Holistic Innovation; Possible Game-Changer?

The global macroeconomic and micro-economic business cycle, lasting over the past 8-10 decades, appears to be drawing towards closure. Especially during the past two decades, there has been a continual convergence between “brick & mortar” vs. “digital” economies. Meanwhile, global currencies, banking and capital markets have undergone major volatility, restructuring and rationalizing resulting from imbalances in sovereign Debt-Deficits-Demand due to monetization of various Collateralized Debt Obligations (CDOs), Credit Default Swaps (CDSs), and Over-The-Counter (OTC) Derivatives. There has also been a constant and dynamic shift between “deflation vs. inflation” and “deleveraging vs. default” leading to definitive impact on stocks, bonds, commodities, precious metals and other asset classes. Thus, as a resultant, the conventional value and supply chain may no longer be feasible nor viable.

During the current transition to the dawning of a “new age” of asset classes, various global stakeholders in Government-Corporate-Finance-Academia continue their attempts to define and draft effective policies and framework (i.e.) monetary policy; fiscal & regulatory policy; macroeconomic policy; structured finance and; micro-economic business strategy and plans.

Accordingly, “holistic innovation” may be a possible game-changer which may likely provide a course of corrective action as well as positive direction leading to unleashing cutting-edge, next-generation technologies, products and/or services. Main emphasis must be on; long-term capital appreciation; building enterprise value (EV) through tangible and substantive assets base; delivering high current income and; minimizing debt and expenses burden which directly impact deficit-based financing.

The key drivers in ensuring “holistic innovation” occurs on a productive and results-oriented basis rather than “boom & bust cycle”, may include but not limited to the following:

• Effective and unbiased monetary policy, fiscal & regulatory policy, macroeconomic policy, structured finance and micro-economic business strategy and plans
• Strategic Alliances & Partnerships between Private Sector-Public Sector-Academia
• Promotion, incubation, support and launching of talented entrepreneurs
• Practical, realistic, focused and targeted methods for “capital formation-capital allocation-capital deployment”
• Ensuring investment safety, security and realistic returns while delivering Return of Capital (RoC) within a definitive exit strategy

In summary, “holistic innovation” may help enable solid rethinking and refocus which is required for “bottom-up” building of balance sheets, P&L’s and cashflow statements through an enhanced value and supply chain.