited to some theory/industry combinations). However the following suggested structure is recommended:
Introduction
Overview of your theory
History of your industry
Application of theory to industry
Critiques/limitations of this theory’s application to your industry
Conclusion
Other tips for this assignment
Take the time to read extensively on your theory – do not base your understanding on a single text or our summary below.
The essay should blend historica ...
The Validity of Company Valuation Using Dis.docxchristalgrieg
The Validity of Company Valuation
Using Discounted Cash Flow Methods
Florian Steiger
1
Seminar Paper
Fall 2008
Abstract
This paper closely examines theoretical and practical aspects of the widely used discounted
cash flows (DCF) valuation method. It assesses its potentials as well as several weaknesses. A
special emphasize is being put on the valuation of companies using the DCF method. The
paper finds that the discounted cash flow method is a powerful tool to analyze even complex
situations. However, the DCF method is subject to massive assumption bias and even slight
changes in the underlying assumptions of an analysis can drastically alter the valuation
results. A practical example of these implications is given using a scenario analysis.
____________
1
Author: Florian Steiger, European Business School, e-mail: [email protected]
Table of Contents
List of abbreviations ........................................................................................................... i
List of figures and tables ................................................................................................... ii
1 Introduction .................................................................................................................. 1
1.1 Problem Definition and Objective ...................................................................... 1
1.2 Course of the Investigation ................................................................................. 2
2 Company valuation ....................................................................................................... 2
2.1 General Goal and Use of Company Valuation ................................................... 2
2.2 Other Valuation Methods ................................................................................... 3
3 The Discounted Cash Flow Valuation Method ............................................................ 4
3.1 Approach of the Discounted Cash Flow Valuation ............................................ 4
3.2 Calculation of the Free Cash Flow ..................................................................... 5
3.2.1 Cash Flow to Firm and Cash Flow to Equity.................................................. 5
3.2.2 Building Future Scenarios .............................................................................. 6
3.3 The Weighted Average Cost of Capital ............................................................. 6
3.3.1 Cost of Equity ................................................................................................. 7
3.3.2 Cost of Debt .................................................................................................... 8
3.3.3 Summary ......................................................................................................... 9
3.4 Calculation of the Terminal Value ................................................... ...
Renewable & Sustainable Energy ReviewsKarel Mulder
This document discusses two paradigms for developing solutions to environmental crises: analysis of metabolic systems and analysis and management of change. The analysis of metabolic systems paradigm uses methods like life cycle analysis and mass flow analysis to quantify problems and identify causes. The analysis and management of change paradigm focuses on managing long-term technological and institutional change through mechanisms like transition management. The author argues that both paradigms are needed to work towards sustainability but they rarely interact. The author focuses on how engineering education needs to bridge these paradigms by training engineers with strategic competences to both analyze problems and enable large-scale change.
Principles of Economics 5th Edition Gans Solutions ManualGordonlANA
This chapter introduces key economic concepts and models used to think like an economist. It discusses how economists use scientific methods and assumptions to build simplified models that provide insight into real-world phenomena. The circular flow diagram and production possibilities frontier are presented as introductory models. Microeconomics focuses on individual decision-making of households and firms, while macroeconomics analyzes economy-wide forces. Positive statements describe the world as it is, while normative statements make claims about how the world should be. Economists may offer conflicting policy advice due to differences in scientific judgments or values.
The document defines management as the process of designing and maintaining an environment where individuals work together in groups to efficiently accomplish goals. It discusses management roles including planning, organizing, leading, and controlling. Managerial roles include figurehead, leader, liaison, monitor, disseminator, spokesperson, entrepreneur, troubleshooter, resource allocator, and negotiator. Managerial skills include technical, human, and conceptual skills. The evolution of management is also summarized, from early uses of machinery to modern concepts like total quality management.
The document discusses various aspects of management including definitions, roles, skills, and the planning process. It provides definitions of management from various sources and outlines managerial roles according to Mintzberg including interpersonal, informational, and decisional roles. It also discusses the evolution of management from early industrialization to modern concepts of quality management. Regarding planning, it describes the importance of planning, types of plans such as objectives, strategies and budgets, and the steps involved in planning like setting goals and identifying alternatives.
