Efficiency of Integration

EoS is a concept that comes from centralist, scarcity-based economies.

Instead of EoS, OSE envisions efficiencies in distributed economies. These efficiencies come from:

1. Efficiency of integration - instead of focused point products, or high level of task division, integrated product lines (product ecologies) and higher value per product (company builds several aspects of a product, not a small part). For example, an integrated builder can build the entire house, instead of hiring 3rd parties including 17 different trades, construction managers, surveyors, soil scientists, general contractors, developers, realtors, designers, architects, financiers, and engineers. This naturally allows the integrated operation to capture significantly more of the value of production. The formula is .1*N - where N is the number of third parties, and 0.1 refers to a typical 0.1 of the cost structure.