Self-Regulating System

A complex system that regulates it’s own performance by so that it never gets too far off-balance and can bring itself back into homeostasis.  Read More

Market Segmentation

A business process focused on defining market segments on the basis of customer demographic or psychographic attributes (such as age, location, culture, etc.). Segmentation is best when it uses the same understandings gained from market and user research used in Environmental Modeling and Positioning. Distinct market segments identify customers who require different products and services (either in configuration, features, pricing, messaging, or support).  Read More

Scenario Planning

Scenario planning is a common technique used in government, academia, and businesses in a variety of industries to identify new opportunities. Scenario planning is a special kind of brainstorming that structures assumptions and a perspective of the future (the scenario) so that a group of people can imagine, in detail, how that future might affect society, markets, and company opportunities. Scenario planning is nothing more than structured fantasy... Read More

Sensitivity Analysis

A procedure in budgeting that uses incremental adjustments to parameters (such as price and sales) to test the effects on growth or company performance. Sensitivity analysis can help companies determine which parameters have the most effect on revenues. Though useful, sensitivity analysis is sometimes criticized because it deals with only parameter of change at a time, which is rarely the case in real markets.  Read More

Sarbanes-Oxley

The common term for the Public Company Accounting Reform and Investor Protection Act of 2002. This set of laws significantly changed accounting and audit standards for public companies in order to improve the accuracy of financial disclosures and protect investors from corporate fraud. The act has significantly increased accounting and audit costs for companies but has restored some investor confidence in corporations. Some major components of the... Read More

Reverse Logistics

The process of collecting used products and materials from customers to be reused, recycled, or upcycled into other products. This process treats these materials as valuable industrial nutrients instead of disposed of as trash. This is the complement to the traditional supply chain and distribution system used to produce and deliver products to customers.  Read More

ROE (Return on Equity)

The amount of profit generated by an organization compared with the amount of money invested by shareholders. ROE is useful for comparing company profitability with others in the same industry. ROE = net income / average shareholder equity  Read More

Resource

Any form of capital available for use. In terms of manufacturing capital, any material or energy available for us in manufacturing, including industrial nutrients that used and recovered from manufacturing processes. In terms of natural capital, natural materials (including sunlight, air, and water) used in an organization or society’s operation or production. Humans also provide are resources, in terms of intellectual capital.  Read More

Renewable

Any material or energy that can be replenished in full without loss or degradation in quality.  Read More

Remanufacturing

The process of cleaning and repairing used products and parts to be used again for replacements.  Read More