This document discusses 5 major challenges facing financial services modelling functions in Europe: 1) The modelling scope is expanding with more models required, 2) Fully harmonized methodologies across institutions and business units are imperative for transparency and cost reduction, 3) Modelling structures need to become more efficient to reduce costs, 4) Modelling governance needs to be broadened, and 5) Emerging data and techniques allow for model innovations. It provides implications for banks, outlining a 5-point plan for banks to develop a comprehensive model review, harmonize methodologies, redesign validation processes, rethink governance, and build new expertise in data science to address these challenges. The plan aims to reduce total model count by 15% and associated
Modelling: What’s next for Financial Services in Europe?GRATeam
This paper outlines a practical roadmap to realising cost savings, delivering a material reduction in the volume and complexity of models by outlining five key principles of model optimisation: develop a comprehensive review of models, harmonise methodologies, re-design model validation/monitoring process, re-think its modelling team’s organisation & governance and build new expertise and recruit talent.
This document discusses the need for theory building in entrepreneurship research. It begins by noting that while empirical knowledge of entrepreneurship has grown, it still lacks a substantial theoretical foundation. The authors argue that researchers should shift their focus from defining entrepreneurs to modeling the entrepreneurial process. They propose working definitions of entrepreneurial events and the entrepreneurial process. An ideal model of entrepreneurship, they say, would be deterministic and account for the unique characteristics of the entrepreneurial process, like its initiation through human volition and sensitivity to initial conditions. However, incorporating human volition poses challenges for mathematical modeling approaches.
This document provides an introduction to production in the short and long run for firms. It discusses key concepts such as production functions, total product, average product, and marginal product. It explains that in the short run, at least one factor of production is fixed, while variable inputs can be changed. The law of diminishing returns states that as a variable input is increased, initially total output rises but then falls, as marginal product declines beyond a certain point when workers have less capital to work with per person. The length of the short run and long run can vary significantly between industries.
Hemant Puthli Associates is a virtual network of independent professionals that provides consulting services to participants in the Business Technology market. Our services are aimed at assisting clients in their Sustainable Business Transformation journey and focus mainly on the Strategy and Governance aspects.
This document summarizes a paper that explores how actuaries can apply techniques from financial economics in their work. It presents several case studies using concepts like risk discount rates, locking-in adjustments, and risk neutral methodologies. The case studies value a personal equity plan and examine asset-liability studies and capital adequacy from the perspective of financial economics. It includes computer code with examples to demonstrate stochastic modeling and valuation. The paper aims to bring these new techniques into the actuarial profession for discussion and potential wider application.
This document discusses the concept of "minimum viable transformations", which are lightly constructed versions of potential new business models that companies test to learn about risks and uncertainties. It provides examples of companies like Intuit that have successfully transformed their business models by applying principles from startup culture, such as building minimum viable products. The key points made are: 1) Companies are increasingly pursuing business model innovation to keep up with changing market conditions. 2) Transforming business models at scale is risky, so testing prototypes first can provide valuable learning. 3) Intuit transformed to a software-as-a-service model by "acting small" and applying minimum viable product thinking. 4) Minimum viable transformations allow companies to learn fast by failing small in a controlled
Guide to practical project appraisal en (1)tmelnik
This document provides an introduction and background to the Guide to Practical Project Appraisal. It discusses the original UN Guidelines for Project Evaluation publication that this guide builds upon. The original guidelines emphasized using "shadow prices" that reflect the true value of resources to evaluate projects, as market prices are often distorted. It also stressed evaluating projects' impacts on both efficiency and equity. This guide aims to make the UNIDO methodology more accessible to practitioners by simplifying it and including practical guidance. It covers evaluating projects through five stages: financial analysis, economic analysis using shadow prices, savings impact, income distribution impact, and social considerations.
This document provides an introduction and background to the Guide to Practical Project Appraisal. It discusses the original UN Guidelines for Project Evaluation publication that this guide builds upon. The original guidelines emphasized using "shadow prices" that reflect the true value of resources to evaluate projects, as market prices are often distorted. It also stressed evaluating projects' impacts on both efficiency and equity. This guide aims to make the UNIDO methodology more accessible to practitioners by simplifying it and including examples. It will take readers through 5 stages of project evaluation: financial analysis, economic analysis using shadow prices, impacts on savings and investment, income distribution, and social goods. The overall goal is to help analysts and decision makers evaluate projects' total social impacts.
