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Date: 2025-04-04 Page is: DBtxt001.php txt00005116 |
For more on this contact Peter Burgess
TVM has a view of Business Intelligence (BI) that is not only about the impact on the profit of the organization and the price of the stock, but also about impact on people, place and planet.
Modern technology has enabled productivity that facilitates profitable production with many less workers than in times past. This ought to mean a better economy and society, but in fact it has resulted in a major reduction in the bargaining power of labor and their share of the economic surplus they produce.
Over the past 50 years, there has been a huge increase in profits of corporate organizations and the remuneration of high level management, while during the same period the wages and benefits earned by labor have increased very little, if at all.
The purpose of economic activity should be to improve the quality of life for people, to improve the state of the place (community) and to improve the condition of the planet. The valuadd from economic activity is more important than the money profit results that benefit the investors class.
A comprehensive BI along the lines of TrueValueMetrics (TVM) would address the question of impact on people, impact on place and impact on planet. A key first step is to develop a way to quantify value so that the analysis can be as rigorous as money profit accounting.
TVM analysis of valuadd uses the accountancy concept of balance sheet and P&L accounts to report on state, progress and performance of organization, people, place and planet.
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The text being discussed is available at http://www.truevaluemetrics.org |
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