Summary Barcode

A Summary Barcode is the Enterprise Barcode covering at least forty percent of a company’s revenue — chosen to represent what main function that company fulfills in the economy.

Every company gets a barcode for each functionally-unique product line it has, but comparing companies requires picking one barcode to stand for the whole firm. That’s the Summary Barcode’s job: tagging a company with a single representative barcode lets classifiers spot shared business risks and shared economic functions across otherwise very different companies. Sometimes one product line already clears 40% on its own. Other times, several product lines have to be aggregated together to reach that threshold — and when fields don’t match across the barcodes being combined, Div notation fills the gap.

Which barcodes to combine isn’t always obvious, and getting it wrong costs more in some fields than others. The book’s own case study: a real estate developer with three equal product lines — commercial development, residential development, and retail leasing — each at exactly 33% of revenue. Any two would clear the 40% threshold, so which two? Commercial and residential share the same Enterprise Locus but differ everywhere else; residential and retail leasing share the same Final Resource Locus but differ in their enterprise activities. The rule that decides it: losing specificity in the Enterprise Locus costs more than losing it in the Final Resource Locus. So commercial and residential combine, forming a Summary Barcode that represents 66% of the company’s revenue — not because it’s the largest possible combination, but because it’s the one that keeps the most functionally important information intact.

See also: Product Lining · How to Read a Locus Barcode

Part of Reading the Enterprise Barcode, course 4 of 7 in the Locus Theory series. For the full term-by-term specification, see the Lexicon.

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