Global Digital Economy - The Inside TrackCavendish
This document discusses the concept of the "digital revolution" and thriving global digital economy. It argues that claims of a technological break from the past are overstated, and that continuities are being obscured. While technologies are advancing, modernity is a long historical process of intensification, not a state of post-industrialization. Globalization and information flows have deep historical roots. The rhetoric of revolution hides the fact that change is a constant process within capitalism, not a clean break, bringing both insecurities and opportunities. Thinking must consider how financial markets, global coordination and intensifying production processes apply.
This document discusses the concept of increasing returns and economic progress. It begins by noting that while economists have developed complex models to analyze industries with increasing returns, these models can obscure more general aspects of the phenomena. It argues that the growth of indirect or roundabout production methods, enabled by greater specialization and division of labor, is a key source of increasing returns. However, the extent of these returns depends on the size of the market, as larger markets allow for greater specialization and use of capital-intensive production methods. While rationalization may improve efficiency, the fundamental driver of economic progress is the expansion of markets that comes from overall economic growth and development.
Easily Verify Compliance and Security with Binance KYCAny kyc Account
Use our simple KYC verification guide to make sure your Binance account is safe and compliant. Discover the fundamentals, appreciate the significance of KYC, and trade on one of the biggest cryptocurrency exchanges with confidence.
This document is Ezekiel Peeta-Imoudu's final year project which tests the validity of the Capital Asset Pricing Model (CAPM) using volatility on the London Stock Exchange from 2001-2010. The project provides a literature review on the CAPM theory and debates around its validity. It then empirically estimates beta for 12 selected companies using statistical tests like paired sample t-test, regression analysis, Pearson correlation and Kruskal-Wallis test. The results show that 11 of the 12 companies have no significant difference between estimated and actual beta, providing evidence that the CAPM is valid on the LSE.
This document discusses volatility and its implications for controlling. It defines volatility as the unpredictable fluctuations in external and internal economic parameters affecting a company. Two concepts for managing volatility are changeability and resilience management. Changeability focuses on adapting organizational structures to change, while resilience management aims to make companies robust in the face of fluctuations. The document will examine how increased volatility impacts controlling tasks, instruments, processes and organization through eight work packages. It seeks input from controllers on their experiences with and responses to volatility.
This document provides an abstract for a master's thesis that examines the financing needs of circular economy companies. The thesis uses case studies of two Swedish companies, Ragn-Sellsföretagen AB and Inrego AB, as well as data from ING Bank, to understand how circular economy companies finance their operations. The author conducted interviews with the case companies. Key findings indicate that the financing needs of circular companies depend on their business models and value propositions. Internally generated financing from retained earnings is typically used before external debt. The companies studied did not require government financial support to succeed. Their long-term success relies on innovating business models in line with Schumpeter's creative destruction theory.
Length3,000 wordsDetails The world of international buJospehStull43
Length:
3,000 words
Details:
The world of international business is complex and contested. It is also changing rapidly. These changes apply to international business as a whole, the frameworks and structures of businesses themselves, and the way we understand them.
The task of this assignment is to select one of the four international business
theories
that we have looked at in weeks 6 and 7 of this course – global value chains, global production networks, the global factory, or the platform economy – and apply it to a specific
industry
of your choosing. Once you have chosen your theory and industry, the essay should be written in response to the following question:
“Does the [your selected theory] theory accurately reflect the current nature of the [your selected industry] industry?”
Some examples:
Does the global factory theory accurately reflect the current nature of the clothing industry?
Does the global value chain theory accurately reflect the current nature of the consumer electronics industry?
Does the platform economy theory accurately reflect the current nature of the transport industry?
Does the global production network theory accurately reflect the current nature of the food industry?
This full question should be written at the opening of your essay.
Further Guidance
In order to successfully complete this assignment, your final essay should include the following (note that this is NOT a suggested essay structure):
A firm understanding of your chosen
theory
, including:
Its scholarly origins
The problems that it tries to address.
How it differs from theories that came before it
Its contemporary critics and alternatives
A firm understanding of your chosen
industry
, including:
Key firms
Industry structure
Ownership and financing
The influence of government or civil society institutions in firm behaviour
Changes to the above over time, and the reasons for these changes.
A thorough
application
of theory to industry, including:
The strengths of the theory in understanding the current nature of the industry
The limitations of the theory in understanding the current nature of the industry
A consistent
argument
in response to the question: does this theory accurately reflect the current nature of your chosen industry?
See also the rubric below for guidance on what we are looking for.
