INVESTUS 2023 MAGAZINE

SUCCESS IS BUILT BY MIND, NOT MONEY

Jargalsaikhan Dugar

ENHANCING THINKING AND BUSINESS

MANAGEMENT SKILLS

Munkhtsog Altankhuu

INVESTMENT IS THE ART OF STAKEHOLDERS

FOSTERING MUTUAL VALUE AND REAPING

COLLECTIVE BENEFITS

Bat-ireedui Jargalsaikhan

2 INVESTUS SOCRATUS.mn

GREETING

Bat-ireedui Jargalsaikhan , Chairman

of the Board of Socratus Studio LLC,

CEO of Gund Investment LLC

2023

Day by day, the emergence of new

startups presents many profitable investment

opportunities. However, numerous investments

fail, and the rapid growth of startups is

altering the traditional business landscape.

This ongoing change sends daily signals to

investors that they may lose investment returns

and opportunities if they do not adapt.

Today, certain investors are making

their investment decision relying solely on

the current statistic that 1 out of 10 startups

succeed. It looks as if they are betting. We at

Gund Investment focus on investing in startup

businesses, enhancing their proposed

solutions through innovation and knowledge

integration, and shaping system solutions. In

doing so, we aim to reduce both investment and

investor risk, managing the investments using

methodologies grounded in our understanding

of business failure and solutions to mitigate

it.

As we are approaching the year of 2023,

we are pleased to present a summary of the

insights we've gathered, the solutions we've

implemented, and our investments through

the inaugural issue of "INVESTUS," initiated

by Socratus Startup Studio.

As entrepreneurs and investors, may your

decisions be wise. We firmly believe that a

globally valued start-up company will emerge

from Mongolia.

SOCRATUS.mn

INVESTUS

3

CONTENTS

08 SYSTEMS ENGINEERING

UNDERSTANDING THE FUNDAMENTALS OF

SYSTEM MODELING

Jargalsaikhan D.

12 INVESTMENT AND RISK MANAGEMENT

INVESTMENT IS THE ART OF

STAKEHOLDERS FOSTERING MUTUAL VALUE

AND REAPING COLLECTIVE BENEFITS

Bat-Ireedui J.


WHAT IS SYSTEMS ENGINEERING?

TUS Solutions LLC

22 RESEARCH

WORKPLACE FLEXIBILITY: IS YOUR

BUSINESS ADAPTED FOR MODERN

SCHEDULING?


ENHANCING THINKING AND

BUSINESS MANAGEMENT SKILLS

Munkhtsog A.


SUCCESS IS BUILT BY MIND, NOT

MONEY

Jargalsaikhan D.

36 DIGITAL ERA

MONGOLIA'S FIRST MEMBERSHIP IN

THE INTERNATIONAL COUNCIL OF

SYSTEMS ENGINEERING

Byartsengel B.


HOW LIFE INSURANCE SECURES

YOUR FINANCIAL WELL-BEING

Mongolkhuu G.

47 INVESTMENT AND RISK MANAGENEMNT

THE UNCOMMON PATH OF THE

ORDINARY MAN TO SUCCESS

53 EDUCATION

STEAM FOSTERING OUR NEXT

GENERATION WITH COMPETENCES

FOR THE 21ST CENTURY

Khos-Ochir Ts.


INVESTUS

KNOWLEDGE-BACKED INVESTMENT

Issuer

Socratus Studio LLC

Editor

Munkhtsog A., Bilguunzaya M.

Chief Preparer

Nomiundari A.

Designer

Nomiundari A., Khongorzul M.

Photographer

Enhsaikhan S. /Zebra Studio/

Copyright©

2023 Socratus Studio LLC

56 RESEARCH

AN OVERVIEW OF RECENT RESEARCH

AND REPORTS: "REFERENCE MODEL OF

ORGANIZATIONAL-LEVEL-ECOSYSTEM FOR

SUPPORTING THE ACTIVITY OF INNOVATION

DEVELOPMENT"

58 RESEARCH

“REFERENCE MODEL OF MONGOLIAN

EDUCATION SYSTEM AND DEFINING

FUNDAMENTAL PROPERTIES”

RESEARCH PAPER

62 RESEARCH

HOW DO WE BUILD A SMART CITY THAT IS

MORE CLOSELY ALIGNED WITH THE NEEDS OF

THE RESIDENTS?

67 EDUCATION

OUR MISSION IS TO CREATE THE

SHORTEST PATH TO LANGUAGE

LEARNING

Ariuntuya A.

70 RESEARCH

HELPFUL TIPS: 5 WAYS TO GET OVER

THE SUNDAY FEAR

74 INNOVATION

A JOURNEY TO ENRICHING THE WORLD

WITH NOURISHING BONE BROTH

Bat-ochir G.

79 INNOVATION

YANZTAI BRAND BEEF BONE BROTH

82 COOPERATION

MEETING HUMAN NEEDS: CREDIT

SOLUTIONS THAT FIT YOUR LIFE

Erdenenyam J.

86 DIGITAL ERA

EMBRACING DIGITAL SOLUTIONS

FOR EDUCATIONAL GROWTH

Turmunkh O.

SOCRATUS.mn

INVESTUS

7

SYSTEMS ENGINEERING

UNDERSTANDING THE

FUNDAMENTALS OF SYSTEM

MODELING

JARGALSAIKHAN DUGAR, THE FOUNDER OF GUND

INVESTMENT HOLDING, HEAD OF YOUNG RESEARCHER

SUPPORT FOUNDATION

OOur world’s capacity and content are limitless, or

its size limit has not yet been recognized. To understand

something so vast and impactful on human life, it's essential

to identify its parts, distinguishing them from others. Such

understanding begins when human is still in the mother’s

womb and continues throughout the life.


The environment comprises known and unknown

things that come into being, exist, change, and disappear

through perpetual changes. This cycle of formation,

stability, and disappearance applies to everything,

including humans. The necessity of life forces us to

recognize our surroundings and the things that constitute

our environment.

For this purpose, we classify all that we see and

feel into two categories: stable patterns, called "things,"

and changing patterns, called "phenomena." Stability

in a pattern doesn't necessarily mean it's unchangeable;

rather, it's a state of being balanced or repetition through

a feedback loop.

Everything, including humans, is part of an

interconnected and constantly changing environment.

The environment in broader terms is what we call nature

and we establish representation of it in our mind through

conceptual models of things and phenomena. These

models are main elements of the human mind and are

used to produce our thoughts. Creating a conceptual

model is a complex process, which is not yet fully

understood.

The mental models help us recognize

interrelationships and regularities between things and

phenomena. We then develop, use, and apply them

to real-life problems. Conceptual models and mental

models have many similarities and differences in their

formation, components, and connections.

Initially signals are classified and formed into

certain patterns. Creating these patterns in many cases

requires significant time, knowledge, and resources.

Many innovative solutions have been developed for this

purpose with ongoing efforts to reduce the resources

needed to create mental models. The main challenge

is that there are a large number of factors interacting

and affecting our environment causing high degree

complexity. Without dealing with such complexity it is

not possible to develop a reliable mental model and socalled

system approach is the best framework for this.

Systems engineering methods are attracting attention

as a means to achieve these goals.

Everyone begins a journey of discovery,

acknowledging that nature cannot be fully imagined. This

limitation leads to divergent conclusions and decisions.

However, systemized mental operations still can enable

us to implement specific goals using fundamental

resources such as time, capital, and knowledge.

Fundamental resources - time, capital, and knowledge necessary

for the realization of specific goals /“Reference model

of Organizational-level-ecosystem for supporting the activity of

innovation development ” Research paper, 2020/

SOCRATUS.mn

INVESTUS

9

We employ various methods to construct mental models based on properties observed in

things and phenomena. Most of these methods rely on the algorithm of abstract thinking,

involving the identification of patterns through observation or experimentation, followed by

analysis and the determination of relationships between them.

Our daily life experience suggests that humans

create mental models by processing signals

received from various sources.

The process of forming a system involves

elements, a concept common in systems science,

indicating that objects and phenomena inherently hold

noteworthy concepts. In the formation of a system, the

following basic types of systems are recognized:

1. People-interaction made social systems.

2. Man-made physical systems

3. Natural systems

System elements are often defined in various

forms. The following are common axioms defining the

nature of systems:

1. Interactions between elements make a system.

2. Interactions happen due to certain natural laws

3. Interactions interact between themselves causing a

stable state of the system

4. Any interaction arises at specific moments and lasts

over a certain time period and discontinues.

