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Dresden 016beta2 20100421 1 Slide Per Page e
Dresden 016beta2 20100421 1 Slide Per Page e
Peter Bretscher,
Founder and owner,
Engineering Office for Business Development
Ingenieurbüro für Wirtschaftsentwicklung, Eggersriet / Switzerland
Function in the Ing.Büro: Advisor to organizations in the design of economic steering and management
systems that integrate the intangible perspective
Engineering background (worked 20 years in several functions along the whole value chain of an international R&D and
manufacturing company based in Switzerland)
Developed over the last 20 years the “Business Engineering System” (Tools for Business Administration)
a MindSet and models for structuring and quantifying the tangible and intangible resources.
In addition he is supporting companies, consultants, and other organizations in innovation and project management, in
intellectual property and patent management, and in setting up business plans and defining enterprise strategy
He has initiated and is leading the “bengin” project. Its mission is to facilitate the awareness for and further development of
management concepts that enhance the traditional economic model
Since 1994 he is teaching business engineering und business planning at the University of Applied Sciences in St. Gallen,
Switzerland.
E-Mail: peter.bretscher@bengin.com,
Website: http://www.bengin.com/, Blog: http://www.bengin.net/wp/, Twitter: http://twitter.com/peterbretscher
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Mapping values
© 2009 bengin
bengin
Agenda
Development of Economy
Innovation of Products
- and Economic MindSet as a Product
3
Mapping values
© 2009 bengin
bengin
Development of economic assets
Relative significance
of economic goods
100
intangible goods
80
60
40
20 tangible goods
5
Mapping values
© 2009 bengin
bengin
Summary
«Many of the patterns of nature we
can discover only after they have
been constructed by our mind.»
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Mapping values
© 2009 bengin
bengin
Agenda
Development of Economy
Innovation of Products
- and Economic MindSet as a Product
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Mapping values
© 2009 bengin
bengin
Idea to Innovation
Phase of innovation: 5%
Examples:
Concrete 40 28 20 years
Inforced concrete 22 7 18 years
Aluminium 29 53 26 years
Telephone ? 14 2 years
Radio 56 13 2 years
Radar 29 2 1 years
TV 22 22 8 years
Computer 115 9 5 years
ICs 40 2 3 years
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Mapping values
© 2009 bengin
bengin
Development of Business Theory
(S-Curve of Product Development)
Rational MindSet II
Additional:
Intangible Assets
Subjective Value Metric
1782
Anna Goeldin Rational MindSet I
Last witch beheaded
(Switzerland)
Classic:
Tangible Assets
Monetary Value Metric
Mises
Adam Smith 64 Bit
Marx 32 Bit
Moral Wealth Keynes
Sentiments of Nations 16 Bit
Gauss
1759 1776 Schumpeter 8 Bit
4 Bit MS-DOS
Towne Taylor
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Mapping values
© 2009 bengin
bengin
Three Worlds – trigger for invention?
10
Mapping values
© 2009 bengin
bengin
World 3: Six interdependent fields
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Mapping values
© 2009 bengin
bengin
World 3: Six interdependent fields
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Mapping values
© 2009 bengin
bengin
Summary
«Count what’s countable.
Measure what’s measurable.
Make measurable what’s not measurable.»
Galileo Galilei
Tools for mapping economy and the rules for planning and reasoning
business objects are divised in six interdependent specialized fields
of profession.
In order to have an reasonable impact all areas/fields have to work on
solutions.
Even if a coordinator would be an idea....
I expect, that the development will follow a „swarm behaviour“.
The direction is driven by the need for:
(i) a framework that structures the intangibles and
(ii) a value-metric that allows calculation with subjective values.
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Mapping values
© 2009 bengin
bengin
Agenda
Development of Economy
Innovation of Products
- and Economic MindSet as a Product
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Mapping values
© 2009 bengin
bengin
Enhancing Paradigms
Resources
Resources
Objects
Objects
Real
Real
Numbers
Numbers
Unit:
CHF, $, € Objective Numbers
Imaginary
Imaginary
Numbers
Numbers
Unit:
Subjective Numbers
iCHF, i$, i€
Implicit Values Complex
Complex
Numbers
Numbers
Unit:
CHF/iCHF, $/i$, €/i€ Vector
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combined Mapping values
© 2009 bengin
bengin
Summary
«It is the theory which determines
what we can observe.»
