IEM Enterprise: Profitability Extremum

IEM Enterprise: Profitability Extremum

IEM Enterprise as the theoretical limit of an enterprise's operating profitability.

The theory of an enterprise in a competitive market — the IEM enterprise — is to replace the myth of ERP management from the 20th century.

IEM Enterprise is a project of the IEM Paradigm focused on the task of managing complex social structures.

The IEM Enterprise paradigm describes the universal cybernetic model of a for-profit organization operating in an ideal competitive market and reaching the theoretical limit of operating profitability in the given market conditions.

The IEM paradigm absorbs, synthesizes and structures separate achievements of individual business organizers from the past and mathematically systemizes them into a cohesive, consistent model.

Japanese management (Toyota Production System), Just In Time, Operational Improvement, Lean Manufacturing, Lean Service, "6 Sigma", Process Approach, Value Networking, Managing through the Balanced Scorecard concept, the concept of "zero defects", Goldratt's theory of constraints, etc. — all of them are similar to physics before Newton; they were a combination of individual guesses based on plausible inferences and generalizations from practical observations.

The existing scattered fragments of a complete mathematical model for an enterprise in a competitive market all have a systematic reflection in the cybernetic IEM.

The history of the last century and a half has irrefutably proven the advantages of the free market on the macro level.

IEM Enterprise shows how the advantages of social computer multiply at the microlevel: on the level of an individual enterprise.

The classical management paradigm accepted the inevitable loss of efficiency as a company grew.

The IEM Enterprise paradigm offers technology for structuring an organization so efficiency only increases with size, just like the efficiency of the free market.

Over the course of a century and a half, millions of companies the world over have made less money than they could have — slavishly following, it's obvious if you think for a minute, the irrational mythology of classical MBA management, condensed in the ERP paradigm.

In addition to this, performing an incredible amount of absolutely unnecessary, tedious and expensive movements.

Maybe it's time already?

Time to eliminate purchases of dried frog legs and rabbit's feet from the list of expenses.

The limit of your profits is achieved by following the business Tao of your enterprise: maximal integration of it's internal value chains with global streams of wealth creation.

Any administrative shenanigans outside of this this only reduce profits.

2 х 2 = 4.

"It’s math, prof."

July 10, 2018 by John Galt