Science Behind ZERI

Twelve Axioms of Economics


Merging Economic, Social and Environmental Objectives

  1. Clear purpose for your organization that responds to social, ecological and financial needs in local communities

  2. The purpose for your organizations is the DNA that unites – customers, employees, consumer, local communities, suppliers, local government, etc…

  3. Awareness of personal values of stakeholders (employees, consumers, investors, community) and the values they aspire to buy products and services from

  4. Merging of personal stakeholder and company values – reflected in the products, services, brands you provide

  5. Making decisions on a day to day basis in relation to social, ecological and financial bottom line

    (Upsizing vs. Downsizing)

    2. GROWTH

    Increasing Output with Less Input

  6. Looking at your system of production and challenging everything from the point of view of adding value to stakeholders

  7. Re-engineering existing production processes so they create minimum waste, but waste is permitted
    creating new products and services from what you traditionally regard as waste

  8. Using innovative raw materials which are far more effective in relation to environment, waste, society and cost and which can stand the test of dramatic growth in demand

  9. Clustering with other organizations who can use your waste as inputs to make their products and services

  10. Identifying under-utilized or negative assets and optimizing the use of these assets through creating new products or services

    (Ektropy vs. Entropy)


    Increasing Total Productivity, Whilst Increasing Jobs and Eliminating Non-Value Added

  11. Optimizing profit and R.O.C. and minimizing costs per unit of raw material - your: organization, suppliers, customers, consumers, local environment and community

  12. Growing through 100% utilization of all your resources, and generating value added
    turn hidden assets and non-existing cash flow into bottom line contributions for all

  13. Creating shared services with local companies to local communities

    (Productivity of Labor - Capital - Raw Materials)


    The Value of the Whole is More than the Sum of the Parts

  14. Producing/ providing more products and services that provide new cash flow streams vs. producing/ providing one core product or service that generates just one cash flow stream

  15. Providing shared services with other companies to oneself and local communities

  16. Identifying and fully using the pockets of core competences in your organization

  17. Identifying the pockets of information exhaust in your organization and selling that information to other organizations, customers or consumers who would value that information

    (Integrated Cash Flow vs. Consolidated Cash Flow)

    5. PRICE

    Allow Price of Core Product to Slide to Zero

  18. Letting the price of your core products and services slide

  19. Retaining your customer and distribution streams through building up depth in your product portfolio

  20. Using existing distribution streams to send new innovative and clustered products and services which are reflecting the quality and the vision of your system of production and consumption

    (Value Added vs. Product Margin)

    6. QUALITY

    Offering Higher Quality at Lower Prices

  21. Reducing bureaucracy, waste, under-utilized assets that are costing consumers money

  22. Fully utilizing your resources (raw materials, people, time, cash, information, ecosystems, tradition, culture) so you are creating optimum value from the point of view of consumer, ecosystem and local communities

  23. Providing extended services and products through partnership with other organizations

  24. Providing products and services which respond to the basic needs of consumers, and which fit the - personal values and vision of these consumers

  25. Recognizing that consumers do not want toxins, unethical products/services or to be lied to.

  26. Practicing transparency and participation in relation to building up the ecosystem, increasing jobs, cutting pollution

  27. Identifying local issues and taking responsibility for them

  28. Creating a strong company brand, a corporate purpose allowing consumers to make a difference while buying your products and services

    (Quality vs. Quantity)


  29. Competing on the Basis of Economies of Scope (Economies of Scale vs. Economies of Scope)

    8. PLACE

    Local Clustered Opportunities

  30. Build on the biodiversity and the five kingdoms of nature to create clusters of products which rely on the local ecosystem respond to local needs with local solutions with what is available

  31. Locally address local issues, respond to local dreams creating initiatives which address multiple agendas simultaneously

  32. Certify your products based on local tradition and culture

    (Compete Globally Locally)


    Faster and More with Less Risk

  33. Benchmark innovations with the best performance of nature

  34. Build on the biodiversity and the five kingdoms of nature to create clusters of products which rely on the local ecosystem

  35. Impose impossible targets ... like produce at ambient temperature and pressure

  36. 50% of profits come from new products portfolios where systems of production match systems of consumption

  37. secure clusters with increased cash flow so that risks are lowered

    (Innovation vs. Compliance)


    Diversify Within Your Ecosystem

  1. Converting waste streams into new value added, converting hidden assets into cash flow generating activities

  2. While maintaining the core business, secure complementary activities

  3. Imagine products and services from within the system instead of searching for solutions outside

  4. Operate within the web, with options and choices ready for implementation and always prepared to improve along a path of co-evolution

    (Diversification vs. Substitution)


    From DNA to the Immune System

  5. A shared vision, a strong purpose that binds the web together into a network

  6. Everyone in the company is an integrated strategic thinker, challenging "do as usual" and prepared to provide feedback on how to improve and sharing knowledge a sense of responsibility and a desire to go over to action

  7. Operating without a central command and decision making trusting everyone in the network

  8. Agree to target total productivity, and embark on a never-ending quest for ever more value with what one has

    (Central Nervous vs. Immune System)


    Ambient Temperature and Pressure

  9. Integrate and separate at ambient temperature and pressure

  10. Operate an open system

  11. Rely on creativity and innovation to provide leadership

    (Entropy vs. Ektropy)


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