IEM Enterprise Profitability Extremum
Free market is the most complex management system among actually liable ones.
In an IEM Enterprise employees receive management impulses only from the market, and work with market demand, not with the plan (“extraction" in TPS).
Complete rejection of any kind of planning as a management tool, instead of scenario simulation.
2. Internal sorting — broadcasting market signals along value chains to every employee.
The signals are transmitted during the standardized business processes (possibly automated by IEM System), rhythmically synchronized on the scale of the enterprise at the very minimum.
At maximum — on the scale of global value chains.
Fundemantal planning inferiority leads to regular emergencies.
IEM cybernetic limit physical concurrency — manifestation of superconductivity: business, the expenses of which are near zero.
Abstraction of the knot of global value chains naturally leads to the requirement of regularity of pace and evenness of business process execution ("leveling" in TPS) inside and outside of the company, and banning global flow imbalance in order to achieve "local optimums" (Goldratt): strategic expenses always exceed tactical gain.
Hence IEM has an implicit priority of long-term goals over short-term ones, and the numerical reference of vague "long term" is at least several finished business cycles. (most of the departments still match the calendar year).
Universal IEM model is simultaneously the most accurate approximation, comparing to the other possible particular solutions.
For the organization, IEM enjoins serial coordinated approximation (not a one time reform, See. "Integrity) to an ideal IEM model: all section of global value chains. Order and coordination is much more important, than speed ("Kaizen" TPS).
On the scale of global economics — evolution of all economic agents to the IEM model and the following smooth consistent integration of global value chains into an isolated multicellular economic meta-organism with global reach ("economic singularity").
An ideal IEM model is inaccessible in practice; however, an unlimited approximation to it is possible.
IEM gives universal selection criteria of alternative solutions: in long-term the option closer to the IEM will be more profitable.
Business solution contrary to the IEM imperatives will only cause losses in the long-term.
"Technology" of any kind, which promises long-term profit in the defiance of IEM is a fraud, on the same basis as the statement that two by two is four.
- outside: marketing strategy
- inside: creating impetus for its actualization by adjusting parameters of the IEM wages matrix.
Rejection of bureaucratic apparatus and administration
company is controlled by the market, and CЕО achieves leadership and governs influence on the IEM matrix by synchronizing people's personal motivation with business strategic goals as a whole.
Only monetary incentives for the personnel, based on objective calculating KPI, solely on the basis of external market signals.
End-to-end value chain, coordinated from inside along with a monetary inventive system are a projection of the company\shareholder goals onto the accounting monetary criteria of personal efficiency.
Adequate employees, motivated by adequately adjusted schemes, act in accordance with the shareholders' goals. Inadequate employees do not receive satisfactory wage (no results) and eventually quit.
Self-organizing ecological environment, where workforce productivity steadily increases without additional interference.
Uniting, coordinating and synchronizing marketing strategy and creating conditions for its realization on the operational level, the CEO of an IEM Enterprise is its center, backbone and accumulation point: a leader in the truest sense. Furthermore, the corporate leadership phenomenon is only fully possible as a part of IEM.
Delegation (to CMO, COO), splitting and/or delegating the IEM-leader’s core functions as well as collective leadership is strongly prohibited within the IEM Paradigm.
When you draw a chart of your enterprise using the "to be" model of your IEM System you become a real creator, but if you are trying to implement an ERP system you are doomed to fail.
The process of implementing an ERP system is over when you realize that you will never get a desired result. People responsible for this task keep "implementing" it until they retire or are dismissed.
Strategic marketing is what makes a real difference in the first place.
But among secondary success factors, there is nothing but it that requires so little effort and money and makes so profound impact.
The information available from open sources indicates that Jobs was no engineer, not much of a manager and quite a mediocrity as a leader. A capable manipulator at best. But, beyond doubt, he was a marketer of genius, one of the greatest ones in the history of business.
...Format successful in the daytime business catering market must simultaneously feature:
- cheapness, ideally close to that of home-cooked food, i.e. supermarket prices plus a small mark-up;
- promptness similar to fast food’s;
- dish quality and choice similar to restaurant menus.
- market capitalization of Walmart's size for the pioneer
- long-term prosperity for the second explorer
- struggle for survival for the third to (about)the eighth participant
- regret about missed opportunities for the rest
Search where you left it, not under the lamp. Think about core competencies (there’s always room for work, it’s cheap and it pays off), and forget everything else.