Structure
You are free to use whatever essay structure you feel best conveys this analysis (some structures may be better suited to some theory/industry combinations). However the following suggested structure is recommended:
Introduction
Overview of your theory
History of your industry
Application of theory to industry
Critiques/limitations of this theory’s application to your industry
Conclusion
Other tips for this assignment
Take the time to read extensively on your theory – do not base your understanding on a single text or our summary below.
The essay should blend historica ...
The Validity of Company Valuation Using Dis.docxchristalgrieg
The Validity of Company Valuation
Using Discounted Cash Flow Methods
Florian Steiger
1
Seminar Paper
Fall 2008
Abstract
This paper closely examines theoretical and practical aspects of the widely used discounted
cash flows (DCF) valuation method. It assesses its potentials as well as several weaknesses. A
special emphasize is being put on the valuation of companies using the DCF method. The
paper finds that the discounted cash flow method is a powerful tool to analyze even complex
situations. However, the DCF method is subject to massive assumption bias and even slight
changes in the underlying assumptions of an analysis can drastically alter the valuation
results. A practical example of these implications is given using a scenario analysis.
____________
1
Author: Florian Steiger, European Business School, e-mail: [email protected]
Table of Contents
List of abbreviations ........................................................................................................... i
List of figures and tables ................................................................................................... ii
1 Introduction .................................................................................................................. 1
1.1 Problem Definition and Objective ...................................................................... 1
1.2 Course of the Investigation ................................................................................. 2
2 Company valuation ....................................................................................................... 2
2.1 General Goal and Use of Company Valuation ................................................... 2
2.2 Other Valuation Methods ................................................................................... 3
3 The Discounted Cash Flow Valuation Method ............................................................ 4
3.1 Approach of the Discounted Cash Flow Valuation ............................................ 4
3.2 Calculation of the Free Cash Flow ..................................................................... 5
3.2.1 Cash Flow to Firm and Cash Flow to Equity.................................................. 5
3.2.2 Building Future Scenarios .............................................................................. 6
3.3 The Weighted Average Cost of Capital ............................................................. 6
3.3.1 Cost of Equity ................................................................................................. 7
3.3.2 Cost of Debt .................................................................................................... 8
3.3.3 Summary ......................................................................................................... 9
3.4 Calculation of the Terminal Value ................................................... ...
Renewable & Sustainable Energy ReviewsKarel Mulder
This document discusses two paradigms for developing solutions to environmental crises: analysis of metabolic systems and analysis and management of change. The analysis of metabolic systems paradigm uses methods like life cycle analysis and mass flow analysis to quantify problems and identify causes. The analysis and management of change paradigm focuses on managing long-term technological and institutional change through mechanisms like transition management. The author argues that both paradigms are needed to work towards sustainability but they rarely interact. The author focuses on how engineering education needs to bridge these paradigms by training engineers with strategic competences to both analyze problems and enable large-scale change.
Principles of Economics 5th Edition Gans Solutions ManualGordonlANA
This chapter introduces key economic concepts and models used to think like an economist. It discusses how economists use scientific methods and assumptions to build simplified models that provide insight into real-world phenomena. The circular flow diagram and production possibilities frontier are presented as introductory models. Microeconomics focuses on individual decision-making of households and firms, while macroeconomics analyzes economy-wide forces. Positive statements describe the world as it is, while normative statements make claims about how the world should be. Economists may offer conflicting policy advice due to differences in scientific judgments or values.
The document defines management as the process of designing and maintaining an environment where individuals work together in groups to efficiently accomplish goals. It discusses management roles including planning, organizing, leading, and controlling. Managerial roles include figurehead, leader, liaison, monitor, disseminator, spokesperson, entrepreneur, troubleshooter, resource allocator, and negotiator. Managerial skills include technical, human, and conceptual skills. The evolution of management is also summarized, from early uses of machinery to modern concepts like total quality management.
The document discusses various aspects of management including definitions, roles, skills, and the planning process. It provides definitions of management from various sources and outlines managerial roles according to Mintzberg including interpersonal, informational, and decisional roles. It also discusses the evolution of management from early industrialization to modern concepts of quality management. Regarding planning, it describes the importance of planning, types of plans such as objectives, strategies and budgets, and the steps involved in planning like setting goals and identifying alternatives.
