1. MULTI DIMENSION IMPACT ACCOUNTING MDIA KNOWLEDGE A COMPONENT
OF MAN BUILT CAPITAL File: MDIA-p3-04-KNOWLEDGE-150709.odp Peter
Burgess (c) All rights reserved
2. MULTI DIMENSION IMPACT ACCOUNTING WORK-IN-PROGRESS. SLIDESET
STILL IN DEVELOPMENT. UPDATES WILL BE POSTED OVER THE NEXT SEVERAL
WEEKS
3. There has been rapid growth in KNOWLEDGE over the past few
centuries but performance not as good as it could be or should be
... MULTI DIMENSION IMPACT ACCOUNTING
4. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP Sun Financial
Capital Human Capital Man Built Capital Natural Capital Sun SunSun
Financial Capital Human Capital Man Built Capital Natural Capital
Sun EOPPOSSIBILITIES vs ACHIEVEMENTS Tr-Ac-Net A graphic from
around 2002
5. There has been a lack of investment to enable KNOWLEDGE to
be used to the maximum to achieve PROGRESS MULTI DIMENSION IMPACT
ACCOUNTING
6. Investment flows into projects that have a high financial
return based on money profit financial analysis. Investment does
not flow into projects that only have 'GOOD' return that is they do
GOOD for society (people) and the environment (planet). MULTI
DIMENSION IMPACT ACCOUNTING
7. One of my assignments in the late 1980s was to help plan
post-drought recovery in the Horn of Africa. Quite modest
investment in low tech water infrastructure would have made a huge
difference to the quality of life of millions of people. But that
was not to be. Rather a single investment in a big dam was chosen.
This investment gave profit benefit to a big international
construction company with no benefit whatsoever to the people of
the region. In fact it merely disrupted the poor economic rhythm of
the local people. MULTI DIMENSION IMPACT ACCOUNTING
8. In projects with profit potential there has been massive
investment and PROGRESS and PERFORMANCE has been quite amazing ...
MULTI DIMENSION IMPACT ACCOUNTING
9. The OIL AND GAS industry, for example MULTI DIMENSION IMPACT
ACCOUNTING
10. MULTI DIMENSION IMPACT ACCOUNTING Sun Knowledge translating
into Operations Sun BOP Financial Capital Human Capital Man Built
Capital Natural Capital Sun SunSun EOP Financial Capital Human
Capital Man Built Capital Natural Capital Sun
11. KNOWLEDGE has a most unusual property when knowledge is
given to another, there is no loss of knowledge by the donor. This
is win-win. In all other transactions, one party gains while the
other party loses something. This is zero sum. MULTI DIMENSION
IMPACT ACCOUNTING
12. The amount of KNOWLEDGE has been increasing exponentially
for a very long time and it continues. This is potentially very
positive for the future. But not certain MULTI DIMENSION IMPACT
ACCOUNTING
13. Most KNOWLEDGE can be mobilized for good but equally it can
be mobilized for bad. MULTI DIMENSION IMPACT ACCOUNTING
14. And it is not always clear what is good and what is bad
MULTI DIMENSION IMPACT ACCOUNTING
15. In almost every decision there are winners and losers.
Achieving the right balance is a difficult calculus. MULTI
DIMENSION IMPACT ACCOUNTING
16. When decisions are made using traditional money profit
financial analysis, the result will always favor the business
actors. A better result requires that inclusion of a SOCIAL or
PEOPLE dimension so that GOOD for people is taken into account. The
best result is when the ENVIRONMENT (PLANET) dimension is also
included in the analysis. MULTI DIMENSION IMPACT ACCOUNTING
17. Almost all money flows when there is a potential big
winner. Without a big money profit winner there is no investment no
money flow. MULTI DIMENSION IMPACT ACCOUNTING
18. I recall doing some work in Somaliland in the 1990s. An
important road between the capital city and the coast was seriously
degraded. The EU funded consultants to study this problem several
times over a period of about 10 years. Consulting fees paid to EU
experts were estimated to have been over a million dollars, but no
work was actually done to fix the problem. Eventually a local
contractor was funded locally and paid something like $10,000. A
big part of the road problem was fixed but no expatriate benefit!