5. System ceases to exist or changes its properties as the

balance between interactions is lost or changed.

Reciprocity between most things and phenomena,

as well as awareness of service and interdependence, is

significant but requires time and resources. The logical

reasons behind some correlations are evident in everyday

life and are used in practical situations.

The above-mentioned axioms forming the

system's property can be considered main properties

applicable to defining any phenomenon or thing. The

commonality of these features can be easily confirmed by

observing our environment more carefully. Let's refer to

these axioms as the basic axioms of the system.

A select number of axioms are used to create a

mental model of a thing or phenomenon's nature. Such an

abstract mental model, created by logically interrelating a

group of axioms, is referred to as a formal system.

By logically and hierarchically interrelating axioms,

human can develop a theoretical basis explaining

relationships between certain changes or phenomenons.

In fact this method is used in everyday life in order to

make various conclusions or hypotheses.

The system's elements interact and as a result

generates direct or indirect symptoms. Some symptoms

can be sensed by humans, while others require special

sensing tools and devices. In many cases people use

those symptoms for developing mental models and

unfortunately such a model leads to misunderstanding

and misinterpretation. So interrelation between elements

should be taken as a basis for developing mental models

of things and phenomenons. These mental models can

serve a solid logical foundation for understanding and

solving problems.

Innovation- The idea of creating a comparative advantage for

value creation through generating and systemizing knowledge.

/"Reference model of National ecosystem for supporting the

activity of innovation development ” Research paper, 2022/

System- A combination of interconnected elements that

composes predominant properties consistently over a certain

period of time.


SOCRATUS.mn

INVESTUS

11

INTERVIEW

INVESTMENT IS THE ART OF

STAKEHOLDERS FOSTERING

MUTUAL VALUE AND REAPING

COLLECTIVE BENEFITS

INVESTMENT AND RISK MANAGEMENT

As an investment company, can you share your principles

when investing?

B

BAT-IREEDUI JARGALSAIKHAN, CHAIRMAN OF THE BOARD

OF SOCRATUS STUDIO LLC, CEO OF GUND INVESTMENT LLC

Before delving into principles, we should reflect on some

hard-learned lessons. In 1992, our founder, along with friends,

embarked on a trading business that later expanded into a group

company with diverse interests such as mining, long-term insurance,

investment banking, venture capital, and construction materials.

However, by 2015, various investments began to fail, sparking

metaphorical "fires" that required extensive efforts to extinguish.

Various strategies were employed, including external consulting

services, but no suitable solutions were found.


SOCRATUS.mn

INVESTUS

13

We finally recognized the need to revisit the original

goals and principles that united the founding members,

revealing interesting insights. It was evident that the original

team of 4-5 people had different aspirations and methods

that were no longer compatible. This led to the formation of

Gund Investment in 2016.

Though the property was divided when our

group split, the underlying issues remained unchanged,

highlighting the need to alter our management approach. We

now focus on investing in businesses that foster innovation

and aim for sustainable growth and development, based on

the lessons learned.

elements or stakeholders.

It has been more than 30 years since the establishment

of the private business sector in our society, but there

are businesses worldwide that have been operating

for hundreds of years. What's the secret to their longterm

success?

Indeed, the key is adaptability. Through our NGO

“Young Researcher Support Fund” and various research,

we've analyzed systems like the Constitution of Mongolia,

Education system, Pension system, Innovation system,

Startup business ecosystem, and others, to improve our

social system. Systems engineering allows for adaptability

and constant self-diagnosis, leading to our goal of creating a

centuries-old company.

Of course, you meet with business people and

exchange ideas. How are the attitudes of our

entrepreneurs changing?

What does it take today to avoid making the same

mistakes as before? What are the model solutions that

create businesses that can adapt to environmental

changes and produce healthy and sustainable results?

Every model solution has its own merits, but in

Mongolia, markets are rarely segmented according to a

specific model, and information is scarce. Businesses often

outsource programs and solutions, but most fail. Therefore,

assembling the appropriate system to realize their goals is

essential.

What are the main solutions and models that bring

success to your invested businesses today?

We've found success in the system engineering

method, and this realization led to the establishment

of TUS Solutions. Today, we create value for other

companies through system engineering, registering over

50 intellectual property solutions and digitizing them for

service provision. This is one of our strategic projects as

we prepare to enter the international market.

You say systems engineering is the key to success;

what exactly do you mean by that?

Think of the human body. A healthy person's organ

systems are coordinated, functioning together seamlessly.

Similarly, an organization is a system made up of subsystems

such as Goal, Duty, Measurement, Innovation, and Data

Flow Management. System engineering, in essence, is the

rationalization of these systems, coordinating complex

Most big businesses in our country today are

family-owned. Young people are now taking on the

responsibility of continuing businesses started by their

parents, entering the sector in droves. Many are finding

success, and there is a growing movement towards creating

socially responsible and long-term sustainable businesses.

The focus is shifting from short-term profits to concepts,

co-creation systems, strict duties, and responsibilities.

Our generation is embracing the idea of open companies,

with shares of publicly traded companies preferred by

long-term investors. We too are preparing to transition

our companies into open companies, Understanding

that stability and long-term goals are more critical than

ownership.

In simpler terms, our approach involves mutually

valuing all stakeholders, with the ultimate goal of

establishing a business that generates value.

I understood one thing from your speech. Business

is not a weapon for profit; it's a system that creates

mutual value. Is making this system the primary duty

of an entrepreneur?

That's correct. As the renowned economist

Professor Edward Deming said, "96% of the failures

of any organization are the failures of the organization

or system, and only 4% are the failures of the people

working there." An illustrative example occurred recently

when a system failure at a Japanese telecommunications

company led to customer damage. The executive director

took responsibility, acknowledging the need to build a

company that wouldn't make such mistakes. This example

underscores that punishing an individual does not prevent

Business- Coordinated and aligned interaction by a group of

people for the purpose of creating values in a mutually beneficial

manner.


future mistakes. In our society, issues like corruption

and theft are symptomatic of flaws in our social system.

Addressing these flaws is essential to eliminating these

problems.

Let's talk about your personal career and future goals.

Where did you start your career? What projects are

being initiated in the business?

I began my career as an investment analyst at the

"National Venture Capital" investment fund founded by

our holding company. Early attempts at forming start-up

companies with friends were often ill-considered and led to

failure. While working at the fund, I collaborated on many

projects and learned from both failures and successes. In

2018, Socratus Studio LLC was founded to grow start-up

companies, learning from past mistakes and employing

system engineering methods. Socratus Studio has since

invested in about 20 start-up companies, successfully

bringing businesses to market.

Observing the emergence of successful businesses

from companies participating in the Socratus Studio’s

incubation program, it becomes evident that the knowledge

and solutions we've developed can serve as optimal

remedies to curtail startup failures and mitigate investor

risks. Continuous refinement of our solutions is an ongoing

endeavor. We foster an environment where employees

contribute to and benefit from solutions. The company

can share ownership of these solutions by safeguarding

them with intellectual property measures. Furthermore, the

company can incentivize employees by compensating them

for initiating and implementing these solutions.

Importantly, my personal objectives align

harmoniously with the company's overarching goals.

Through the Socratus program, the prime objective is

to collaboratively foster valuable businesses that garner

international recognition.

As the director of the holding, what activities are you

doing in the field of forming and maintaining human

resources?

Our ultimate goal is "creating value together for

customers, employees, and shareholders." We are working

to initiate and implement programs such as employee

housing, share ownership, incentive programs, learning and

development opportunities, and family-oriented programs.

For instance, some of our oldest and most stable employees

at National Life Insurance Company recently became

shareholders. These initiatives are still in preparation

but align with our principle of benefiting stakeholders in

relation to fundamental human needs as defined by scientist

Max Neef.

Thank you for an interesting and lively

conversation.

Business Model: Simplified or abstract representation of an

activity for creating value for all stakeholders in mutually beneficial

manner

SOCRATUS.mn

INVESTUS

15


SOCRATUS.mn

INVESTUS

17

SYSTEMS ENGINEERING

WHAT IS SYSTEMS

ENGINEERING?

BAYARTSENGEL BATSAIKHAN, CEO, "TUS

SOLUTIONS" LLC

S

Systems engineering is an interdisciplinary field

of engineering that emphasizes the design, integration, and

organization of complex systems. It draws upon principles of

systems thinking and the creation of engineered systems to

achieve specific goals and objectives through synergistic patterns.

Unlike manufacturing, which emphasizes efficiency in repetitive

tasks, systems engineering is a cognitive process. It focuses on

identifying and solving problems by developing optimal solutions.

