Black Box

48 sec read

Trades are amazing. Trade enables you to optimise your endowed portfolio. That is you can change what you have, your initial endowment, into something you like more. We can describe business models as a series of transactions. A recursive transactional algorithm that reliably grows the value of our portfolio of possessions and beliefs about reality. Well, we can but then we have to get rid of some old paradigms. Or, actually just the one.

The value chain.

Spoiler alert…

Here is what trade (transaction) analytics will look like when we’re done. See how awfully simple the third column is.

ManagerialMeaningTransactional
CustomersFuture, historic and current trading agents who have a proclivity for paying you money.Some Traders
SuppliersInverse customers somehow.More Traders
ConsumersCustomers that aren’t suppliers themselves, i.e. agents without subsequent external transactions.Traders
ProducersSuppliers that aren’t customers.Traders
Customer JobsExpected subsequent external and internal transactions following this particular transaction.Internal Trades
Supplier JobsExpected external and internal transactions preceding this particular transaction.Trades
ManufacturingTransactions that trade some inputs for some outputs.Internal trade
MarketingTransactions where the demand is beliefsTrade
ResourcesOutput of some transactions intended as inputs for internal and external transactionsStock of trading inputs
ChannelsTransactions that change space and time dimensions of resourcesTrade
RevenueOutput of transactions with customersValue of Trade outcomes
CostsDifference in Input for transactionsHistoric Value of trade inputs
EmployeesSuppliers of workTraders
BanksSupplier of loansTraders
ShareholdersSupplier of capitalTraders
PublicSupplier of Licence to OperateTraders
TaxesSupplier of GovernmentTrades
EtcMore yadayadaTrade

Value chains are bogus

How we can tell you’re a customer? My bank just paid interest on my savings account. And since they are paying me, they must...
bramalkema
1 min read

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