What is ZERI? | ZERI Perspectives | Science Behind ZERI | History

Science Behind ZERI: Five Kingdoms of Nature . Five Design Principles . Five Intelligences . Twelve Axioms

Twelve Axioms of Economics

1. PURPOSE

Merging Economic, Social and Environmental Objectives

- clear purpose for your organisation that responds to social, ecological and financial needs in local communities
- the purpose for your organisations is the DNA that unites – customers, employees, consumer, local communities, suppliers, local government, etc…
- awareness of personal values of stakeholders (employees, consumers, investors, community) and the values they aspire to buy products and services from
- merging of personal stakeholder and company values – reflected in the products, services, brands you provide
- 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

- looking at your system of production and challenging everything from the point of view of adding value to stakeholders
- 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
- 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
- clustering with other organisations who can use your waste as inputs to make their products and services
- identifying under-utilised or negative assets and optimising the use of these assets through creating new products or services

(Ektropy vs. Entropy)

3. PRODUCTIVITY

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

- optimising profit and R.O.C. and minimising costs per unit of raw material - your: organisation, suppliers, customers, consumers, local environment and community
- growing through 100% utilisation of all your resources, and generating value added
turn hidden assets and non-existing cash flow into bottom line contributions for all
- creating shared services with local companies to local communities

(Productivity of Labor - Capital - Raw Materials)

4. CASHFLOW

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

- 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
- providing shared services with other companies to oneself and local communities
- identifying and fully utilising the pockets of core competences in your organisation
- identifying the pockets of information exhaust in your organisation and selling that information to other organisations, 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

- letting the price of your core products and services slide
- retaining your customer and distribution streams through building up depth in your product portfolio
- 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

- reducing bureaucracy, waste, under-utilized assets that are costing consumers money
- 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
- providing extended services and products through partnership with other organisations
- providing products and services which respond to the basic needs of consumers, and which fit the - personal values and vision of these consumers
- recognizing that consumers do not want toxins, unethical products/services or to be lied to.
- practicing transparency and participation in relation to building up the ecosystem, increasing jobs, cutting pollution
- identifying local issues and taking responsibility for them
- creating a strong company brand, a corporate purpose allowing consumers to make a difference while buying your products and services

(Quality vs. Quantity)

7. COMPETITIVENESS

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

8. PLACE

Local Clustered Opportunities

- 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 locally
address local issues, respond to local dreams creating initiatives which address multiple agendas simultaneously
certify your products based on local tradition and culture

(Compete Globally Locally)

9. INNOVATION

Faster and More with Less Risk

- benchmark innovations with the best performance of nature
- build on the biodiversity and the five kingdoms of nature to create clusters of products which rely on the local ecosystem
- impose impossible targets ... like produce at ambient temperature and pressure
- 50% of profits come from new products portfolios where systems of production match systems of consumption
- secure clusters with increased cash flow so that risks are lowered

(Innovation vs. Compliance)

10. DIVERSIFICATION

Diversify Within Your Ecosystem

- converting waste streams into new value added, converting hidden assets into cash flow generating activities
- while maintaining the core business, secure complementary activities
- imagine products and services from within the system instead of searching for solutions outside
- 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)

11. MANAGEMENT

From DNA to the Immune System

- a shared vision, a strong purpose that binds the web together into a network
- 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
- operating without a central command and decision making trusting everyone in the network
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)

12. THERMO-DYNAMICS

Ambient Temperature and Pressure

- integrate and separate at ambient temperature and pressure
- operate an open system
- rely on creativity and innovation to provide leadership

(Entropy vs. Ektropy)