If we consider all the other chaotic factors in economics: Human error, fraud, creative accounting, mischievous behavior, negligence, and general mistakes. One would be forgiven for thinking “what difference will a few tiny rounding errors make?”

Let’s skip back a few years: Running a small record company in the UK was simple enough, you or a team would make a record, give it to the distributor if it made money we got paid, remixes came as a result and a simple up front fee was received.

Moving on to a SME (Small to medium Enterprise) was however extremely chaotic, largely due to financial controls, at first I just worked on a simple spread sheet, but when the company expanded and my time was better placed elsewhere, the administration was put on the hands of a dedicated book keeper and accountant, who introduced me to Pastel accounting.

Later when my company www.capevillas.com started to manage the villas, things became even harder. The bigger the company got the more need for a fool proof financial system. Various accountants and financial managers came and went, each time, professing their skill with Pastel, informing me, the last team had set it up wrong, and all data for the last few years needed to be re input, then later making such a huge mess they had to go.

After 5 years of losses despite being the most successful company in our field, I bit the bullet and gave a “no limits” budget to “BDO Spencer Steward” to install and work the Pastel Accounting Software.

Including the dedicated staff needed, it cost about $150,000 to install and set a program that only cost $200 in the shops. At the end of the process, it did none of the things I wanted it to do, was so complicated it needed $80,000 of dedicated financial staff, but worse it was prone to human error, in particular data capturing and reorganizing. I tested it one day on a booking that had changed payment recipient and sure enough, they had paid both recipients making a loss of $5,000

There was nothing for it, I would not do this size of business without the right software and I needed to program it myself. I downsized the business from 38 staff to 2, so I could work full time on the software designs and complimentary business plans.

Over the 7 years trying to work with Pastel, I considered how I would like the financial software to behave and what I’d like to network it to.

And if we look at the very start of the S-World business plan and a proposal to VIRGIN you can see that a financial module connecting to the CRM (Customer relationship management) was and is still the very heart of the project.
The CRM gifts idea, was the precursor to the facebook gifts idea, a very simple way to show how to make an awful lot of money. The finical software plans were further described for facebook alongside the CRM within the facebook travel section, this time however interlinked with many other functional pieces of software.

No system is perfect, businesses that handle cash, will still be vulnerable to human error or fraud. However the general design is to simply record all information from an enquiry or sale into the CRM, if it’s an on line enquiry it goes in direct. Before moving to the admin phase, the customer needs to sign of on his order.

Once the client has signed of, no human touches it, unless the order is changed. From the CRM it goes straight into the financial model, which is linked to the bank, as soon as the money comes in it is recorded automatically, so no data capturing errors. The money is either paid directly to the supplier or put in a payment cue to pay on the last day of credit, so gathering some interest. The profit, nicely and neatly recorded.

The real trick to making this work for all industries all sub business types and all different sizes of company is customization, or more to the point the lack of it, the lack of customization the end user has to do. This means over 10,000 different variations of the same software, it also mean’s the software most compatible with a business is installed by a representative of the software company, as each individual business it tweaked, the software in general improves and more our of the box solutions are offered.

And now we start to see the scale of the project, you wait till be get to businessbook, where we then network all 100,000,000 different businesses to a central distribution system.

The real key to the success of the software is simple reporting, it needs to be designed so that any average 12 year old, could quite easily advise on the USA Economy. (Not kidding?)

An easy overview and really useful pop ups, as illustrated below

There will be many clever people thinking of ideas, for me in particular we are looking for some double checks.
The simplest would be to double check overall company worth (Assets, land, all bills recovered VS. debts and commitments)

If a CEO had such a report in real time, and the company is happily making profit, The CEO knows his team is doing well, and he has time to concentrate on other matters. If it’s making a loss, then it’s all hands to the pumps until it is well.

On a smaller level, (not including assets), simply checking the company month end profit figures against total company worth increase should give identical stats. But as the stats are calculated in a different way, if there is discrepancy you know something’s wrong.

At this point, support will be called for and a dedicated person will assist you on site.

Note, the software and support (within reason) are free. Microsoft and Apple will make revenue from a small transaction fee (less that 1%)

Yes that’s exactly who we need to make the software, the most trusted brands, in terms of innovation and technical skill in computing and software.

Bill Gates will be extremely enthusiastic about the “Save the World” ideology that he himself inspired, Apple will also see much merit and many opportunities.

I’d like Apple to concentrate on the CRM “Be nicer to everyone” brand improvement, communication in general, sociological tests... The list never stops; it is best described within the facebook travel section.

Microsoft and Apple need not spend money on developers as this will be done in the “Cities of Science” They do however need to make all parts work on both operating systems. We will get to the S-World operating system later.

This was the basic software design, I’d wished to create, to become the financial and communications pillars of S-World & businessbook (TV and Networking)

If small companies were to start up solely using the systems illustrated in facebook travel the mother company would have total control of all sub companies. In travel & Real estate, one could realistically expect to create 100,000 new companies & sole agencies.

According to this statistic that’s more new companies that are in existence in the entire world! Add that to other industries and…… we are looking at a total “Global Trade Network” with every transaction routed through the core financial system, for which we will probably need to write a new software language, easy but pure, fast and of course structured around the non chaotic number sequence.

Another part to the initial design requirements was that it output to tax approved audit, without any accountancy fees largely automatic but with staff on hand if necessary.

When the Greek economic recovery plan was first committed to paper in September, the first statistic everyone was throwing around was $40Billion lost each year in unpaid taxes. It was not much of a leap to connect the dots and have the software automatically calculate tax, and while one is at it, one may as well do it in real time, far better data to analyze, plus instantly generating a lot of extra cash flow.

And this is where the name Sienna.Gov, named after my daughter. The software had become possibly the most essential government system, Tax collection. I’ll be honest when the objective (Network into Government Systems) was first considered in March 2011; it was a little bit of an anti climax to see the first integration would be the highly unglamorous IRS, no matter how useful it is.

Over Christmas and New Year, whilst everyone was having a party, I was working on the USA figures, we will get to the results in “American Butterfly” nearer the end, for now, believe me, they desperately need the system integrated through everything save the weapons systems.

They don’t have to of course, I’d suggest a referendum, but I can imagine some resistance.

One thing is for sure, The Greek government will allow us to completely integrate into theirs, with the 99% approval of their citizens.

So one way or another, Sienna.Gov, will be born, as I said, it’s a job for Microsoft and Apple.

What has this got to do with the mathematics of “Chaos Theory”? not a lot, its inspired by the idea of “Chaos Theory” in that by removing human error from financial and economic systems, we make them less chaotic.

It is when this far less chaotic financial structure is planted within the Non chaotic economic structure highlighted in the last chapter, that you can start to see the basis for a spectacularly well ordered economy, where one can make long term economic predictions possible.

Now we will go back to the pure mathematics and look at the company that we only allowed to make $4Billion the excess profit going to create a new company and what I have called POP1 (Pressure of profit)

Of all the hundreds of examples “influenced by Chaos Theory” many will say, yes it certainly seems to make sense to remove as much chaos from my life and business as possible.

However the following was a direct result of just following the basic math and applying it to the problem, the result of which is between solid and extraordinary.

So, on this basis, I claim “Chaos Theory” as a mathematical science, as it has created tangible results when applied to an economic problem.