Revolution

The concept of systems engineering first emerged in the

1940s at Bell-Telephone Laboratories, though research had begun

as early as 1900. During World War II, it was applied to major

engineering projects. In 1950, G.W. Gilman from Bell Laboratories

introduced a formal curriculum in systems engineering at MIT.

In 1957, University of Michigan professors Good and Machol

published work on applying systems thinking in design.

By 1966, the U.S. Department of Defense began

formalizing guidelines for systems engineering. In 1990, the


National Council on System Engineering (NCOSE)

was founded to unify experts in the field. In 1995, the

International Council on System Engineering (INCOSE)

was established as systems engineering's scope

expanded. Unlike manufacturing, which emphasizes

efficiency in repetitive tasks, systems engineering is a

cognitive process. It focuses on identifying and solving

problems by developing optimal solutions.

Future Development Trends

Systems engineering coordinates and organizes

complex systems, often termed Complex systems. Twenty

years ago, these might have included computers, missiles,

aircraft, and weapons. Today, thanks to advancements

in science and technology, the complexity has shifted

towards social systems, involving human factors that are

difficult to quantify.

This shift has led to a strong emphasis on

solving problems within complex social systems using

systems engineering. For example, at the 2019 INCOSE

International Conference, NASA astronaut Captain

Winston Scott emphasized the challenge of designing

social systems for long-term living on Mars. INCOSE has

subsequently established working groups to tackle social

system problems.

As a direct outcome of these research endeavors,

significant efforts are underway to introduce and embrace

the Social System Engineering solutions devised by TUS

Solution Company to a global community of system

engineers. An exemplary achievement resulting from

these initiatives is the establishment of the Smart City

Standard. This standard, jointly created by INCOSE-TUS,

was officially released in December 2022, standing as a

remarkable manifestation of the model's effectiveness.

Social System- A social system is an interrelated activity taken by

a group of people that share common goals over a certain period of

time.

"Mongolian" Model of Social System

Engineering

TUSSolution Company has developed over 200

social system engineering solutions and models. These

are internationally recognized and include five axioms,

such as:

1. A system survives if stakeholders have a common

goal.

2. Fulfilling duties realizes a common goal.

3. Collecting, processing, and disseminating quality

data helps meet common goals.

4. Measuring performance and results ensures goal

realization.

5. Continuously improving goal implementation

activities leads to long-term stability.

TUS Solution Company utilizes this model

to enhance its organizational activities, aligning them

with the pursuit of its goals. To date, the company has

successfully implemented this model across more than

50 organizations. Collaboratively partnering with the

NGO Foundation for Young Researchers, TUS Solution

Company has undertaken a series of research projects

aimed at resolving societal challenges through this model.

Noteworthy projects include "Illustrating the Concept of

the Constitution with a System Model," "Identifying the

Characteristics of Mongolia's Unified Education System

and Describing it with a System Model," and "Determining

the Model of the National System that Supports

Innovation." Impressively, over 20 comprehensive studies

have been concluded.

SOCRATUS.mn

INVESTUS

19


SOCRATUS.mn

INVESTUS

21

RESEARCH

WORKPLACE FLEXIBILITY: IS YOUR

BUSINESS ADAPTED FOR MODERN

WORKPLACE SCHEDULING?

TUSS.IO/BLOG

Flexible scheduling may appeal to employees, but if

Fthe risks are not considered, it can harm labor relations.


Flexible Workspace Schedule…

Increasing employee satisfaction through changes

in working days, hours, and locations is a growing trend.

Employers are implementing solutions such as:

• Arriving anytime between 7-10 am and working a set

schedule.

• Arriving at a desired time on a given day and working

to norms.

• Arriving at different times in different months, agreed

upon in advance with the employer.

Companies like MCS Group, Mobicom

Corporation, and TUS Solutions LLC have implemented

these solutions.

Why Do Organizations Need Flexible Hours?

1. Reduces Tardiness and Absences: In the first month

of TUS Solutions LLC's flexible time, tardiness

decreased 13.5 times, and leaves decreased 1.15

times.

2. Encourages Family Time: 81% of employees feel

more connected to family with flexible schedules.

3. Improves Psychological Health: Flexible schedules

allow for activities like morning yoga, enhancing

mood.

4. Attracts Employees: Job postings with flexible hours

increase resume submissions by 31%.

5. Increases Organizational Appreciation: Employees

often share their positive scheduling experiences with

others.

Consider the Disadvantages

1. Limits Learning for New Employees: With varied

arrival and departure times, new employees have less

time to learn from others.

2. Extends Executive Hours: Flexible scheduling

demands better time management skills from

leadership.

3. Potential Misalignment with Customer Needs: If

customer service is unavailable during specific hours,

competitors may gain an advantage.

4. Reduces Interdependence: Coordination between

staff may decrease, leading to delays in information

sharing.

5. Productivity Claims Need Scrutiny: Studies showing a

75% increase in productivity depend on organizational

culture, ethics, and digital transformation.

Tips for Implementing Flexible Scheduling

• Agree on Rules with Staff: Coordinate hours to meet

customer needs and review roles for interdependence.

• Ensure Equal Treatment: Avoid misunderstandings by

finding middle-ground solutions for all departments

and roles.

• Try Before You Implement: Define metrics for

measuring flextime and test for a few months before

formal implementation.

• Ensure Accountability: If you want to leverage

advantages, consider a digital transition with the

TUSS D+ platform, which can integrate with flexible

time solutions.

Flexible schedules can enhance the workplace,

but if risks are not addressed, they may damage

labor relations.

SOCRATUS.mn

INVESTUS

23


SOCRATUS.mn

INVESTUS

25

INTERVIEW

ENHANCING THINKING AND

BUSINESS MANAGEMENT SKILLS


Why was it considered necessary to incubate the

start-up companies?

I

MUNKHTSOG ALTANKHUU, CEO, SOCRATUS STARTUP

STUDIO LLC

In recent years, a new type of business called start-up

companies has emerged, and these companies are circulating billions

of dollars in assets. Unfortunately, statistics show that only one in

ten of these businesses survive, nine fail, and tens of millions of

dollars in investment fail. Will investors and entrepreneurs continue

to take a chance on funding this new venture called startups? Here, I

mean investment, not only money, but also the time and knowledge

resources of the founders and partners who initiated the business.

There is a lot of research on why these startups fail. According to the

findings of the study, the main reasons are: "Not forming a team, not

being a team, not finding the time to release products and services,

and releasing products and services that are not in demand..." These

so-called causes are causes that are known only at the thought level

of the knowledge creation stage.


SOCRATUS.mn

INVESTUS

27

Startup: an interrelated activity aimed at building a business model that can

provide inclusive and advantageous values for stakeholders and transform it into

a sustainable system by developing innovative ideas.

Then, if we study the reasons for the failure of

the startup company identified by that numerous studies

at the level of properties and symptoms, we have come

to know that it is the failure of the founder's and team

members' thinking, the disorganization of the operation

of the startup company, and the malfunction of the

operation. Based on the conclusion that the percentage of

failure can be reduced and the risk of investment can be

reduced if the solution to the root causes of these failures

is implemented in the company, the incubation program

has been developed.

Is your incubation program a new solution developed

by your team?

Yes, we built it based on our knowledge,

experience, systems engineering models and

methodologies. In simple words, the company's goals

are realized when a large number of tasks are carried

out in the company, and they become a single operation.

What happens if we do these activities in a disjointed and

disorganized way, we will run out of resources. No one

will join or invest in a founder who has such disorganized

and, as we say, disorganized activities. The main goal of

the program is to transform the company's operation to

well-functioning operations first. In short, the Socratus

incubation program is aimed at reducing investment

risk by organizing the thinking of young entrepreneurs

and training them in systematic business management

methods. Investment is not only about money, but also

about reducing the risk of a person who is going to work

in your team and invest his time and knowledge.

What are the main challenges facing our

entrepreneurs, not just startups?

Our entrepreneurs and start-up founders generally

feel that there is a lack of investment and money. Why

can't I get investment or money? Why are investors afraid

to invest in me? It is important to ask yourself the question

and find the answer. What investors commonly fear?


They are afraid that you can anticipate future obstacles,

difficulties, and problems, and are proposing solutions to

overcome these future obstacles. are going to manage your

business by meeting the legal entity, are going to manage

it like a small family owned business, and can form a team

with the knowledge and ability to realize my goals. It can

be concluded that the main problem is not money.

Can't do the sales and marketing to sell the product?

