In our daily lives we procure not with money, but with our values. We buy cars that bring us ‘joy’, purchase clothes that ‘empower’, acquire services that make us ‘happy’ … and reject offers that do not match our ‘hopes’. Institutional procurement is moving in the same direction – we no longer decide only on price, speed and quality … but factor in sustainability, modern slavery, and social value. The brands we represent can no longer afford to associate with brands that are not aligned to our values; because of the transparency afforded by social media these intangible assets can decimate our tangible assets in a heartbeat.
The decision metric of procurement is not the just the dollar, but how aligned we are to those we procure from and with. When we decide to cut 3% from or budgets to increase shareholder value, the likelihood is that a community suffers, and worst still across multiple layers in the global supply chain others enter into slavery conditions. Because of you, some will end their lives in abject poverty, and others will celebrate life. Your decisions can lead to the ultimate sacrifice – in your hands is the power that someone lives or dies.
Whether the tender is for stationary or a billion dollar bridge, the future of procurement is changing. Governments already recognise that it is the single greatest instrument to achieve national objectives, enacting laws to align their suppliers with their values. It is surely time for procurement professionals to break away from the equivalence to the mundane world of accountants, auditors and actuaries, but to take our place at the top table in driving world change.
The 4th industrial revolution has provided us with a single instrument called Blockchain that can simultaneously measure, transact and delivery both financial and non-financial value transparently and at scale. This digital technology enables us to establish structures for good by making our financial decisions contingent on our institution’s alignment to a set of non-financial values. If we are being brave, we could involve AI to direct our decisions or to even fully automate the process, bypassing unfair or corrupt procurement which is prevalent wherever scale is involved. Furthermore, through tokenisation every single product, process, project, organisation or even person which is part of procurement can be fully aligned to all the stakeholders in our organisation – shareholders, customers, suppliers, government, environment, staff and the communities we serve.
At the end of Q3 2018 the not-for-profit foundation Centre for Citizenship, Enterprise and Governance (CCEG) will have completed the Seratio Ecosystem to MVP (minimum viable product) level ready to start implementation in Q4 trials with significant partners in cities, regions and countries around the world. This has been a 7 year journey, started in May 2011, to create structures for good that allows us to travel through our lives guided by the beliefs we hold dear to our hearts. By establishing a digital currency of intangible value, we can use AI (Artificial Intelligence) Bots on our mobiles to navigate our interactions with organisations, products, projects, processes and even people based on their provenance and how aligned they are to our own values. Retailers will be able to incentivise and target to differing degrees whole communities that match most closely their corporate values. We will be able to exchange our token instruments of non-financial value with assets of financial value.
Now moving to engagement and integration within global markets across public, private, civil society and community sectors, the Seratio EcoSystem will be governed by its participants through a Distributed Autonomous Foundation (DAF) which itself will integrate with other DAO (organisations) structures representing the Non-Governmental Organisations (NGO’s) both small and big. We are an international community of over 120,000 with a vision which are ready to deliver, but the next phase is about market need, scalable adoption, and professional operational delivery to give us a world based on sustainable social impact. Our common goal is to form a world transacting on the optimisation of Total Value where both Financial and Non-Financial Value are of equal importance and driven by our individual and collective Values.
In early 2016 we moved from just the measurement of value to the movement of value, adding a transaction of value capability through blockchain. We now have a CCEG Blockchain UN Lab which conducted UK’s first Initial Coin Offering in October 2017 with UK Financial Conduct Authority (FCA) guidance, an institutional blockchain consultancy and advisory service Rothbadi & Co, a large IP DLT consortium CyberFutures, and a university educational value forum www.EfficiencyExchange.ac.uk.
Justas Structuras Creare (Creating Just Structures) #goodistrending
The system as a whole is 85% complete (green shaded above) at present moment with 100% expected by October 2018. Originally expected to complete by July 2018, the additions of the DAF and Exchanges has extended the timescales a further 2-3 months. Although the securities financial exchange (yellow shaded above) will take further still with Swiss FINMA approval required, the security asset exchange is not an immediate requirement for day one as many others exist which we can use.
Moving Forward with Partners
With the end of the visioning and development cycle, comes a new challenge as we move into pilots and trials of our MVP to test and improve the Seratio system. We have in place already one pilot with a UK brand Mencap which has been delayed now to December 2018 due to their financial constraints, several demo’s and launches in November 2018 in Amsterdam and June 2019 in Copenhagen with Informa Plc (FTSE 100), as well as city launches in Taizhou (August 2018), Yiwu (October 2018), and country launches in Wales (August 2018) and Moldova (November 2018); other partners are now in discussion.
The Seratio Ecosystem is aided by AI to assess the complex analytical data available and to transparently steer consumers becoming their online friend. Similarly for public sector institutions, private sector corporates, civil society NGO’s – and their leaders – to become their values driven guide
As with all the work at CCEG, the Seratio EcoSphere is open source, and part of our contribution towards the United Nation’s 17 Sustainable Development Goals.