MULTI DIMENSION IMPACT ACCOUNTING
19. PERSPECTIVE matters! Good profit performance is good for
the owners of a company, but may not be good for other
stakeholders. Profits up may mean payroll down and more stress for
employees and their families, and their community. Profits up may
mean less attention to environmental impact and quality of
customers. MULTI DIMENSION IMPACT ACCOUNTING
20. KNOWLEDGE enables technology, and with investment enables
PROGRESS along a trajectory described by Moore's Law MULTI
DIMENSION IMPACT ACCOUNTING
21. RESEARCH and DEVELOPMENT MULTI DIMENSION IMPACT
ACCOUNTING
22. What is constraining knowledge growth? Can knowledge growth
be accelerated? The conventional business model is a huge
constraint. Investment flows where there is profit potential. Much
of what is really important in the modern world cannot give a money
profit return, although these works will deliver huge impact for
the good of society and the environment. MULTI DIMENSION IMPACT
ACCOUNTING
23. The pace of progress should not be constrained by the
amount of money that those with decision making power choose to
allocate to research and development but constrained by the
capacity of the human brain to understand and solve problems. MULTI
DIMENSION IMPACT ACCOUNTING
24. another is that the PROCESS to get at conclusions from BIG
DATA even if it is OPEN DATA is at the top of a hierarchy and not
close to the issues needing to be addresses. In practice this means
more concentration of power and influence and much less of
distributed initiatives. MULTI DIMENSION IMPACT ACCOUNTING
25. I attended a big conference on information and management
early in the 1990s. I listened to three days of presentations about
how information technology was changing everything in the corporate
world. Traveling home after the conference it occurred to me that
the corporation was like a human being with no neck. The C-suite
(the brain) was making decisions and independently the company (the
body) was also doing its thing but MIS (the neural system) was not
connecting the two in a meaningful way. MULTI DIMENSION IMPACT
ACCOUNTING
26. Fact about a reality Data a data representation of a
reality Analysis to understand what the data means Information
conclusions drawn from the analysis Knowledge people knowing about
the conclusions Wisdom understanding the implications of the
conclusions MULTI DIMENSION IMPACT ACCOUNTING
27. Research and Development adds to KNOWLEDGE MULTI DIMENSION
IMPACT ACCOUNTING
28. Investment / Deployment produces PROGRESS MULTI DIMENSION
IMPACT ACCOUNTING
29. Knowledge is applied rapidly where the profit potential is
good but nothing happens where the performance is only to do with
social or environmental good MULTI DIMENSION IMPACT ACCOUNTING
30. OWNERSHIP OF KNOWLEDGE In order to give incentive for
investing in R&D and building KNOWLEDGE, a system of
INTELLECTUAL PROPERTY (IP) has been created. This allows the owner
of the knowledge to use it exclusively for its own benefit for a
period of time. MULTI DIMENSION IMPACT ACCOUNTING
31. it also allows the owner of IP the ability to constrain
progress by not allowing others to use this knowledge. The
resultant monopoly of knowledge distorts markets usually to the
detriment of consumers. A strategy for profit maximization using IP
rules is visible at its worst in the case of the pharmaceutical
industry. MULTI DIMENSION IMPACT ACCOUNTING
32. OPEN KNOWLEDGE MULTI DIMENSION IMPACT ACCOUNTING
33. An environment of OPEN KNOWLEDGE or knowledge sharing is
the fastest way to expand knowledge, and in some situations to
mobilize knowledge for the good of society as a whole. MULTI
DIMENSION IMPACT ACCOUNTING
34. The PUBLIC LIBRARY was an application of OPEN KNOWLEDGE and
knowledge sharing, and remains an important part of the knowledge
infrastructure. MULTI DIMENSION IMPACT ACCOUNTING
35. Modern information technology now enables INTERNET SEARCH
that makes it possible to access information that exists in digital
form anywhere on the Internet. This is a game-changer because now
everyone has the potential to be well informed MULTI DIMENSION
IMPACT ACCOUNTING
36. or possibly misinformed. MULTI DIMENSION IMPACT
ACCOUNTING
37. THE VALUE OF KNOWLEDGE MULTI DIMENSION IMPACT
ACCOUNTING
38. The value of knowledge is a composite it is part an
absolute value; it is part a function of the investment allocated
