sFirm Economics

The Synectic Fractal Integrated Relationship Methodology (sFirm) approach to economics is a combination of two rather distinct paradigms; Fractal Relationship Modeling and Integrated Resource Management.

Synectic Fractal Relationship Modeling allows a complex system of relationships to be expressed in terms of a basic fundamental bond between two objects; be they tangible or intangible. Most systems of this type focus primarily on modeling the basic superstructure, in either two or three dimensions, without addressing the consequences of how that system interacts with other systems and the dynamics that would occur as a result. A fractal relationship study is a much more detailed examination of the entire multi-dimensional system as a whole and how the relative strengths of each relationship bond reach new states of equilibrium as they are brought in contact with other open or closed systems.

To visualize this better, consider the simple example of combining one mole of Sodium with one mole of Chlorine. Each element on its own has its own unique properties, neither of which is compatible with human consumption in its raw form. But combined they form a new association with drastically different but yet predicable properties in the form NaCL, or common table salt. The bonds at both a molecular level and at a sub atomic level each have their own unique properties which, once understood, are easily adaptable to other chemical synthesis. It is this recombination of relationship systems that Fractal Relationship Modeling seeks to define and understand.

Integrated Resource Management is a unique form of economic theory in which there does not exist the concept of “a store of wealth”. All individual economic decisions, and therefore decisions related to the use of resources, are based on the marginal benefits of consumption, independent from the marginal cost of consumption. The difference is one of relationship allocation in the overall economic equilibrium. Cost relationships in traditional economic theories usually do not take into consideration the overall cycle of resource flows (consumption and renewals) preferring to rely on financial or monetary indicators to map such flows as they are far easier to measure.  This is where Fractal Relationship Modeling provides  for greater insights as it maps a more complete picture of the actual economic conditions and not simply the financial equivalents.

The theory goes further however in recognizing that for any substantially large system of relationships, the pattern of resource renewability is impacted in greater magnitudes for each new consumption process that is added to the system. In a sufficiently large system, with finite resources available, further consumptive processes can only be added to the system in such a method as to maintain the overall equilibrium, otherwise the system becomes unsustainable and will collapse.

The combination of these two ideas, relationship modeling and resource management, can potentially lead to the establishment of business systems which represent optimal efficiency and hence use the minimum amount of “energy” in a sustainable environment. It should also be able to establish parameters that can be used to determine the correct equilibrium points that a business needs to focus upon for expansion, contraction, merger and dissolution strategies.

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