Modular designs create value in the form of valuable real options. But how will that value be realized? In Design Rules, we argue that the value of a modular system will be realized over time via modular design evolution (MDE).
The promise implicit in a modular design is that parts of the system - the modules - can be modified after the fact at low cost. Foresighted actors seeking financial rewards will thus be motivated to pursue these options, and they will exercise the ones that are "in the money" at some future point in time ( the actual date may be uncertain). Exercising an "in the money" option in this case means introducing a new, superior version of a particular module and reaping the economic rewards. The rewards may take the form of higher product revenue, or lower process cost, or both.
from: Design Rules, The Power of Modularity
Modular-Finance seeks to create value... and draws from the Power of Modularity, Biomimicry and Complexity Economics to Design Robust and AntiFragile Systems...and can be applied across the financial Spectrum including Financial Planning, business Strategy, Investment, Policy Decisions and systemic risk models...
Adaptive Systems are Three Dimensional in Nature...vs Interdependent Systems - Two Dimensional Mechanical Ducks...
Sunday, April 26, 2015
Sunday, April 19, 2015
Friday, April 10, 2015
Thursday, April 2, 2015
Monday, March 16, 2015
The World is Modular...
When you add in the human element...The Game Changes...Standing the Test of Time - requires the abliity to Adapt...
Sunday, March 15, 2015
Modular-Finance Theory*
In Theory, Theory and Practice are the same, in Practice they are not...
Therein lies the essence of Modular-Finance Theory - An expanded toolkit for practitioners
It may not be as clean and simple as modern finance theory - but it's a hell of a lot more realistic and hence a helluva lot more useful for practitioners who need to perform, build models and make decisions in the age of Liquid Modernity....Modern finance served us well in the age of solid modernity, unfortunately, that time has passed, Some get it some don't and some will get trapped in the past...
Therein lies the essence of Modular-Finance Theory - An expanded toolkit for practitioners
It may not be as clean and simple as modern finance theory - but it's a hell of a lot more realistic and hence a helluva lot more useful for practitioners who need to perform, build models and make decisions in the age of Liquid Modernity....Modern finance served us well in the age of solid modernity, unfortunately, that time has passed, Some get it some don't and some will get trapped in the past...
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