to deployment and use of things making use of the knowledge; it is
part a function of the opportunity that exists to use the
knowledge. MULTI DIMENSION IMPACT ACCOUNTING
39. The value of some knowledge is simply that it is a catalyst
that enables other knowledge progress to be made ... it is a
foundation that enables other research to be built. MULTI DIMENSION
IMPACT ACCOUNTING
40. EDUCATION MULTI DIMENSION IMPACT ACCOUNTING
41. EDUCATION is an important part of the KNOWLEDGE ecosystem.
perhaps the most important part of modern education should be to
enable young people to find information and then to be able to
understand the strengths and weaknesses of the information they are
seeing. MULTI DIMENSION IMPACT ACCOUNTING
42. People must be able to see KNOWLEDGE in CONTEXT and
understand that easily accessible digital knowledge may or may not
reflect reality and may not be valid. MULTI DIMENSION IMPACT
ACCOUNTING
43. RESEARCH UNIVERSITIES MULTI DIMENSION IMPACT
ACCOUNTING
44. RESEARCH in the university setting is potentially very
powerful ... but there are problems. MULTI DIMENSION IMPACT
ACCOUNTING
45. RESEARCH priorities are driven by the availability of
funding ... and most funding has an 'agenda' that may or may not be
good. MULTI DIMENSION IMPACT ACCOUNTING
46. RESEARCH results are increasingly being converted into
proprietary intellectual property (IP) that disappears into
ownership entities that facilitate private wealth creation while
stunting the growth of open knowledge and compromising academic
ideals. MULTI DIMENSION IMPACT ACCOUNTING
47. KNOWLEDGE WARFARE MULTI DIMENSION IMPACT ACCOUNTING
48. Knowledge warfare has been around for a long time but is
now a much more critical part of the geopolitical landscape ...
military secrets are being targeted as part of inter-nation
espionage; company secrets are being targeted to gain commercial
advantage; personal data is being targeted to gain criminal
advantage. MULTI DIMENSION IMPACT ACCOUNTING
49. THE SOCATA INITIATIVE MULTI DIMENSION IMPACT
ACCOUNTING
50. The following slides set out the vision of SOCATA (as of
2014) to change the way data are used in the Public Sector. MULTI
DIMENSION IMPACT ACCOUNTING SOCATA 2014 (YouTube) The Vision of
Open Data: Government Leading the Innovation
51. MULTI DIMENSION IMPACT ACCOUNTING SOCATA Vision for Open
Data Development - 2014
52. MULTI DIMENSION IMPACT ACCOUNTING SOCATA Vision for Open
Data Development - 2014
53. MULTI DIMENSION IMPACT ACCOUNTING SOCATA Vision for Open
Data Development - 2014
54. MULTI DIMENSION IMPACT ACCOUNTING SOCATA Vision for Open
Data Development - 2014
55. MULTI DIMENSION IMPACT ACCOUNTING SOCATA Vision for Open
Data Development - 2014
56. An issue that is not addressed by the SOCATA initiatives is
the challenge of 'missing data'. Modern data mining and analysis
enables interesting insights into data that exist, but misses
everything associated with data that have never been collected.
MULTI DIMENSION IMPACT ACCOUNTING
57. My experience suggests that the indiscriminate use of BIG
DATA to analyze problems will be a failure unless there is a
serious effort to include data about everything and not merely the
data that flows easily around social networks and digitally active
consumers. MULTI DIMENSION IMPACT ACCOUNTING
58. Follow up: Request for Feedback Getting these ideas fleshed
out into a clear, simple but comprehensive structure is a big job
and remains a work-in- progress. Many organizations are making
progress with this, but there is no broad universal framework yet
that will enable all the pieces to come together and work
efficiently. I would like to get feedback from anyone and everyone
to help move this initiative forward. While I have some clear
concepts about much of this architecture, there are many details
that I do not know enough about and need help. So, please feel free
to contact me ([email protected]). Please put something relevant
and catchy in the subject line. MULTI DIMENSION IMPACT
ACCOUNTING
59. Some links and contact information: Peter Burgess
[email protected] Peter Burgess LinkedIn profile
https://www.linkedin.com/in/peterburgess1 Link to
TrueValueMetrics.org website http://www.truevaluemetrics.org/ Link
to navigation for MDIA slidesets
http://www.truevaluemetrics.org/DBadmin/DBtxt001.php?vv1=list0200-Burgess-p3-Slidesets
MULTI DIMENSION IMPACT ACCOUNTING