Logic of an Integrated Business
The business must be integrated from several perspectives
The business must be integrated for proper organization and management from several perspectives:
- Management phases for organization, planning, directing, and controlling must be integrated to use the same structure and set of information
- Operations and development must be integrated as one continuum to fit development as part of the strategy and to properly utilize developed solutions
- Capital utilized by the business must be integrated as one set to manage the commonalities of all capital utilized, to organize capital for support, and organize capital again for utilization
- Results produced by the business must be integrated as one set to manage the commonalities of all results and to manage relationships between results
- Business processing must be integrated to utilize managed capital in processing to produce managed results in one integrated business structure
- Information must be integrated to capture actual business data and to integrate information capital to produce information solutions and to integrate the information capital solutions to produce results
The business can be properly organized and managed only through one integrated business structure that is utilized for integrated organization, management, operations, and development through all management phases.
20th century management cannot integrate the business or business entities
The 20th century business today is not integrated. 20th century management lays incompatible structures for organization, planning, management, and accounting over the business. These overlaid structures prevent actual business management and business integration.
Therefore, the current 20th century enterprise is unable to integrate management, operations and development, business processing, capital utilized, results produced, and information capital and solutions. Overlaid organizations, strategies, business processes, information systems, charts of accounts, control panels and scorecards, etc. cannot even be aligned, much less integrated into one consistent structure.
Capital that is labeled as “intangible assets” and is not defined as performance solutions cannot be integrated. Economic output results that are randomly identified as other entities and not managed as results cannot be integrated or inter-related, or integrated with performance to integrate the business. Information that is managed as technology and related to poorly-defined contrived overlaid entities, rather than built up from actual business data, cannot be integrated.
Management organization, planning, directing, and controlling is integrated by one business structure
20th century management has never integrated the traditional phases of management, since organization uses an organization structure, planning uses a corporate planning structure or map, directing uses various business processes and systems, and controlling uses a contrived chart of accounts. Each structure is contrived on its own. It is difficult to blend separate structures into one integrated whole.
The only way to integrate the phases of management is to use one business structure for all business organization, strategic planning, day to day business direction, business data capture and recording, and financial and non-financial business information reporting for control.
Operations and development is integrated as one continuum to develop as part of the strategy and to utilize developed solutions
Capital development is separated from the business and business operations as separate capital planning structures and project structures. 20th century management does not manage the results that provide the benefits and return from development and does not manage the capital to be developed as specific performance solutions to know and track capital development costs. Developed capital is laid over the business and cannot be integrated with the business for utilization and a managed return.
Capital development originates from operations either as a need to produce new results or as result symptoms (quality is low, sales are down, information is lacking, etc.) that indicate a need for new capital in performance solutions to improve the result. Capital development is planned to develop solutions to add value to results. Capital development has its own business structure to utilize project capital to produce new enterprise results and performance solutions as project results. Development costs and documentation is implemented for new solutions to produce new result value in operations. Capital development is then integrated again with operations to ensure that new capital is utilized to add result value over the payback period, to gain the return on investment.
Capital is integrated to manage the commonalities and to organize capital for support and utilization
Capital is not defined as performance solutions in 20th century management. Therefore, capital cannot be managed for integrated capital information and support. Capital cannot be managed to provide performance solutions needed. Capital cannot be integrated with other defined solutions for utilization to produce specific business results.
Capital must be defined and managed as specific performance solutions in one integrated set of performance solutions to provide common definitions and to manage the commonalities of all capital. The support responsibilities, category, class, costs, effectiveness, and other attributes must be known for all performance solutions in the set in order bring together and integrate like capital for professional support and to further integrate capital that must be utilized together to produce results.
Results produced are integrated to manage their commonalities and relationships
Results are not defined as a set of economic outputs in 20th century management. Therefore, the common characteristics of results and relationships between results cannot be managed.
Results must be defined as one set to define and record their commonalities and relationships. Results can then be integrated as needed by the business into result sets and result chains and to know result impacts, accumulations, and allocations. Result assignments must be integrated to know organizational assignments and management responsibilities, which must be managed as attributes of results.
The Business is integrated to utilize managed capital in processing to produce managed results as one business structure
The 20th century enterprise cannot integrate business processing, since the business is not managed and the results produced and performance solutions utilized are not defined.
The most important integration is the integration of business processing to integrate the integrated set of performance solutions utilized with the integrated set of results produced. Results and performance are integrated into one integrated business structure for use by the complete business. Integrated results and performance enable development, utilization, and support of the proper solution to produce a specific result and optimization of cost-effective performance utilized to produce high value and quality results.
Information is integrated to capture actual business data, to manage information capital, and to utilize information capital solutions
20th century management does not manage the business, so actual business data cannot be captured and managed as information. Data is captured related to overlaid structures with independently contrived sets of information entities. Each organization, plan, process, information system, account, performance, project, human resource, financial, and other structure collects information on its own set of entities that do not describe the actual business and often conflict with each other. This produces enormous information complexity, while maintaining little information of actual worth to the business.
Information must be integrated related to the business. It starts from data captured on performance solutions utilized and results produced. Integrated business information can be maintained in five information sets for five main entities: results, performance solutions, capital, enterprises, and time periods. Information can be inverted by attribute for organization, responsibility, and other categorizations and shown together with other integrated entities in a set. Other information is maintained to support a specific result or performance solution. All information maintained must be integrated in an Enterprise Information Base and related to specific results and performance solutions for access by the business. Information solutions produced must be integrated together to be utilized to produce a specific result or to utilize a specific performance solution. In this way, all business information builds on business data and all information solutions provided can be utilized by the business.
An Integrated Business, much discussed in 20th century management, can only be realized in 21st Century Management
This is the logic of an integrated business, which has been talked about extensively, but never realized, in 20th century management. The business must be organized first into an integrated business structure for integrated 21st Century Management.