Albert Einstein
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Mapping values
© 2009 bengin
bengin
Agenda
Development of Economy
Innovation of Products
- and Economic MindSet as a Product
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Mapping values
© 2009 bengin
bengin
The Vector
y
4 vectors
of objects
Value b
Vector = a + b
Adding
vectors
Value a
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Mapping values
© 2009 bengin
bengin
Vector Type 1
More samples:
http://bh.bengin.com
http://www.bengin.net/soft/vektorbeispiele01_d.htm 20
Mapping values
© 2009 bengin
bengin
Vector Type 1 (Aggregation and Drilldown)
Functionality
subjective qualitative / subjective
customer value Brand / Image
(of the product) e
nc
quantitative / financial
a
or m
P erf
)
Body / nd
Design pou
Î R&D om
effectiveness l ( C
ta
To Drill-
Down
Chassis
Engine
120
Public
Service )
nt s
100
Departments rt me
pa
Effects (subjective citizen perspective
d e
9 Police&Justice ice
80
serv
8 Others blic
f pu
(o
7 Healthcare 60 nc e
a
6 Economy rf orm
Pe
5 Education 40
4 Infrastructure
20
3 Finance
2 Defense
0
1 Foreign Affairs 0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000
Costs
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Mapping values
© 2009 bengin
bengin
Vector Type 1 (practical application)
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Mapping values
© 2009 bengin
bengin
Vector Type 2: Linking „objective“ with „subjective“ axis
subjective
(intangible) view
intrinsic value
use value of
investment for
investor A
uv A = (p A)2 – (bv)2
use value of
investment for
investor B
uv B = (p B)2 – (bv)2
12000000000 9000000000
97 1990
97 8000000000
10000000000 1991
7000000000 96
1992
8000000000 96 6000000000 1993
98
Implicit Values
6000000000 5000000000 1994
99 98
4000000000 1995
4000000000
3000000000 1996
2000000000 2000000000 1997
1998
0 1000000000
1999
1996
1997
1998
1990
1991
1992
1993
1994
1995
1999
0 99
0 2E+0 4E+0 6E+0
9 9 9
Explicit Values
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Mapping values
© 2009 bengin
bengin
14 types of industry (Sveiby)
iV
400.00
350.00
Food
300.00
Media
Services
Electronic
250.00
Information Technology
Mechanical Industries
Insurance
200.00
Steel
Electricity, Gas
Wood Industries
150.00
Bank
Automobil
Real estate
100.00
Health
50.00
0.00
0.00 20.00 40.00 60.00 80.00 100.00 120.00
mV
Source: Morgan & Stanley Capital International World Index; Cited in: Sveiby, Wissenskapital; Seite 23; Mi-Verlag 1998
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Mapping values
© 2009 bengin
bengin
Intangible Assets or Shareholders Profit Expectation?
implicit
value
[i - Mia]
Coca-Cola
80
75
45
40
The question remains:
35 Is the implicit Value given by the
30
McDonald's
real Value of the company?
25
Ford
Is it given by some marketing tricks?
20 Which part of it is made by the
15
Shareholders Value Expectation?
10
5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 explicit value
[Mia]
27
Mapping values
© 2009 bengin
bengin
A better model for new decisions
10'000
8'000
7'000
implicit Values
6'000
5'000
4'000
3'000
2'000
Management could use the
potential more effective.
1'000
0
0 1'000 2'000 3'000 4'000 5'000 6'000 7'000 8'000 9'000 10'000
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explicit Values Mapping values
© 2009 bengin
bengin
Tracking the development of an enterprise
1'400
92
Question:
1'200 95
"What happened in the year 1996?“
1'000
93 94 Answer:
implicit axis [ Mio iCHF]
800
Part of enterprise sold.
96
600 2nd Question:
Is this loss of intangible values compen-
400 sated by the price received for the sold
part of enterprise.
200
Answer: ?
0
0 200 400 600 800 1'000 1'200 1'400 1'600
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Mapping values
© 2009 bengin
bengin
Summary
When you can measure what you are speaking about and express it in numbers,
you know something about it; but when you cannot measure it, when you cannot
express it in Numbers, your knowledge is of meagre and unsatisfactory kind.
Lord Kelvin
After the relativity of time for the physicists 100 years ago, an analogical
step can be made by economists with the relativity of value.
It will enable a more sustainable economy.
30
Mapping values
© 2009 bengin
bengin
Agenda
Development of Economy
Innovation of Products
- and Economic MindSet as a Product
31
Mapping values
© 2009 bengin
bengin
Summary
«Many of the patterns of nature we
can discover only after they have
been constructed by our mind.»
I am very optimistic, that the economic theory will reach a higher level of
applicability.
An enhanced economic paradigm (in that intangibles and subjective
values will count) will improve the reasoning and decision process
and in it‘s consequences will enable a new dimension of wealth.
