Seattle Method

For decades, accounting information systems were not engineered to ensure that data remained consistent by design. In that paradigm, inconsistency is assumed. Errors inevitably enter the system, and organizations respond by building endless processes (a.k.a. pipelines) that allowed humans to manually check, fix, adjust, and reconcile. This mindset treats truth as something assembled after the fact, through labor‑intensive cleanup. It is a paradigm of perpetual remediation . This legacy mindset also produces physical fragmentation (data scattered across systems, files, electronic spreadsheets, ledgers, and platforms) and semantic fragmentation (incompatible meanings, definitions, and structures). Fragmentation has costs associated with it.  For example, once fragmented the traceability and provenance chain breaks. You cannot reliably follow a fact from its origin to its use. You cannot prove what is true; only reconcile what went wrong. Accounting & Audit by Design (A&AD)...

The Accounting & Audit by Design (A&AD) Framework is about freedom from drudgery for accountants, auditors, and analysts. It is about streamlining processes. A&AD is about eliminating the waste of time and energy that goes into transaction chasing. A&AD is about fixing processes that allow mistakes rather than spending time fixing mistakes a process allowed or dealing with the consequences of a mistake escaping from the system undetected. The following sections will help you understand what the Accounting & Audit by Design (A&AD) Framework is and what it enables. Environment What is A&AD? Why A&AD Now? How does A&AD Work? Business Outcome Fifty to seventy five year ago it would have been impossible to contemplate something like A&AD; it just was not feasible. We did the best we could to implement accounting information systems using computers and software that we had at the time.  That gave us the paradigm, the normal science per The Kuhn Cy...

A business model explains how a company makes money. A moat  is a defensive measure and explains why that business model keeps working even when competitors attack it. Without a moat, a business model is fragile. Without a business model, a moat is meaningless. Companies build moats in order to make their success hard to compete with, hard to imitate, and hard to erode over time. A strong moat lets them keep customers, maintain pricing power, and generate durable profits. One type of moat is knowledge . But knowledge only becomes a moat when the knowledge is encoded. Raw expertise is not defensible. Encoded expertise is. Knowledge is encoded when it is turned into metadata, rules, theories, ontologies, taxonomies, schemas, governance frameworks, process automation logic algorithms. When knowledge becomes machine‑readable, enforceable, and extremely hard to replicate you create a moat that artificial intelligence cannot erode. Knowledge can be organized within a knowledge org...

PWC and Anthropic announced their partnering to create what they are referring to as the Office of the CFO; see  Anthropic and PwC Expand Alliance, Driving Impact Across Client Work and the Firm , and my commentary here . PWC and Microsoft announced their partnering to collaborate strategically to transform industries using AI,  PwC and Microsoft announce strategic collaboration to transform industries with AI agents .  EY and Microsoft announce partnership to help clients scale AI,  EY and Microsoft announce global initiative to help clients scale AI enterprisewide value creation and move beyond experimentation . What they have is effectively a platforms to do consulting to large organizations in the financial services, insurance, pharma, healthcare industries and other industries. What I am wondering is if there is an appetite for a similar offering targeted at small and medium size enterprise, but could be used by anyone.  Something that is modular, based on ...

In a blog post, What we are Building ,  LodgeiT Labs explains an accounting substrate which they are building.  In describing that accounting substrate, they use the term "manifold".  A manifold is a mathematical structure.  More specifically, a manifold is an idea related to topology . To understand the notion of manifolds requires working knowledge of calculus and topology. But this is important to accounting, so I am going to try and explain this in simple terms. In topology, a manifold is defined as a topological space that locally resembles Euclidean space. That means if you zoom in on any small region of a manifold, it looks like ordinary flat space, even though the entire shape may be curved or complex globally. Think of topology as the rules of connectivity and manifolds as the spaces that obey those rules while still looking locally flat. What this means in terms of accounting is that while accounting transactions might look like a simple list, you can act...

Every type of artificial intelligence has a set of specific capabilities and a set of specific limitations. Neuro-semantic artificial intelligence with human teaming takes the best capabilities of each type of machine and combines that with the best capabilities of humans. The strengths of each is used to  remedy the weaknesses of each and the sum of what results is better than any of the individual approaches used individually. The complete quadrant. The four agent workflow model.  A multi-agent workflow . Within teams, agents cooperate to improve the overall performance of the group. Teaming is the only way to safely deploy certain systems in complex, high-stakes, high-risk environments where there is low or even zero tolerance for error. And this includes human intelligence, human agents, as part of the team.  Human intelligence is an integrated component, not just a passive user.  Besides, human intelligence and machine intelligence are different.  My work...

NFTs ( non-fungible tokens ) are all the rage these days; but understanding exactly what an NFT is can be challenging.  This article, 7 Things You Should Know about NFTs , is a good place to start learning about NFTs. Understanding NFTs is easier when you understand the characteristics of an NFT.  The following are the characteristics of an NFT: Non-interoperable : NFTs are unique and unlike fungible tokens which are all the same basically and any one is just as good as any other; NFTs are not interchangeable. Indivisible : NFTs cannot be divided into smaller denominations.  Indestructible : NFTs are stored on the blockchain and can never be destroyed.  Verifiable : Because NFTs exist on a blockchain they can be traced back to the original creator . This video, Could Enjin SUPERCHARGE Gaming NFTs?! (at minute 6:50) points out three aspects of determining value of an asset:  Rarity : How scarce is it? Provenance : Where did it come from? Quality/Utility : How go...