Multivariate Graphical Display for Corporate Performance Benchmarking
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Solution Overview
Problem
Current methods for benchmarking corporate performance are subjective and lack objective criteria, failing to provide a precise and comprehensive view of a company's financial and non-financial data, especially in the context of corporate governance, environmental, and social responsibility, which are crucial for transparency and decision-making in the business world.
Innovation Solution
A system and method for computing an integrated rating of companies using a formula applied to both financial and non-financial data indicators, accessible through a distributed computer network, with tiered access and interactive user interfaces for exploring and interacting with the data, allowing users to customize their views and receive alerts on changes in ratings.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If subjective benchmarking methods are used to evaluate corporate performance, then ease of operation is improved, but measurement precision deteriorates
Solution Approach 1:
The patent transforms subjective corporate performance evaluation into objective measurement by changing the parameters from qualitative assessments to quantitative indicators across multiple dimensions (financial, environmental, social, governance). The system uses weighted scoring models with specific measurable parameters for each indicator, converting subjective benchmarking into precise objective evaluation.
Solution Approach 2:
The patent replaces the manual, subjective mechanical process of benchmarking with an automated computer-based system that uses algorithms and formulas to calculate integrated ratings. The system automatically processes data from multiple sources, applies weighting factors, and generates objective performance evaluations, substituting human judgment with computational analysis.
2Measurement precision
If comprehensive multivariate data is collected for corporate evaluation, then measurement precision is improved, but device complexity increases
Solution Approach 1:
The patent divides the complex corporate performance evaluation system into segmented components: four main pillars (financial, environmental, social, governance), each with multiple indicators and sub-indicators. This hierarchical segmentation allows comprehensive measurement while managing complexity through modular structure, where each segment can be independently calculated and then integrated.
Solution Approach 2:
The patent creates a universal evaluation framework that can assess diverse companies across different industries using the same multi-dimensional model. The system is designed to handle various data types and sources uniformly, applying consistent methodologies across different corporate contexts, thereby managing complexity through standardized universal processes.
3Reliability
If tiered access control is implemented for rating data, then reliability is improved, but ease of operation deteriorates
Solution Approach 1:
The patent implements local quality control by providing different levels of data access to different user groups based on their needs and authorization. The system tailors the quality and depth of information presented to each user segment (e.g., investors, analysts, company management), with each group receiving appropriately scoped access to financial, environmental, social, and governance data.
Data Source
AI summary
Multivariate graphs specific to a company's performance, alone or in relation to a benchmark, and methods for producing same include defining on a display screen an origin having a first value, extending from the origin at least three axes on the display screen, the axes being generally equidistant from each other and representing a respective variable, plotting on the display screen a value of each variable concerning the company as a point on a respective axis, and using the plotted points to interpolate first segments between the axes on the display screen. Benchmark information, extrinsic to the company, can be obtained, processed into a rating in the same manner as the company data, and superimposed for ready visual comparison of the company's performance to the obtained benchmark. The benchmark information, if shown, is distinguished from the company's performance graph.