Here I highlight the findings of the studies. Bill

Gross, the founder of the incubator Idealab, studied the

success factors of successful startups. 42% of successful

startups launched their products and services at the right

time, 32% managed to form the right team, 28% had the

right business idea, 24% had the right business model,

and 14% were able to get the right funding. Looking

at the external research that mentioned the reasons for

failure, the leading reasons are products and services that

are not in demand, running out of money, and not being

able to form a team. The fact that undemanding goods

are produced at an inopportune time is due to insufficient

research and analysis when creating a solution. Failure to

execute marketing is directly related to failure to build a

team. Recently, a young man who holds a management

position in a large Mongolian company visited one of our

invested start-up companies. I love the work you do, your

goals, and the impact you have on the community. For this

purpose, I will give up my high salary and join your team.

I want to create value. So, to form a team?

How do startups get into your program and what are

the criteria?

Every quarter we announce a PITCH DAY. The

entrepreneur will send information about his project. We

conduct a 3-stage selection process to assess whether

a startup meets the criteria. We understand that "an

interrelated activity aimed at building a business model

that can provide inclusive and advantageous values for

stakeholders and transform it into a sustainable system by

developing innovative ideas" It can be understood that the

products and services that the startup is trying to create

can be evaluated based on whether there is innovation,

whether it is accessible to users or whether there is

an opportunity to expand, whether there is a relative

advantage in creating value, or whether a team has been

formed that aims to develop a sustainable working system.

How about your incubation program?

When we invest and cooperate, we own shares

in the business. No loans are granted. In the sense

of investing capital, it should be understood that the

risk of the business is being shared. Currently, we are

implementing 2 programs. The first is the Socratus

bizStep-Up program. The concept is that we will invest

our money, knowledge and time to create value together

in the start-up business you have created. Next up is the

Socratus iStep-Up program. The concept is that we are

trying to do business, we have prepared a certain amount

of resources, you just bring your business idea and join

us and use those resources to create value. It's a program

like no other for anyone with an idea to start their own

business.

Developing- An activity aimed at creating irreversible and positive

changes in the social system.

SOCRATUS.mn

INVESTUS

29

What advantages will be created by participating in

your program?

Our program is implemented for 2 years. In the

first year of the program, start-ups work under the goal

of "increasing the value of the company by installing

and strengthening the basic strategic system, improving

products and services, and developing the knowledge

and skills of employees." "Increases the value of the

company by In the implementation of these goals, it works

according to the algorithm of creating a business system.

We can make one promise to startups. By participating in

the program, the business will be able to plan itself, be

able to implement the plan or distribute it to necessary

tasks, be able to measure its duties, be able to measure

its results, be able to monitor, and most importantly, be

able to diagnose itself. Diagnosis is the biggest immunity

of the system. Of course, every business plans, measures,

evaluates, and evaluates. Yes, but our advantage lies in

creating solutions that tie it all together with a solid logic.

When there is a problem, our people argue

endlessly about me and you. Perhaps this happens at your

work. There are no such arguments in the system solution,

they go looking for the cause of the problem, they ask if

the solution is missing in the system, and if the solution is

missing in the system, they assemble the solution so that

such a failure does not happen again. A solution has been

created that quantifies all metrics. Whether it is American,

Indian, or African, the language commonly used by

mankind is a number language that can be understood in

one sense. Therefore, there is no place to argue about the

results expressed in numbers.

Can it be considered a business system by

implementing these?

Yes. You can check below whether your

organization is a system or not. Just make sure your

business can function without you. If it works without

you, it can be understood that the system is being installed.

When a system is created, five basic subsystems should

be formed. System of duties or consisting of duties that

must be fulfilled, System of goals or concept that meets

the typology of unified goals, System of indicators or

measuring the fulfillment of duties and results with a

single meaning, Revolving communication system or

analysis of the results, self-improvement, normalization

to ensure its activities, the information flow system or

the information within the organization is accessible and

quickly distributed, and the information is expressed as a

real fact that can be proven. After assembling the systems,

as an investor, you have a data panel to evaluate the

business you have invested in.

In the bizStep-Up program, we have a policy

of not owning a controlling stake in a startup. Rates are

negotiated based on the value we can create for the startup.

In the case of the iStep-Up program, the percentage

increases based on the value an entrepreneur brings to

their co-startup. We don't consider the money we invest in

a startup to be the big value we put into that business.

There are many options for raising funds for

business, but one of them is investment. There are stages

in attracting investment for a startup. Angel, seed, series

A, B, C round and so on. We make angel and seed level

investments and are responsible for connecting with the

next level of investment and helping them build. Series A,

B and C investments are made by professional investors

and investment funds. Not an easy task. There is one

mistake that we see among startups and entrepreneurs who

approach us. It does not distinguish between the stages of

investments. I have such an idea, I have come up with

such a model and solution, and then I will invest hundreds

of millions of MNT or billions of MNT. Those hundreds

of millions and billions are made by the aforementioned

investment funds and professional friends. They don't

invest in raw businesses. Co-creating the path to them is

Socratus' main goal. First, let's both become a business

system, then we will go to comrades.

How many companies have you incubated in the

past? What about the achievements of the graduates

of the program?

More than 400 start-up companies entered the

selection process and invested in 19 of them. Some of the

startups that have graduated from our program include

STS Foods LLC, a producer of Yanztai brand bone broth

in the food industry, Melearn, an e-learning platform, and

chatbot.mn, which aims to create an intelligent business

assistant based on artificial intelligence.

On one side of your organization is a startup

company and on the other side are investors. As

a middleman, are you a guarantee on the investor

side and a risk on the player side?

It can be understood that we are preparing

businesses that have reduced risk to a certain extent

and have matured into companies. As investors, you

can partner with us by investing in businesses that have

graduated from our program, becoming a strategic

investor, or co-investing in startups that have participated

in the program.

Thank you for an interesting conversation.

Many of the entrepreneurs I have met have said

that investors are interested in owning a controlling

portfolio of their business when they make an

offer to attract investment. What percentage of the

startups in your program do you own?


SOCRATUS.mn

INVESTUS

31

SYSTEMS ENGINEERING

SUCCESS IS BUILT BY MIND,

NOT MONEY

JARGALSAIKHAN DUGAR, THE FOUNDER OF GUND INVESTMENT

HOLDING, HEAD OF YOUNG RESEARCHER SUPPORT FOUNDATION

Everyone sets various goals, both big and small, and

strives tirelessly to realize them by mobilizing their resources

and opportunities. A goal is a result that a person plans to

achieve through activities which satisfies a specific need of

Ethe person.


A single achievement can't sustain you indefinitely or fulfill lifelong necessities

Various needs often follow one another in

succession. If unmet, these needs can negatively affect a

person's health and life. Consequently, whether willingly

or not, people continually set new goals and engage in

activities to achieve them. The most challenging part of

realizing a goal is choosing and creating the optimal path

to success. However, this is the only way a person can

satisfy their vital needs. There are no alternatives.

Many believe that money plays a crucial role in realizing

goals of any scale.

Different people have their own ideas and models

for achieving success, adhering to them whenever they

need to achieve a particular goal. These paths can lead

to either success or failure, reinforcing that there are

various ways to reach both outcomes. From large-scale

international and societal objectives to simple family

business activities, achieving goals requires different

resources such as knowledge, skills, and equipment.

Goal-directed activity is a human endeavor aimed

at creating targeted change. To succeed, it is essential that

the person implementing the goal thoroughly understands

the concept of activity. Human activities should not be

confused with actions performed by various equipment

and tools. These actions must be planned and organized in

advance.

Life has proven that it is possible to create the

intended outcome through complete implementation.

While some people successfully achieve their goals this

way, failure is also common. The main reason for failure

is often poor research and planning.

Human activity consists of both mental and physical

actions.

The tendency to view research and planning

as mere calculation and analysis, rather than thinking

activities, is widespread both in Mongolia and

internationally. This is a fundamental reason for the low

quality of research and planning execution.

The most crucial part of achieving any goal is the

mental activity performed by those who will achieve it,

known as thinking. The process of thinking is complex

and follows specific patterns. Thinking requires orderly,

disciplined, and goal-oriented execution, and mastering

this skill demands precision in operations like data

collection, classification, measurement, and comparison.

Any conclusion or solution that fails these steps will be of

poor quality and lead to failure.

Thoughts, being intangible, are rarely subject to

direct judgment or correction. Systematic and thorough

thinking creates mental models, such as concepts, ideas,

conclusions, and solutions. These models will be orderly

and logically consistent when thinking is performed

correctly.

