THE DEVELOPMENT OF A BUSINESS STRATEGY SYSTEM FROM AN ENTROPIC POINT OF VIEW

For a long period of time the building blocks of an internal strategic process and how this system evolves have been viewed, with few exceptions, as a static, linear and progressive process from conception to its fruition, without the inherent ability to map the evolution of every stage and benchmark the future versions of similar processes on the results of the previous. To have a more dynamical approach to an internal mechanism we have designed and redeveloped this process based on a circular model with different stages, called sub-processes, that have the ability to feed themselves with information in a certain feedback loop and expand or contract when the capital or other variables change. This behavior that is built-in and the structure of the modeled sub-processes is quite similar to self-similar patterns (fractals) and resembles the behavior of natural systems which have at their core the transfer phases based on the laws of thermodynamics. One of the elements that the circular model will provide us, is the evaluation of a narrow usage spectrum of the time, capital and information variables, needed to complete the process. To be more concise, the model will red flag any abnormal usage of the variables based on previous development processes and will prevent any dead-on-arrival projects. As a self-feeding model, to calibrate its sub-process need to run several projects of similar scope so it could proper evaluate the transferred values between sub-processes, it’s recommended to integrate such a model into an resource planning program.