Do you understand the entire spectrum of economic radiation or only a small part of it?

In this new podcast, Doug Hicks compared advances in how we see things with only our naked eyes and then interpret the universe, and how we are now able to see much more with tools to enhance our vision.

Visible light is electromagnetic radiation that we, as humans, can detect with our naked eyes. Aided by tools, humans can now “see” and measure things that are invisible to the naked eye; from low frequency, low energy radio waves to high frequency, high energy gamma rays.

Financial accounting is the decision maker’s visible light. Through the eye of financial accounting, a decision maker can detect and measure only the economic radiation that happens to fall within financial accounting’s “visible range.” Financial accounting does not detect and measure all of the economic radiation lurking in the universe, only the radiation within its limited range.

Predictive, causality-based operating and economic cost models, like those promoted in the Profitability Analytics Framework, provide visibility along a much wider range of the economic radiation that permeates the universe.

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