Investment activity involves the coordination of various

natural and social factors. Therefore, stakeholders'

thinking style and organization are vital skills. Preparing

for successful investment activity should begin with

organizing one's thinking and learning to control emotions.

Systemized thinking is essential not only for

future planning but also for analyzing the past and

reflecting on mistakes. Learning from mistakes is a crucial

step in planning and implementing the future. Without

systematic thinking, valuable lessons from mistakes

cannot be learned.

The human environment creates thoughts and

ideas in the mind. These conceptual models are formed

by performing organized mental operations. Perceptual

perception consists of patterns formed by data obtained

through observation, classified as internal and external. A

person who hasn't systematic thinking cannot recognize

the inner nature of things, leading to significant problems

in purposeful activities

The deeper and more multifaceted a concept is, the

more reasonable and high-quality the ideas created from

it will be. By recognizing the components that make up

things, imaginary models of concepts are formed in the

mind, allowing the person to relate and harmonize those

models.

SOCRATUS.mn

INVESTUS

33


SOCRATUS.mn

INVESTUS

35

INTERVIEW

MONGOLIA'S FIRST MEMBER OF

THE INTERNATIONAL COUNCIL OF

SYSTEMS ENGINEERING

DIGITAL ERA

First of all, please give us a brief history of

your organization?

BAYARTSENGEL BATSAIKHAN, CEO, "TUS SOLUTIONS" LLC

FFounded in 2016, our company started by providing system

engineering services. In 2020, we expanded our reach by developing

and introducing the "TUS D+" task management platform. TUS

Solutions LLC vision can be clearly seen from its name, we are

Mongolia's sole provider of services for systematizing and digitizing

organizational systems through system engineering methods. With over

30 skilled professionals from various fields, we aim to become a leader

in developing and supporting value-creating business systems.

In collaboration with the "Young Researcher Supporting

Foundation” NGO we did more than 20 research projects since 2018,

that focus on tackling societal problems through system engineering

methods.


SOCRATUS.mn

INVESTUS

37

In addition to internal cooperation, what other

capabilities have you developed to enhance your

credibility in foreign markets and international

partners?

To showcase our activities and exchange

experiences with foreign experts, we became the first

INCOSE (International Council on Systems Engineering)

member company from Mongolia in 2019. Our joint

effort with INCOSE “The reference model of Smart city”

is going to be officially published by INCOSE as a joint

technical product.

Can you share your work experience and history as an

organization manager?

Gund Investment Group, the parent company of

TUS Solutions LLC was formerly MIH group (Mongolian

Investment Holding group) in 2014. During that time

MIH group faced numerous problems/challenges and the

activities of the group began to stagnate. D. Jargalsaikhan

MIH Group’s president and the founder of TUS Solution

started looking for a solution to tackle these problems and

he discovered a book called "System Thinking". At that

time I was a new hire at MIH group, and had a chance to

work with Jargal to realize the principles in the “System

thinking book” into practical use cases of our group

company.

By 2016, we saw the potential of these system

engineering solutions to create value for other

organizations, and established the TUS Solutions LLC.

What common problems have startups faced over the

years, considering your services include investing

in startups, incubating them, and applying systems

engineering methods?

While the founders of startups have great visions,

they usually fail to realize those visions due to lack of

organizational systems that support that idea. In simple

terms, it’s just like building a house without proper planning

and designing.

We help translate founders' ideas into proper

business organizations by providing necessary system based

management tools to build the organizational system and also

by providing the TUS D+ platform to digitize organizational

operations without a need to code.

Can your services be understood as transforming the

director's dreams into a systematic creation?

Yes. Our process involves two primary parts:

The first part is to implement intellectual solutions that

make up the organizational system, including rules and

regulations, integrating them into policy documents, and

ensuring coherent workflow management.

Second part is to digitize the organizational

activities “Tus D+” platform can be used to digitalize

and systemize any process within the organization. From

simple tasks such as sending a letter to a much complex

tasks like implementing a project can be digitalized using

our platform.


How many companies have found success using your

model solutions, and how long does it take to feel

successful and satisfied?

Approximately 70-80 companies have been

diagnosed and implemented our system. For those

adopting such a holistic approach, the focus is on longterm

rather than short-term results. Rather than a mere

increase in sales revenue, total value created for its

stakeholders grows substantially over the years. The

company itself will transform into a continuously learning

and evolving system.

In short-terms the system will begin to function

propely, and individual responsibilities, achievements,

and failures will become measurable. By using data

generated by these operations the company will further

adapt itself and Within one to two years, cost productivity,

capital productivity, and labor productivity will see an

increase.

cover all stages of the thought process without limiting

Mongolians' open-minded advantages.

How many competitors are there in your field?

Currently, no other company in Mongolia operates

explicitly to provide System Engineering services.

Although several organizations offer management

consulting, process engineering, ISO standard

implementations, and software development, our holistic

approach to organizational problems sets us apart. We

provide comprehensive solutions that consider the

interrelations between the stakeholders and elements of

the organization.

How can companies contact you? Are there criteria

for partner organizations?

There are no criteria for organizations that are

interested in using our system engineering solutions to

overcome challenges faced by their company, other than

their willingnes to implement such holistic solutions.

Through our digital platform at www.tuss.io,

organizations can digitally design and build their business

systems themselves, even without the need to understand

the exact principles of the system thinking. By using this

platform, they can implement the fundamental system

thinking principles into their activities in more accessible

ways.

What should be done to reduce company failures?

What effort is required from the customers who

receive your products and services?

Customers must perceive our products and

services as practical "tools," not "magical solutions." Their

effectiveness depends on proper utilization. By making

actions more organized, swift, and efficient, our tools can

accelerate the realization of well-defined goals. Clients must

also recognize their role as stakeholders within the system,

as we jointly develop organizational systems, rather than

merely handling the problems. Without this recognition,

development cannot occur.

I gather from our conversation that teamwork is

essential, which may be at odds with the Mongolian

tendency to solve problems independently. Can you

comment on this?

Yes, our approach includes regulating and guiding

the open-minded Mongolian spirit. We employ the “Matrix

of Basic Human Needs” defined by Arthur Manfred Max

Neff to classify and define human needs systematically.

This ensures stakeholders' needs align with system goals

and incentives, fostering effective teamwork. Moreover,

we emphasize clear thinking, offering solutions that

Social System Engineering- Practice for building a social system

that is capable of realizing its goal.

SOCRATUS.mn

INVESTUS

39


SOCRATUS.mn

INVESTUS

41

INTERVIEW

HOW LIFE INSURANCE SECURES

YOUR FINANCIAL WELL-BEING


Let's begin with the history of the Mongolian insurance

organization and your organization.

I

MONGOLKHUU GALAARAI, CEO, "NATIONAL LIFE

INSURANCE" LLC

In 1934, Mongolia founded the "Mongolian Insurance"

company, laying the foundation for insurance in the country. Since the

mid-1990s, private insurance companies have emerged, enhancing

service quality and availability, marking a new era in what can still

be considered a young industry.

Our organization was established in 2007 and received a

special license to offer "Life insurance" or long-term insurance in

2008.


SOCRATUS.mn

INVESTUS

43

Why is there a difference between life insurance and

general insurance?

While conventional insurance covers property

and liability insurance and related financial risks, life

insurance focuses on matters related to human life, health,

savings, and retirement savings. In essence, life insurance

insures people's livelihood and lost opportunities, setting

it apart from other insurance products.

Could you highlight the products and services of your

organization?

Since our establishment, we have introduced

various products, including life insurance, personal health

insurance, savings insurance, pension insurance, and

critical illness risk insurance for conditions such as cancer

and cardiovascular diseases.

How is the value of life insurance determined?

The value of life insurance is directly linked to the

insured's income, calculated by multiplying their monthly

income by 36. This calculation assumes that a three-year

uninterrupted income will ensure the family's financial

stability. For example, if the insured's monthly income is

MNT 1,500,000, the life value would be MNT 54 million.

What was the Mongolian attitude towards insurance

when you entered the industry?

Entering the industry with optimism and belief, we

found people's attitudes towards insurance were different

from our expectations. We recognized the need to promote

an insurance culture. Though Mongolians, with their

nomadic heritage, practice risk management, they often

lacked ways to quickly recover from losses. Traditional

means of support exist but lack formal responsibility.

Insurance introduces a system of collective responsibility.

We believe we've been successful in spreading insurance

culture through our products and services.

Given past issues like the bankruptcy of SCC and

cryptocurrency scandals, how does your insurance

system build trust?

