Process evolution

The control structure is not restricted in any way, so this organization may easily adopt to market changes and evolve and grow almost indefinitely (up to all markets) with constant employee qualification grow. This kind of organization is able to produce items of unlimited complexity (let’s say it is also proportional to qualification as a kind of its measure) that will be required indefinitely by everyone or at least most of people.

Any kind of problems with excessive complexity (that get it to failure) of products can be solved with reasonable planning, common modular development approach and proper quality control measures.

So the question is – what factors limits current economical structs to get to this kind (or similar simple constructs) of self-evolving evolution (which is reasonably efficient and usable to any person in society) ?

Feel free to add some meaningful comments for this topic in our Economics StackExchange discussion.

Making it efficient

This model is quite simple, but I guess it may be easily applied to real world with some additions for initial capital, required controlling quality functions and resources flow shared evenly for creds (is subtracted from sales profit).

When all the data with profitability stats are available to all workers it is quite easy to get clear and reasonable profit distribution among the workers. If we assume that the work of sales (marketing) and efficiency tuning (a kind of management) can be measured in creds and then in real values, so the control function may be handled just as some sort of ordinary work and added to overall work pool.

So we have a highly human involved work pool, independent of exact type with ability to tune it with positive feedback loop from sales and efficiency tuning. Moreover it is absolutely 100% clear to all attendants and the contribution of each employee activity can be tracked with clear stats. Every employee is also positively feedback motivated for his qualification improvement, which also gives additional value gain for him and everyone in this struct.

For more details check it in our Economics StackExchange discussion.

Growth factors and optimization

So in general we have a basic low skilled small portions of value gain to build some initial assets and start some very small sales with intent to grow. To get an increase in quality of our product and thus sales profits we need to attract some skilled professionals.

They don’t need to get training and need some sales shares as a reward. The profitability of the overall portfolio of software assets sales (S) depends on qualification (Q) and amount of work (W), let’s say it is proportional (S = k1*Q*W). So to promote and attract experts we can simply give them some kind of internal fictional currency as shares (lets say just some creds). When an expert is performing work, he is gaining some creds for completion of small required portion.

After some period (two weeks, month) the overall sales (in real values) for period are then interchanged and shared according to the creds amount. The only problem is that no one is trusting anyone, but we can easily handle it with 100% shared data on sales and efficiency of products (let’s say it is available only after some creds limit gained to avoid fraud).

Economic Model structure

Let’s get back to our simple model again. In order not to get to any specific tech complexities we are planning to create an organization to create high quality software in the ever charging market of computers/communications/applied devices. Suppose we don’t have any money or motivating resource, but there are lots of work force distributed around. Also we are not planning to get any credits and start with zero balance to achieve some value gain. The plan is to motivate workers and create self-growing enterprise to create, promote and sell software.

In order to achieve some initial growth we need to hire some kind of low skilled work force for training. They irregularly can make some kind of small work portions that help us to create a starting basic products. To make things clear let’s assume we have to perform only 3 basic activities – create, sell and maintain our software product. So our workforce primarily consists of sales and developers and we can get initial value gain from that based on training employees.

Economic environment

Let’s imagine an ideal market with minimal state regulations and high risk quite uncertain venture investments. To get a simple model lets say it is a specific currently almost indefinitely evolving economic branch with very high human engaged activities requiring as much qualification as possible. It is moderated at the society level (just like common good or commonweal for everyone) reasonably and all contracts are fulfilled with 100% guarantee.

In real world these simplifications may apply to some kind high level scientific research, advanced medicine, experimental technologies, hi-tech capabilities and that kind of staff.

So as currently observed in most current states the organizations don’t tend to evolve and keep growing to some stable size and then go to some kind of decay or deprecation.

The question is – is it possible and how to make a self-growing and self-evolving organization in these conditions ? Are there some fundamental restrictions for these kind of economical structures and what are the major restricting factors ?

There are some ideas on that for this topic in our Economics StackExchange discussion.