Please contact us for a consulting project
to apply OiCOS economic modelling technologies for your product and organisation. We call our technology and method of analysis the Economic Engine. Where is it applicable and what is it?
Areas of Application
Is your product a complex mixture of human decisions, economics, technology and software? Do you provide complex models to your clients? Energy communities? Virtual power plants? Complex banking solutions? Auction systems? Any other complex organisation?
There are different points of views on what modelling is about. The one we like to think of is: modelling is the activity of solving problems in groups.
OiCOS Economic Engine enables a division of labour in modelling
- because OiCOS developed compositional economic and business modelling.
- By that management (or modelling as thinking about the organisation)
- can be organised by a division of labour
- and by that synchronised with
- the division of labour in the operations to be managed.
This is analogous to the revolution in the automobile industry called "simultaneous engineering", where cars and the robots for building the cars can be built at the same time.
The Economic Engine as a software stack for digital twins of economic organisations is unique and useful wherever double-entry accounting systems are involved in exchanges of goods and financial assets. This is the case in all sectors of the economy. The traditional double-entry systems interact in so called quadruple-entry accounting systems. These systems arise everywhere in the economies up to national accounting systems as defined as a standard in the "System of National Accounts 2008'" of IMF, OECD, EU Commission, UN, World Bank.
Our money theory provides tools to keep quadruple-entry bookkeeping systems consistent. This is analogous to the balance sheet consistency of double-entry bookings where the same amounts are booked on debit and credit sides of T-accounts. Analogously we maintain quadruple-entry systems consistent when credit, money and currency creations are booked for banks, central banks and the bank of central banks, respectively. This is applicable in the economies for decentralised macro-financial organisations with our DigiTally (tallies are among the oldest human artefacts used for recording debts) as the base line financial instrument of any monetary system. The DigiTally is a modern and our version of the bill of exchange (or German Wechsel, or "I owe you" contract) as a smart (runnable, i.e. algorithmic) contract and has to be structured and composed with more functionalities (like leasing contracts) according to the needs of the area of application. These areas are holdings, large joint projects, energy systems, reinsurer or international networks of transactions such as the trade finance sector of the import and export sector.
On top of the DigiTally custom currencies can be constructed for currency portfolio risk management. Custom currencies can be thought as generalised cost centres. OiCOS quadruple-entry accounting systems are stable by continuously maintaining the appropriate macro consistency conditions. Debt crises are eliminated by design as well as toxic assets and banks which are orphaned debts, booked without obeying to the macro accounting consistency conditions. This is analogously to a double-entry booking of "loans (decreased on debit side of this liabilities account) 400 Euro to bank (decreased on credit side of this asset account) 300 Euro", the balance of this system would not be balanced anymore.
The code for our accounting systems is equipped with a category theoretical denotational semantics which allows to define customised domains specific low code visual programming languages and compilers that prove the correctness of the implementation of the type theoretic specification of the system. This means that we not only supply macro financial operating systems but also simultaneously robots (compilers) which built these systems, needed for their automatised reorganisation.
The platform that we have designed for decentralised energy grids, is applicable where supply and demand interact. In economics platforms are called markets. In the energy sector the supply of organisational structures, such as virtual power plants or energy communities, are demanded for decentralised energy production. Again, analogous organisations can be designed for any applications in the economies. The Economic Engine runs the exchange of informations and business models in real-time.
In short, the Economic Engine is applicable in all sectors of the economy, since macro systems of interacting double-entry accounting systems, are everywhere and always meant to be stable and in need of an engineered approach to consistency conditions, risk management and reorganisation.