This document discusses 5 major challenges facing financial services modelling functions in Europe: 1) The modelling scope is expanding with more models required, 2) Fully harmonized methodologies across institutions and business units are imperative for transparency and cost reduction, 3) Modelling structures need to become more efficient to reduce costs, 4) Modelling governance needs to be broadened, and 5) Emerging data and techniques allow for model innovations. It provides implications for banks, outlining a 5-point plan for banks to develop a comprehensive model review, harmonize methodologies, redesign validation processes, rethink governance, and build new expertise in data science to address these challenges. The plan aims to reduce total model count by 15% and associated
Modelling: What’s next for Financial Services in Europe?GRATeam
This paper outlines a practical roadmap to realising cost savings, delivering a material reduction in the volume and complexity of models by outlining five key principles of model optimisation: develop a comprehensive review of models, harmonise methodologies, re-design model validation/monitoring process, re-think its modelling team’s organisation & governance and build new expertise and recruit talent.
This document discusses the need for theory building in entrepreneurship research. It begins by noting that while empirical knowledge of entrepreneurship has grown, it still lacks a substantial theoretical foundation. The authors argue that researchers should shift their focus from defining entrepreneurs to modeling the entrepreneurial process. They propose working definitions of entrepreneurial events and the entrepreneurial process. An ideal model of entrepreneurship, they say, would be deterministic and account for the unique characteristics of the entrepreneurial process, like its initiation through human volition and sensitivity to initial conditions. However, incorporating human volition poses challenges for mathematical modeling approaches.
This document provides an introduction to production in the short and long run for firms. It discusses key concepts such as production functions, total product, average product, and marginal product. It explains that in the short run, at least one factor of production is fixed, while variable inputs can be changed. The law of diminishing returns states that as a variable input is increased, initially total output rises but then falls, as marginal product declines beyond a certain point when workers have less capital to work with per person. The length of the short run and long run can vary significantly between industries.
Hemant Puthli Associates is a virtual network of independent professionals that provides consulting services to participants in the Business Technology market. Our services are aimed at assisting clients in their Sustainable Business Transformation journey and focus mainly on the Strategy and Governance aspects.
This document summarizes a paper that explores how actuaries can apply techniques from financial economics in their work. It presents several case studies using concepts like risk discount rates, locking-in adjustments, and risk neutral methodologies. The case studies value a personal equity plan and examine asset-liability studies and capital adequacy from the perspective of financial economics. It includes computer code with examples to demonstrate stochastic modeling and valuation. The paper aims to bring these new techniques into the actuarial profession for discussion and potential wider application.
This document discusses the concept of "minimum viable transformations", which are lightly constructed versions of potential new business models that companies test to learn about risks and uncertainties. It provides examples of companies like Intuit that have successfully transformed their business models by applying principles from startup culture, such as building minimum viable products. The key points made are: 1) Companies are increasingly pursuing business model innovation to keep up with changing market conditions. 2) Transforming business models at scale is risky, so testing prototypes first can provide valuable learning. 3) Intuit transformed to a software-as-a-service model by "acting small" and applying minimum viable product thinking. 4) Minimum viable transformations allow companies to learn fast by failing small in a controlled
Guide to practical project appraisal en (1)tmelnik
This document provides an introduction and background to the Guide to Practical Project Appraisal. It discusses the original UN Guidelines for Project Evaluation publication that this guide builds upon. The original guidelines emphasized using "shadow prices" that reflect the true value of resources to evaluate projects, as market prices are often distorted. It also stressed evaluating projects' impacts on both efficiency and equity. This guide aims to make the UNIDO methodology more accessible to practitioners by simplifying it and including practical guidance. It covers evaluating projects through five stages: financial analysis, economic analysis using shadow prices, savings impact, income distribution impact, and social considerations.
This document provides an introduction and background to the Guide to Practical Project Appraisal. It discusses the original UN Guidelines for Project Evaluation publication that this guide builds upon. The original guidelines emphasized using "shadow prices" that reflect the true value of resources to evaluate projects, as market prices are often distorted. It also stressed evaluating projects' impacts on both efficiency and equity. This guide aims to make the UNIDO methodology more accessible to practitioners by simplifying it and including examples. It will take readers through 5 stages of project evaluation: financial analysis, economic analysis using shadow prices, impacts on savings and investment, income distribution, and social goods. The overall goal is to help analysts and decision makers evaluate projects' total social impacts.