Yes, the insurance industry is legal and regulated.

After the 2006 bankruptcy of the Savings and Loan

Cooperative, the Financial Regulation Committee (FRC)

was established. Since then, companies under FRC

supervision have not acted against citizens' interests.

There's an ecosystem monitoring compliance, and

international reinsurance companies back Mongolian

insurers. Our organization has cooperated with German

Munich Re since 2008.

Could you comment on the size and legal aspects

of insurance companies in Mongolia, particularly

in comparison to banks, and matters like pension

reform?

In Mongolia, insurance companies are relatively

small when compared to banks, reflecting a financial

landscape where legal issues such as pension reform have

become critical. The average life expectancy in Mongolia

is approximately 65 years, meaning many people retire at

60 only to face mortality shortly thereafter. This situation

lends urgency to the underlying issues with the current

pension system.

At its core, the challenge lies in the low pensions

provided by the centralized government system. Under

this distribution model, pensions are collected from

working individuals through taxes and transferred

to retirees. However, the system is strained, and the


accumulation of sufficient funds is no longer feasible.

Many promised pensions are now being supplemented

with state subsidies, revealing an unsustainable structure

that requires independent development.

The conversation is shifting towards a transition

from the distribution system to a savings system, with

the introduction of a multi-pillar pension model. Such a

system would empower individuals to create and manage

savings in their name, even allowing inheritance to their

children. This reform would mark a significant shift,

enabling Mongolians to leave a financial legacy to their

children rather than a burden of debt. It also aligns with

the cultural emphasis on providing for future generations,

recognizing the realities of life expectancy and the desire

to ensure family security beyond one's lifetime.

options to Mongolians. People often think of banks when

looking to increase savings, overlooking other market

options to secure finances. Moreover, they rarely consider

associated risks, such as health-related financial setbacks

leading to poverty. Insurance offers a low-cost financial

tool to mitigate these risks, ensuring future financial

stability for children.

The perception that children will remain

dependent until parents reach old age needs to change.

In the West and parts of Asia, insurance is recognized

as a manifestation of responsibility and love towards

dependents. A lack of foresight regarding potential health

issues, unemployment, or death exacerbates poverty.

Insurance also plays a vital role in expanding the middle

class, another significant goal in improving the financial

well-being of society.

Could you elaborate on the problems we face today

with the distribution system?

This issue is primarily linked to inflation and

demographic changes. During the 1970s and 1980s,

families typically had about 10 children. Since the 1990s,

due to economic challenges, family sizes have shrunk

to 1-2 children. Now, those two children must support

the pensions of 10 people, illustrating the demographic

strain on the system. Additionally, inflation has eroded

purchasing power, where monthly food that used to cost

100,000 MNT now requires 500,000 MNT or more. The

system struggles to meet these growing needs.

How is this system being fixed?

An internationally recognized investment system

is a potential solution. Investment ensures that the value

of money, such as 100 MNT today, retains its worth

over time. However, the current distribution system

lacks mechanisms to preserve value. Instead of merely

holding the insured's money, it must be invested, grown,

and managed. The distribution system falls short in this

regard, as there are no savings to invest, highlighting a

fundamental difference in approach.

How does your private pension and savings system

differ from the government system?

The private pension system allows money

to be accumulated in an individual's name, enabling

withdrawals even before retirement. Since the 1990s,

banks have adeptly offered financial tools and savings

A framework is an abstraction of a system, aimed at understanding,

communicating, explaining, or designing intended synergistic

properties of interest

SOCRATUS.mn

INVESTUS

45



THE UNCOMMON PATH OF

THE ORDINARY MAN TO

SUCCESS

TEGSHJARGAL J.

T

"There was a high probability that we would not be

here together right now," Adilbish L. said in a hushed tone,

accompanied by a smile. Rather than employing artifice, his

words emanated from a generous heart that cherished life

and acknowledged the value of every instant and encounter.

As he recounted, when he touched the edge of mortality, he

was "reborn" twice. A grave diagnosis of liver cancer is a

stark reminder that our time on Earth is finite. Adilbish L.,

who had dedicated his life to the road industry, had almost

reconciled with the notion that his life might conclude in

this manner.

SOCRATUS.mn

INVESTUS

47

“It was in that very moment that his son's and

brother's livers, combined with the fortune of

entrusting his life to them, granted him a second

chance at life."

Having devoted his life to the road industry

since he was 18, he had no concept of summer vacations

or idle moments. Initially, he felt ill at ease, perpetually

restless, but now he has grown accustomed to it. In reality,

he could be found standing somewhere in Mongolia,

amidst a sprawling road construction project, connecting

two points and layering asphalt from top to bottom.

Throughout his lifetime, Adilbish L. had personally

participated in building around 1000 kilometers of roads.

"As a child, I was infatuated with cars. Whenever a car

was parked, if there was a breakdown I could attend to, I'd

grab a wrench and get to work. After finishing school and

selecting a profession, I pursued a road engineering course

at the Irkutsk Polytechnic Institute. In Russian, it's termed

'Engineer of Automobile Roads.' I can't pinpoint the exact

reason, but due to the association with roads, I believed

that by choosing this profession, I'd be driving cars all my

life. It turned out to be a profession of constructing the

roads upon which cars travel. Once the choice is made,

there's no turning back, as one crosses into the realm of

human endeavor." Adilbish L. mentioned, "Now, I harbor

no regrets for opting for this profession." His path in

the road industry led him to numerous places. During

the socialist era, Mongolia had three major road trusts.

After graduating in 1988, he was assigned to contribute

to constructing a 234-kilometer road from Uvs province

to Handgait. Regrettably, due to market shifts, the budget

crisis ensued, halting a significant project in its tracks.

The road remained incomplete, consisting of earth

dams, drainage pipes, and only a partial layer of asphalt.

Recently, the road underwent repairs, and parallel to that,

his life journey underwent a pause.

It was merely an ordinary day in his life. Adilbish

was in good physical health; he had been engaging in

physical exercises since childhood. In his youthful years,

he used to assert, "Illness won't claim my life; it holds

no sway over me." On a fortuitous day, he underwent a

medical examination, and the doctor recommended a

CT scan. While he didn't attach much importance to it,

his indifference waned when the test results revealed a

dreadful diagnosis-liver cancer.

"Such words are enough to shock anyone. Those

words struck deep within me, and I felt as though

my life was about to end"

he sighed. He didn't experience any pain—there

was no physical discomfort to signal the turmoil within.

His strength naturally revived, allowing him to rise,

and he ventured to Singapore for further examination.

This decision was prompted by the fact that the liver is

a silent organ; it deteriorates unnoticed until it's too late.

Throughout the journey, he fervently prayed, "May it not

be cancer." Yet, reality defied his hopes. Unfortunately, a

liver tumor had attached itself to his artery. The hospital

declined the operation, citing excessive risk. He reached

out to various hospitals, and the only response he received

was from a Korean facility named "Asan." Although they

didn't explicitly promise a cure, their invitation to come

felt like a beacon of hope, rekindling his spirits. "Though

they didn't provide concrete assurances, their invitation

held a ray of hope. I'm generally an optimist-perhaps

overly so." The operation was inevitable. The quest

for a liver transplant donor was underway. "I'm a stout

individual. My liver is enlarged in proportion to my body

mass. When I approached my son about being a donor,

he cautioned that a shortage of doctors might arise. The

prospect of finding a second donor left me rather tense."

The organ must be donated by a blood relative, and

this excludes the possibility of using livers from unrelated

donors. Thus, when Adilbish L. turned to one of his two

brothers for help, he courageously agreed to be a donor

for his brother's sake. "I value my son and brother more

than anything," he said. Amidst the turmoil of diagnosis,

his mood had improved slightly, and the response to "You

only have a short time left..." was growing steadier. Yet,

this complex operation came with a substantial financial

burden, posing an additional challenge. More than

600 million MNT (Mongolian Tugrik) were required.

Unfortunately, his savings and the support of relatives fell

short. In a stroke of luck rather than magic, Adilbish L.

found salvation.

The Mongolian subsidiary of PwC, where his

wife was employed, provided National Life

Insurance coverage to all employees. Notably, key

employees were allowed to insure themselves

and their families. Fortunately, his wife had taken

advantage of this double insurance provision.

Delving deeper into the concept of "dedicating

oneself to work," it involves giving the precious moments

of life, energy, and consciousness to the young spirit of

enthusiasm. This is why responsible companies in Western

nations offer insurance to their employees, safeguarding

their youth.

Insurance is intertwined with the concept of a

"guarantee."

