Cybernomics

ECOnomics

An new economic theory proposal:

Jean-Jerome C. Baudry, Founder and CEO of Cybernomics®, presents a theory that when a concept unites two sometimes seemingly opposite forces as are self-interest (will) and the greater good or economic prosperity and environmental sustainability, you have the driving force or catalyst that spawns a never ending cycle of innovation and socio-economic gain. Few times in the history of humankind has there been a tangible opportunity to create a financially and environmentally sustainable Economy. As companies would be committed to reducing their costs, being more efficient, increasing their bottom line they are now able to reduce their environmental impact at the same time. The incentive is overwhelming to “do the right thing” for the environment as it translates as being equally beneficial for the bottom line.

An important element to this is defining the true Total Cost of Ownership for any business activity or purchase.

Ceteris paribus, we define the STCO (Sustainable Total Cost of Ownership) =

RC X (CAPEX + OPEX+ DISEX + CARBEX + TAX/PENALITY - Tax Credit)
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(CHC)

i.e. STCO = Risk Coefficient X (Capital Expenditure + Operating Costs associated with expenditure + Disposal Costs associated with expenditure + Carbon Costs Associated with Expenditure + Carbon Taxes or fines – Carbon Credits/Trade Value) divided by the Corporate Health Cost (i.e. Morale and overall health conditions leading to performance and attendance vs. absenteeism or attrition).
We equate the calculation based on measurements of time 12,24,36 and 48 months depending on the planning or budgetary horizon.

That is why we strongly advise the business community to make sure that their RFP takes these factors into account when setting budgets and evaluating competing solutions and technologies. It is also necessary to obtain the right expertise up front.