Tree samples of influence we see at that time:
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Mapping values
© 2009 bengin
bengin
Four Main Points
1. Structure of Enterprise
2. Measures and Metrics
3 Offerings
7 Processes Enhanced System of Measures
6 Primary-Resources that Integrates Intangibles
and Subjective Metrics
3. Strategy of Enterprise
4. Optimizing Value Net
Outside-In
and From
Inside-Out supplier of supplier
to
customer of customer
33
Mapping values
© 2009 bengin
bengin
Four Main Points
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Mapping values
© 2009 bengin
bengin
Back- and Frontside of the Economics MindSet
Classic Rules,
Subjective Experiences,
Standards and
Values and Believes
Value Metrics and Measures
35
Mapping values
© 2009 bengin
bengin
Back- and Frontside of the Economics MindSet
„imaginary“ business economics „traditional“ business economics
„subjective“ Values, not tangible, but real „objective“ Values [$, £, ¥. €, CHF]
Imaginary P&L of potential Classic P&L
O I Rights O In
Rawmaterial -
Dismissals -
Tools, Means -
Engagements +
Outsourcing - Services Wagues Mind
Wagues Hand -
-
Absences -
Sales Rights +
Death --
Sales Services +
Intell. prop ++
Sales Products +
Profit-/Loss
P/L
----------------------------
Products
----------------------------
Sum + -
Summe + -
Design of products
(properties) Product calculation
36
Mapping values
© 2009 bengin
bengin
Pricing Values?
potential of an enterprise,
values of an enterprise
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Mapping values
© 2009 bengin
bengin
Pricing Values?
Introducing
intangibles
axis for
Structure*)
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Mapping values
© 2009 bengin
bengin
And now?
A long journey begins with just one step.
Chinese
peter.bretscher@bengin.com
Mobile: ++41 79 650 49 04
Eggersriet, Switzerland
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Mapping values
© 2009 bengin
bengin
bengin
Beyond Limits of Classic Business Paradigms
Thank You
Web http://www.bengin.com
Blog http://www.bengin.net/wp/
Twitter http://twitter.com/peterbretscher
Special Website http://www.bengin.net/dresden/
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Mapping values
© 2009 bengin
bengin
backing slides
bengin
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Mapping values
© 2009 bengin
bengin
+ Intangibles [i$] Q I: Transform -T/+I
in New projects
Revisions of offerings
QI Q II Insourcing/merging
....
Why Metrics?
% i$
- comparing, comprehensible, reproducible
- Making rationale (and indirect) communication easier.
% i$
$
4. Quantitative Metrics
Measures reduce need
$
(multidimensional)
for interpretation
3. Quantitative
$
Metrics (linear)
$
for numerical or
graphical
1. Normative "Metrics"
calculations.
Principles, ....The xx "Commandments"
Axis of time
43
Mapping values
© 2009 bengin
bengin
Von verschiedenen Organisationen in verschiedenen Projekten
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Mapping values
© 2009 bengin
bengin
Innovating Business Models
Technologies
new
old
Products Products
+ Services + Services
+ Rights (IP)
45
Mapping values
© 2009 bengin
bengin
Measuring performance
Counting Values
i$
implicit values
Potential
Invest
explicit values $
generated earnings
46
http://www.performanceprofile.com Mapping values
http://www.balancedscoremap.com © 2009 bengin
bengin
Value (Price) Development of Paper
(Shareholders view)
iV
3000 Mio
2500 2'520
2000 1969
1000
648
551
500
97
0 0
mV
0 10 20 30 Mio
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Mapping values
© 2009 bengin
bengin
Explained world
Value
48
Mapping values
© 2009 bengin
bengin
Color measures
49
Mapping values
© 2009 bengin
bengin
1D – 2D rulers, metrics
50
Mapping values
© 2009 bengin
bengin
Vector: Velocity
51
Mapping values
© 2009 bengin
bengin
Next step: Focus on economic MindSetting / Paradigms
52
Mapping values
© 2009 bengin
bengin
New MindWare & SoftWare Æ quantum leap in the
simulation and planning of todays economy.
Solutions
(Form & Content)
Applikations Applications
MindWare
SoftWare
Hardware
Real economy
53
Mapping values
© 2009 bengin
bengin
Basics of 2D-Value-Vector
x, y = two arbitrary properties of an object
y
Illustration 1 x y x y
Sparten Kunden-
x Turnover Retouren
gewichtet zufriedenheit
y [i$]
x1 x2 Samples
Sum of Share
Sum of balance Shareholder Value
Price