Therefore, individuals with insurance can access

the best medical facilities without bearing financial strain.

Adilbish's life was saved when this standard reached

Mongolia, making life insurance a tangible reality.

"At first, I couldn't believe it. The idea of

receiving such a substantial sum of money seemed

unbelievable. Yet, my life hung in the balance, and as I

teetered on the brink of death, I urged my wife to proceed,

thinking it was worth a shot. I awaited her return with

bated breath, knowing my fate hinged on her response..."

Life often takes unexpected turns, subjecting us to storms

of difficulty, but miracles can emerge when we place our

trust and hope in the unknown. Fate doesn't merely revolve

around chance—it's about seizing opportunities. In his

case, that chance and opportunity came in the form of

life insurance. The surgery lasted for a grueling 21 hours,

during which half of his son's and brother's livers were


transplanted into him. His wife noted that the doctors were

visibly exhausted after the arduous procedure. However,

the most joyous news for her was that her husband had

survived the surgery and was given a second chance at

life. His younger brother and son, who had selflessly

given of themselves, were also in good health.

"But now it has fully regenerated. 'What a magnificent

creation God has made of the human body,' he remarked,

a smile lighting up his face. 'Isn't it a miracle to be able

to bestow life upon one another?' The next challenge,

however, lay in the realm of finances. Now, he goes on

to share and elucidate the advantages of insurance with

everyone he encounters.

'Only those who cherish life choose life

insurance. Life is unpredictable, and illness often arrives

like a sudden wave, wordless yet powerful. When that

moment comes, it shouldn't be a matter of departing this

world due to financial constraints or living out the rest of

one's days in a state of incompleteness. 'But those who

take risks are the fortunate ones.' To be more precise, he

was fortunate during peacetime, he paid an insurance

premium of 4 million MNT annually. As his health began

to decline, he was able to reclaim his life from the clutches

of a dire ailment, receiving a payment exceeding 400

million MNT. While he underwent treatment in Korea,

he expressed deep gratitude for the insurance company's

direct involvement with the hospital and their meticulous

management of the process. Upon regaining his health, he

made it a point to personally convey his appreciation to

all those who aided him. He took his wife to the “National

Life” Insurance company's office, where he met with

director and employees. The Director Mongolkhuu G.

said,

"You hold our insurance coverage, and we fulfilled

our responsibility. Yet, the ones truly deserving of

your appreciation are our policyholders."

It's said that one is for the masses, and all unite for

one. Adilbish L.'s medical expenses were covered by the

insurance fund established by all policyholders. He shared

that he intends to resume work next summer, choosing

to spend the inaugural 'summer of settling down' in his

conscious life, dedicated to preserving his lineage. In the

interim, he won't neglect to share the story of the deceased

donor and the importance of insurance with everyone he

encounters. 'There was a significant likelihood that we

wouldn't be gathered here today,' he began the meeting.

But as I reflect on the life path that brought us together

and provided me the opportunity to hear the narrative of

this remarkable individual, I'm overcome with gratitude.

What a privilege it is to be alive."

"But now it has fully regenerated. 'What a magnificent

creation God has made of the human body,' he remarked,

a smile lighting up his face. 'Isn't it a miracle to be able

to bestow life upon one another?' The next challenge,

however, lay in the realm of finances. Now, he goes on

to share and elucidate the advantages of insurance with

everyone he encounters.

SOCRATUS.mn

INVESTUS

49


SOCRATUS.mn

INVESTUS

51


INTERVIEW

STEAM FOSTERING OUR

NEXT GENERATION WITH

COMPETENCES FOR THE

21ST CENTURY

EDUCATION

First of all, let's talk about the story of creating a social business in the

education sector.

W

KHOS-OCHIR TSOGWOO CEO, "STEAM EDUCATION

MONGOLIA" LLC

We began researching in 2017 and concluded that the best

pedagogical approach is the STEAM program, which was gaining

attraction internationally. Thus, in 2019, STEAM Education

Mongolia LLC was founded to localize the STEAM education

programs in Mongolia, foster children's development, and invest

in education. As you know that STEAM stands for Science,

Technology, Engineering, Art and Maths, this abbreviation

was adapted into a Mongolian word SHIMT+ which perfectly

expresses the concepts plus contains meaning of being keen

and beneficial. The name and trademark of SHIMT+ have been

certified as intellectual property. Initially, we operated solely

through the training center, but after a thorough examination of

the content and methodology, we evolved our business model

to promote the program's significance and advantages to a

broader audience. Along the way we proceed, many fundamental

questions kept arising, such as; What is the education system of

Mongolia like?, What are we striving for?, What characterizes

human intelligence?, What defines a Mongolian?

SOCRATUS.mn

INVESTUS

53

accompanied by a fully-equipped laboratory. The

Kindergarten solution also contains a fully-equipped

laboratory with 200 lessons across eight modules for each

age group. All these programs come with a manual that

aligns with the teachers' methodology.

So you got into research?

Indeed. We sought to understand children's

intellectual processes, identify suitable teaching methods,

evaluate teaching practices and materials in Mongolia,

and define the concept of education within the context

of the nationality. Collaborating with "Young Researcher

Supporting Foundation" NGO, we embarked on research

in 2021. As the study commenced, our perceptions of

education began to shift. We examined everything related

to education, from schools and kindergartens to teachers.

For example, the "Law on Education" defined "Education"

inconsistently. We found a need to clarify and develop

many concepts, including knowledge, abilities, attitudes,

and values, along with their content, goals, methods, and

evaluation criteria.

What are the features and advantages of the STEAM+

program?

Our program aims to develop not only children's

knowledge and abilities but also their attitudes and values,

referred to as comprehensive competence. We strive to

create the most suitable teaching content and methodology

for skill acquisition, and our program includes a unique

evaluation method. For instance, we measure children's

attitudes by counting specific behaviors rather than

merely asking questions. We encourage hands-on

learning, believing that children retain more information

by doing. For example, children might make a battery

from a salt solution or a miniature telescope to understand

these concepts. By learning through the STEAM+

program, children acquire critical thinking, creativity,

communication, collaboration, and complex problemsolving

skills—essential competencies in the knowledge

age. Teaching these skills as early as possible should be

the goal of preschool and general education systems.

Let's discuss the solutions you offer to primary and

secondary schools.

We provide comprehensive solutions to educational

institutions, including 1) content and curriculum, 2)

teaching aids, and 3) required tools or labs. The school

solution consists of a 350-session comprehensive lesson

plan with 16 modules for primary and secondary levels,

How do you support teachers' teaching methods?

We offer programs and methodologies to

institutions implementing our programs. One critical

point is that our research has determined that teachers

should guide rather than instruct. The learning process

relies on children's engagement and growth, ensuring

uniform development irrespective of the teacher's

personal characteristics like experience, body language,

tone of voice, or communication style. The program

includes students' actions, like conducting experiments

and representing results, as well as teachers' actions like

posing and responding to questions. Additionally, we

aim to alleviate teachers' workload by providing suitable

videos, subject-related presentations, and additional

assignments for middle school science lessons.

What about discounts and flexible terms for your

program users?

When purchasing the program, schools have the

option to pay 30-50% upfront and pay the remainder in

monthly installments. Since educational supplies can be

costly, some schools might be concerned about the price

per lesson. However, viewing it from a different angle,

such as the value of 150 MNT per lesson, will lead to a

different conclusion. Studies show that one MNT invested

in a child's education can yield a return of 12 MNT.

How many schools and kindergartens in Mongolia

have introduced the STEAM+ program?

For the past two years, educational institutions have

been stalled due to the Covid curfew. Since reactivating our

operations over a year ago, we have offered the STEAM+

solutions to kindergartens, secondary and primary schools,

implementing it to varying degrees in 10 provinces. We

are collaborating with more than 120 public and private

schools and kindergartens. For example, Uvs province has

begun implementation in all 30 kindergartens, Chingeltei

district of the capital in 20 kindergartens, and Umnogov

province in all 32 kindergartens. We expect this number to

increase rapidly in the near future.

Has there been research on the progress of the quality

of education in those schools and kindergartens?

Yes, we are developing and implementing

a completely new evaluation method. The primary

assessment for measuring educational outcomes is

the Individualized Education Program. We work in

collaboration with schools to monitor progress. Traditional

assessments may focus solely on knowledge, perhaps

considering ability and attitude, but often only as an

assessment of knowledge about skills and attitudes. Our

approach is different. For example, we might ask a young

child how they would react if a stranger knocked on the


door, then analyze their response. Our goal is to foster

the ability to search, collect, process, draw conclusions,

and verbalize results, cultivating healthy living habits and

environmental awareness. For a kindergarten with 300

children receiving our comprehensive solution, the cost

per lesson for each child is 150 MNT. Schools such as

"Hobby" have implemented our program for short periods

and found improvements in children's scientific attitudes

and methods. Both students and parents have expressed

gratitude for the enhancements.

