Prd 019 What EXACTLY IS the Cubic Business Model? Created by James on 6/23/2013 2:02:08 PM
What EXACTLY is this thing that I call the Cubic Business Model™ or CBM™?
1. Logical representation of the organization
The Cubic Business Model™ (CBM™) is a logical, structured representation of any organization – what we do (function) and where we do it (location) to a level of precision that is far beyond traditional approaches
2. A holistic and integrated set of standards and methods
The JAR&A CBM approach is the culmination of over 1,000 hours or unremunerated Research and Development in 1990 and the practical application of this technique over more than 20 years
3. Software to build and maintain the model
Because of the very high standards of precision that are required to achieve a viable and sustainable model that accurately models the business we have developed software to assist with building and maintaining the model. This software, currently in its second generation is called “GL Builder”
4. Macro “activity based costing” model
It is a coarse but highly reliable high level activity based costing model
5. Unitary ownership of every cost and revenue element
Correctly implemented the CBM gives unitary ownership of every division à location à function à cost / person / asset, etc bin
6. A governance model for performance measurement
The CBM is therefore a governance model that provides a mechanism for the business to uniquely define accountability for every logical element of the organization
7. Inherently stable and long lasting
Because it is based on a fundamental first principles analysis of what we do and where we do it the CBM is inherently stable over long periods of time
8. A data logical model that makes inquiry simple
The CBM provides a logical model in the data that makes slicing, dicing, drill-down and roll-up of data corresponding to the logical building blocks very easy
9. A collection of precision taxonomies
The CBM is built in accordance with ALL the fundamental standards and principles of Strategic Engineered Precision Taxonomies (SEPT™)and Precision Configuration™ and therefore embraces and delivers all the benefits of these concepts
10. A systematic framework for reporting
CBM provides a systematic framework against which combination and roll-up of reports to all levels of supervision and management can be quickly and easily accomplished
11. The foundation on which all decision support is based
Because it accurately measures the real world the CBM becomes the foundation on which supervisory, management and executive decision making inquiry is based and when implemented in accordance with the disciplines that form part of the CBM concept it is largely self-auditing leading to significant reduction in audit costs
12. Gives rise to system operational efficiencies
Because it is so logically structured and because there is a such a high level of ownership, allocation of transactions becomes faster and more accurate frequently resulting in a reduction in administrative and other staff costs
Taking all these factors into account the JAR&A Cubic Business Model is an accounting innovation that every progressive business should acquire
I look forward to the opportunity to discuss this with you J
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