Global Digital Economy - The Inside TrackCavendish
This document discusses the concept of the "digital revolution" and thriving global digital economy. It argues that claims of a technological break from the past are overstated, and that continuities are being obscured. While technologies are advancing, modernity is a long historical process of intensification, not a state of post-industrialization. Globalization and information flows have deep historical roots. The rhetoric of revolution hides the fact that change is a constant process within capitalism, not a clean break, bringing both insecurities and opportunities. Thinking must consider how financial markets, global coordination and intensifying production processes apply.
This document discusses the concept of increasing returns and economic progress. It begins by noting that while economists have developed complex models to analyze industries with increasing returns, these models can obscure more general aspects of the phenomena. It argues that the growth of indirect or roundabout production methods, enabled by greater specialization and division of labor, is a key source of increasing returns. However, the extent of these returns depends on the size of the market, as larger markets allow for greater specialization and use of capital-intensive production methods. While rationalization may improve efficiency, the fundamental driver of economic progress is the expansion of markets that comes from overall economic growth and development.
Similar to Advanced tools for Visualizing, Measuring and Managing Intangibles (20)
Easily Verify Compliance and Security with Binance KYCAny kyc Account
Use our simple KYC verification guide to make sure your Binance account is safe and compliant. Discover the fundamentals, appreciate the significance of KYC, and trade on one of the biggest cryptocurrency exchanges with confidence.
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B2B payments are rapidly changing. Find out the 5 key questions you need to be asking yourself to be sure you are mastering B2B payments today. Learn more at www.BlueSnap.com.
Discover timeless style with the 2022 Vintage Roman Numerals Men's Ring. Crafted from premium stainless steel, this 6mm wide ring embodies elegance and durability. Perfect as a gift, it seamlessly blends classic Roman numeral detailing with modern sophistication, making it an ideal accessory for any occasion.
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How to Implement a Strategy: Transform Your Strategy with BSC Designer's Comp...Aleksey Savkin
The Strategy Implementation System offers a structured approach to translating stakeholder needs into actionable strategies using high-level and low-level scorecards. It involves stakeholder analysis, strategy decomposition, adoption of strategic frameworks like Balanced Scorecard or OKR, and alignment of goals, initiatives, and KPIs.
Key Components:
- Stakeholder Analysis
- Strategy Decomposition
- Adoption of Business Frameworks
- Goal Setting
- Initiatives and Action Plans
- KPIs and Performance Metrics
- Learning and Adaptation
- Alignment and Cascading of Scorecards
Benefits:
- Systematic strategy formulation and execution.
- Framework flexibility and automation.
- Enhanced alignment and strategic focus across the organization.
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Advanced tools for Visualizing, Measuring and Managing Intangibles
1. Advanced tools for Visualizing,
Measuring and Managing Intangibles
Author:
Peter Bretscher
Ingenieurbüro für Wirtschaftsentwicklung
9034 Eggersriet, Switzerland
peter.bretscher@bengin.com
Introduction and problem description
In the last years it showed up that the instruments of the economists do not have the desired
precision. The author would like to point out possibilities with this paper, how with new aspects and
instruments white fields of the economic map can be mapped and new business options become
possible.
Structure of contents
As the economy changes and develops ........................................................ 2
Models, tools, products for explaining the economy ................................... 3
The development of products.................................................................................................. 3
Economic theory as a product................................................................................................. 3
Two outpaced paradigms ................................................................................ 5
The Vector......................................................................................................... 6
Outlook ............................................................................................................. 9
Persons, organizations and literature .......................................................... 10
Persons: ................................................................................................................................ 10
Organizations: ....................................................................................................................... 10
Resuming literature: .............................................................................................................. 10
Update and Disclaimer .................................................................................. 10
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2. As the economy changes and develops
Since beginning of the manufacturers revolution in the 18nt Century the economy expanded from Low
Tech conditions to High Tech conditions. That means in other words that not only the resources for the
creation of wealth but also the results are of less and less tangible and more and more of intangible
consistency. The more intelligent goods are, the more “gray matter” is necessary for its development
and production.
Figure 1
But not only the kind of the goods, also the form of the offerings changed during the development of
the Low to the High Tech economics. While in Low Tech areas humans still predominantly concern
themselves with the supply of material products, this is much replaced now by service orientation and
further on enhanced by license businesses.
Figure 2
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3. Models, tools, products for explaining the economy
The development of products
Outgoing from a need and a solution, products normally expand themselves in curves, which shows a
„S-Shape “. With a higher maturity of the advancements of solutions further advancements can only be
achieved at increasing expenses. One says that solutions come into a “saturation“ and that an
advancement on the same old bases is no longer worthwhile itself.