"Personalization", dowsing, "missions", teambuilding, needle therapy and pseudo-scientific IT-mythology enrich only crooks at your expense.
"Offline + online" hybrid stores multiply the cons of each type without any of the pluses; the sales floor doesn't become smaller (and warehouses only grow), and there only becomes more people.
A profoundly negative synergy.
Why Big Data doesn’t work in the real sector?
Why it needs no artificial intelligence?
Why it doesn’t embrace blockchains and smart contracts?
Why "neural networks" are a dead end?
Finally, what will really help our real sector leap from the 1980s into the 21st century?
If you have a USP, your business is a success. Have none — it’s all lousy. Humans are no part of this equation.
"Active sales" are your CEO’s auto-training exercise that helps him/her therapeutically conceal the fact of having no USP from their own self.
For if you have one, no "active sales" are needed.
All the "incentives" that your (and any other) HR men can invent will boil down exclusively to inexpensive morale building and gas-lighting your employees.
This is the best case.
For they usually gas-light top management, too.
If a budget is used to manage the costs of the organization, its costs are always higher than they might be without a budget.
An organization drafting sales plans always sells less than it might do.
All Google’s programmers multiplied by all their Indian coders may keep making the algorithms as complicated as possible — till the cows come home, and giving them fancy names that hint at the machine’s ability to think.
Which won’t take them a single step closer to human consciousness.
Every serious-minded observer familiar with the entrails of a big bureaucratic organism will certainly arrive at a stunning conclusion: whatever useful the organism does (if at all), it does it IN SPITE of all guidance notes, directives, and executive orders.
How to stop hindering your company’s employees from earning money for the shareholders.
What replaces "management"?
It is not that none of the categories of enterprise software available on the market is even on track to meet its target; it is not known of any serious attempts at seeking it.
What is the difference between an autocrat and a constitutional government? Standardized business practices are functioning laws that apply equally to all.
Want to transform your business from a Honduras to a Japan — study this.
Google's AI winning the Go game paved an unbelievably wide track for bazillion of publications about powerful, unbeatable neural networks.
Claimed like second to none, AI days are next door, tomorrow no man is needed anymore — behold, technological singularity is there.
Well, to what extent is the buzz justified? Common sense and cybernetics are to be our guides.
The quality of a marketing strategy establishes the maximum possible size of the market share.
Whether you reach these boundaries is decided by how business processes are carried out: the market share you actually occupy.
The wheel and axle system owes its fantastic efficiency to its dualistic nature.
Which is the same thing as Yin vs. Yang, or the unity and struggle of opposites, discovered by Ancient Greek dialecticians.
The traditional organizational structure of a company with its units and departments resulted from a wrong concept dominated in the 19th century.
Money is the only technology for NON-violent organization of human masses that is known to humanity.
With mathematical accuracy, the IEM Paradigm leads to the correct application of money for maximum profit to your business.
Administrative meetings focused on reducing costs increase them by 5% or more (as a result of Parkinson's law).
A universal approach to dramatically reducing business costs based on the IEM Enterprise paradigm.
All bureaucratic management approaches do not work. More exactly, they work (in the long run) to the opposite effect:
— forecasted sales are decreased
— budgeted costs are increased
— hiring marketers destroys marketing strategy
— staff morale is inversely proportional to the budget for HR
... et cetera, et cetera.
The managing mechanism of the free market does guarantee the best possible results in the long term.
At any given moment, a competent dictator can make a more effective decision than the apparently synchronized and unfolding social calculations.
But, no matter how complete the dictatorship, in the long term, it will lose to the free market because of moronic political leaders.
Any theoretically functional management system for a given social organization is an IEM System.
And vice versa, on the basis of an implemented IEM System, a cybernetic optimized management system for a given social organization can be built.Imagine that some cells of a sponge (or any other primitive multicellular organism) claimed themselves as "brain" and started trying to manage the whole sponge.
Why are they managed like day and night inside of the very same company? How to manage Processes and Projects, and how to prioritize one over the other.
The IEM Enterprise model on the operating level. Transformation from "startup —> business" from a cybernetic point of view.
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.
The systemic efficiency of the "old" and "new" economies show no difference after excluding the costs of human labor.
The "human factor" is the only significant difference between the "old" and "new".
There are two pieces of news on business process management.
The primary goal of BPM is not possible to achieve outside the task of managing an enterprise as a whole effectively.
The second piece of news is good.
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