If thus certain solutions come into the saturation - or if they cannot be used because of changed
requirements any longer - the time has come for a new solution with a new or enhanced base. The
product life cycle of the old solution comes to end and a new generation will take place.
Product life cycles can last a very long time. The Volkswagen beetle was produced approximately 50
years. Then it was substituted by the Volkswagen Golf, which is now already several times revised and
on its own S-Curve.
Such S-Curve developments can be found within all developments in the technological, organizational
and also within the social environment.
Peter F. Drucker gave some good examples in his book “Innovation”. He describes impressively the
cause for “disruptive innovations” – the change from red to green S-Curve – that lies often in a gap of
“what is” and “what should be”. A gap of what we experience in real live and what theory offers as an
explanation (a MindSet) of that.
Economic theory as a product
Figure 3
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4. Economics take a special position under all the teachings, because their statements have direct and
indirect an effect on thinking, reasoning and acting of high-level personnel in politics and economics.
The effect is direct because high-level personnel must acquire itself the knowledge of the “business
theory” as the basic literacy to express the insights and views under peers and beyond.
The effect is indirect because in the course of the time six specialized areas have been developed, in
which individual aspects of the economy are worked out and adjusted by specialists.
The six specialized areas:
1. The political economy, which has primarily “the well-being issue“ of nations as priorities; 2. The
business economics, in which the considerations is intensively aligned to the enterprise; 3. The
teachings to the management, as management has to use the economic theory in practice; 4. The
accounting, in which together with the financial bookkeeping also an accounting framework was
developed, which accounts the costs according to various criteria; 5. The juridical system, in which
among other things it is defined, when an enterprise goes bankrupt and 6. The chartered accountants,
who audit the enterprise and verify that the records are made according to the rules.
Albeit in these specialized areas continuously adjustments take place. But there is in nearly all cases a
constant development on the same bases. The development within these priority areas also has a S-
Shape at the last stage and lacks the structure for integrating intangibles and an enhanced metric for
considering the subjectivity of the valuation process.
Even there is some minor progress in the specified areas of the professionals. Real advantages have
their origin mostly in the area No 3 (teachings to the management), where most of the conflict between
teachings and their application in practice accrue.
A special problem during the disruptive innovation process of economic MindSet is that a change has
to be “scientifically correct”. Even proved in several cases, that scientifically agreed meanings are
leading to a dead end (see N. Taleb, Black Swan). Specialists in all six areas have to be convinced to
enhance their paradigm if one cannot wait until they die. This would be the natural solution that several
masterminds in the science field see as the only solution for a progress.
Because the use of outpaced economic MindSets has negative impact to our real world living we
should in all six areas proactively develop an enhanced economic reasoning system that fits the needs
for a sustainable growth of economy.
Figure 4
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5. Two outpaced paradigms
From the many postulates and assumptions in the classical economic theory „the developers of the
models at that time“ would probably re-specify two paradigms with highest priority.
1. The paradigm “ground, work, capital“ would most probably be substituted by a framework that
is based on tangible and intangible objects as resources.
2. A further paradigm, i.e. the value paradigm, was likewise defined that value has to be
measured in “objective” and tangible monetary units. This paradigm should be replaced by an
improved metric system that enables to integrate the aspect that a valuation process has a
subjective base.
Both paradigm expansions are a condition for a revised model, that corresponds better with the
today's and future requirements for structuring and quantifying the real economy.
While the expansion of the first paradigm is easy to understand and brings no mathematical
difficulties, the expansion of the well known monetary yardstick by a subjective value measure is
already somewhat more difficult for experienced economists to accept. Many of them will probably go
through all phases of a paradigm shift, which Thomas Kuhn described 1962 in its book “The Structure
of Scientific Revolution“.
On the part of mathematics the instruments are available to calculate in two and more dimensions.
This both in the form of the complex numbers and by the use of the wider used vectors. Vectors and
complex numbers made it possible in the history of the natural sciences already several times to
improve insufficient illustration instruments and declaration models. For example to the scientifically
accepted declaration of the alternating current, color, the force, the power and so on.
The effects on the existing economic literature are “marginal in principle”.
In the book „Theory of Value“ (1959, Gerard Debreu, Nobel laureate, Yale University Press) for
example specified on page 62 „The expenditure… must clearly be at most equal to the wealth of the
customer, a real number.“. This restriction on a linear measuring system should be written new in the
language of the mathematicians expressed: „The expenditure… must clearly be at most equal to the
wealth of the customer, a complex number.“.
The effects on the organization of economics and company might be however large and positive.
Figure 5
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6. The Vector
The vector is a mathematical vehicle, with which it is possible to make arithmetic exercises not only on
a linear axe but also in two and multidimensional space. There are two kind of vectors. The graphical
vector that is more than 2000 years old – it was used to compound velocities – and the numerical
vector that is used about 150 years mainly from physicists and engineers.
Academics of natural science often had to revise their basic assumption to re-design the classic
explanation models in order to better match and explain the phenomenon that they perceived in real
reality. Often they have used formulas that include vector elements in numerical or graphical forms.
Examples can be: Forces with strength and direction, velocity with strength and direction, acceleration
with strength and direction, colours with “red”, “green” and “blue” as components. Even a volume – for
clear description – consists of three dimensions (length x width x high). The description of a volume in
one number alone is only useful for specific reasons.
Value b
Vector = a + b
Value a
Figure 6
With vectors it is possible to visualize two (ore more) any desired indicators representing
characteristics of a physical or an economic object. All that is necessary is a number and a unit. Any
unit for indicator is allowed, coming from any natural or social science. The eye that looks at a vector
instantly catches and realizes that the two values “Value a” and “Value b” (in Figure 6) each have an
impact to the total value of that object.
In practice it has been showed that one should differentiate between two types of vectors.
“Vector 1” is used for any combination of any axes with any subjective or objective unit or metric. Its
purpose is to show (in a 2D vector) two any desired property or indicator of an object, be it monetary
or nonmonetary, be it subjective or “objective”. Examples: Turnover, profit, production costs,
development costs, disease days, storage space, turn-around time. See Figure 7 and Figure 8.
“Vektor 2” then is – in analogy to the complex number – used for the definition and combined
calculation of “explicit” and “implicit” value indicators. See Figure 9
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7. Figure 7 shows five Business units with the numbers for “turnover” (horizontal axis) and “operating
profit” (vertical axes).The information that otherwise only experienced professionals could interpret
from the numbers on the left side can now be viewed, shared and communicated in a far better way
then with numbers alone.
Figure 7
The picture shows two characteristic numbers operating profit and turnover of Daimler Benz with the
five business fields in the year 1996. Contrary to the usual numbers in the left field is immediately
evident in the vector representation, which range contributed as much above average (or negatively)
to business success. At the same time one loses not in the numbers but keeps themselves the
overview of the substantial.
Figure 8 shows then a sample that has subjective indicators at the vertical axis and R&D expenditures
for different properties of a car on the horizontal axis. Needless to say, that the subjective indicators
could derive fro a view of a customer, a salesman, a designer, the management and so on.
Figure 8
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8. A step beyond the insights and information that can be gained by using “Vector 1” is using the vector
principle as a possibility to establish an objective metric system for subjective values.
This subjective value, called intrinsic or implicit value in Figure 9, is based on two monetary indicators
as (for example if people buy a share of an enterprise) book value and price of a share of an
enterprise. The intrinsic value that the share has for the buyer is the square root of the share price
squared minus the book value squared. The mathematical principle that links the monetary (price) axis
with the axis for the subjective (intrinsic) value is given by the rule of Pythagoras.
This principle allows to introduce a logic for an objective metric for determining a subjective value in
any trading process.
Figure 9
As already specified above, the possibilities to show examples are so tremendous, in particular if one
takes the development of the Behavioral Economics into account, that it does not make sense to blow
up this paper with additional examples.
For that reason a specific website will be set up for additional information.
Link: http://www.bengin.net/dresden/
Enhancing the two paradigms and thinking in vector terms is not only an academic exercise. It has
some serious impact to the design of enterprises and business in so far that it enables to map and
quantify the intangibles in addition to the well known classis valuation principle in monetary units. That
kind of value map opens the way for a more sustainable reasoning in the decision process in industry
and politics. At least they could if they would.
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9. Outlook
With the expansion of classical balance by an immaterial balance and the monetary value metric by
subjective indicators the options for a lasting development of politics and economics rise substantially.
What until now was missed is now on the map and will have a positive impact.
Figure 10
Figure 11
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