Engineered quality data is data that simultaneously possess the

properties of being real-time, documented, integrated, inclusive,

aligned, and uniformed. Figure 3 illustrates

characteristics of engineered quality data.

SOCRATUS.mn

INVESTUS

55

RESEARCH

1.

AN OVERVIEW OF RECENT RESEARCH AND REPORTS:

"REFERENCE MODEL OF ORGANIZATIONAL-LEVEL-

ECOSYSTEM FOR SUPPORTING THE ACTIVITY OF

INNOVATION DEVELOPMENT"

NGO "YOUNG RESEARCHER SUPPORTING FOUNDATION

T

This research was conducted by Socratus Studio in 2020 and

was jointly organized by the Young Researcher Supporting Foundation

and TUS Solutions LLC. The study's purpose was to develop a

reference ecosystem model applicable in Mongolia to foster a shared

understanding among stakeholders in the development of start-up

businesses. The research framework included defining support concepts,

incubator goals for start-ups, involved parties, goal implementation

indicators, and system properties, which were then modeled.


Core Concepts

The development of a reference model for an

ecosystem that supports start-up businesses was a key part

of this research. The following conceptual explanations

were developed:

• Innovation - The idea of creating a comparative

advantage for value creation through generating and

systemizing knowledge.

• Innovator - An individual committed to crafting

a solution that generates value by creating a

comparative advantage through knowledge creation

and integration.

• Start-up - An interrelated activity aimed at building

a business model that can provide inclusive and

advantageous values for stakeholders and transform

it into a sustainable system by developing innovative

ideas.

• A social system - Interrelated activities taken by a

group of people who share a common goal over a

certain period of time.

Results of the System Analysis of the Law on

Innovation

A start-up company, as a social unit system,

relies on laws, rules, and regulations that support it in

achieving its business goals in a stable and consistent

manner. Analyzing Mongolia's start-up business support

system, the study examined whether the "Innovation"

law, approved in 2012, encapsulates the characteristics of

a properly functioning system.

The Law on Innovation was assessed using the

TUS Model in system analysis, receiving a rating of

72.5%, indicating a basic ability to resist risk depending

on the system category.

These five systems were differentially coded

using the “Systems Coding Methodology,” with the startup

company, or the smallest unit, as the coding starting

point.

From the Conclusion:

1. The ecosystem supporting start-up businesses is

defined as a five-level system of systems, including

Human, Start-up company, Organizational-level

ecosystem for supporting the activity of innovation

development, Regional system for supporting the

activity of innovation development, and National

system for supporting the activity of innovation

development.

2. This ecosystem is not just a multi-level system; it is

also complex, involving numerous stakeholders and

influencing factors.

3. The subsystems of the ecosystem that support

startups are subordinate to a shared social goal. They

are then coordinated to form a mutually supportive

system that realizes a common objective and sustains

its existence.

In this research context, the ecosystem supporting

startups is defined as a system comprising five subsystems.

Starting with a human-centered and simple unitary

system, a complex high-capacity system is incrementally

built, with distinct record IDs and patterns for each.

SOCRATUS.mn

INVESTUS

57

RESEARCH

2.

“REFERENCE MODEL OF MONGOLIAN EDUCATION

SYSTEM AND DEFINING FUNDAMENTAL PROPERTIES”

RESEARCH PAPER

NGO "YOUNG RESEARCHER SUPPORTING FOUNDATION

T

This research was conducted in 2021 through the initiative of

the Gund Health Care and Education Fund NGO, in collaboration

with Young Researcher Supporting Foundation NGO, TUS Solution

LLC, the Educational Consulting Information Center, and 'Shimt

Education' LLC. The study aimed to define and describe the

fundamental properties of Mongolia's unified education system in

alignment with the principles outlined in the Constitution.


Core Concepts

• Education - The ability to create the knowledge that

a human needs to satisfy his fundamental needs

• Knowledge - Defining and identifying the attributes

of objects and phenomena within a particular context

or the consistent connections among them through

the collection, categorization, examination, and

analysis of data.

Map of the Concept of "Education"

Within the framework of this research, it has

been determined that the concept of 'Education' should be

presented in a model that not only ensures accessibility

but also fosters understanding among a broader audience.

Drawing upon the foundational spiral curriculum model

introduced by the esteemed psychologist Jerome Bruner,

a three-dimensional model has been developed. This

model, named Huch-21 or 'ErchHUCH-21,' encapsulates

the profound human drive for knowledge acquisition and

encompasses the twenty-one core human abilities that

underlie this pursuit of knowledge.

Unified Goal of Mongolia's Integrated Education

System

In accordance with the Constitution's

principles, the unified objectives of Mongolia's

integrated education system have been formulated

utilizing the goal properties of the TUS (Tailored Unified

System) model and the criteria established for these

objectives.

The education system of Mongolia means a complex

activity structure consisting of mutual value creation

and coordinated duties of stakeholders, which aims

to ensure the implementation of civil rights stipulated

in Section 16.7 of the Constitution by creating

and developing the environment and resources

necessary for education.

SOCRATUS.mn

INVESTUS

59

Indicators Reflecting the Attainment of Mongolia's Educational System Goals

/Skills that students should possess/

Stakeholders within the integrated education system will systematically fulfill the responsibilities required to

ensure citizens' right to education, enabling students to acquire essential skills to meet their fundamental needs. The

'Fundamental Human Skills' or Huch-21 skills that students should develop have been delineated (Table 2).

№ Skills that students should possess

1 Emotional Intelligence

2 Analyzing skill

3 Problem solving and decision making skill

4 Ability to think

5 Creative thinking skill

6 Systematic thinking skill

7 Data driven decision making skill

8

A skill that respect for heritage, historical consciousness

9 Skill that Search right data from digital data base

10 Adaptability to new technologies.

11 Algorithmic designing skill

12 Leadership skill

Conclusion

1. Given that the education system profoundly impacts

all segments of society and plays a pivotal role in

individual growth and progress, there is an immediate

necessity to forge an education system model tailored

to the distinct characteristics of Mongolian society,

intelligible to all stakeholders, and amenable to

refinement and enhancement.

2. By encapsulating the concept of education within a

three-dimensional model, namely ErchHUCH-21,

it has been illustrated that integrating educational

concepts, objectives, measures, and programs is

indeed feasible.

3. Utilizing the social unit system model as the logical

underpinning of the education system model, it has

been inferred that devising and executing individual

responsibilities for all involved parties, including

Parliament, the President, the Government, and

ministries, is attainable.

4. The education system, a intricate construct composed

of numerous relatively independent yet logically

interconnected subsystems of varying levels, can be

modeled according to the BoT-16.7 model for each of

these systems.

13 Curiosity and ability to learn skill

14 Adaptability

15 Self awareness

16 The ability to accept differences

17 Customer service skill

18 Communication skill

19 Team working skill

20 The ability to maintain a healthy quality of life

21 Ethical attitude


SOCRATUS.mn

INVESTUS

61

RESEARCH

3.

HOW DO WE BUILD A SMART CITY THAT IS MORE

CLOSELY ALIGNED WITH THE NEEDS OF THE

RESIDENTS?

INTERNATIONAL COUNCIL ON SYSTEMS ENGINEERING

WWe propose:

1. Humans belong at the center of the smart city.

2. The objectives of the city need to be dynamic to adjust

over time in order to best meet the increasing needs of

the residents.

3. As closed loop systems, cities must aim to effectively link

digital data solutions to human needs with a feedback

loop that allows for growth and dynamic adjustment.


The technology should be used to meet the needs of

the humans, and a smart city should be a place where the

systems meet the needs of the residents. We need everyone

to be engaged to get a complete view of reality.

SHOULD WE CHANGE OUR THINKING STYLE

AND TRY A NEW APPROACH?

economist Max Neef in 1986. Appendix B presents the key

tenants of Max Neef ’s taxonomy, including examples of

how human fundamental needs are satisfied. Based on the

proposed paradigm, a new framework was created to support

development of a smart city.

Research into the legacy paradigms that drove smart city

implementations revealed a pattern of assumptions that

lead to siloed or incomplete perspectives. As illustrated in

Figure 1, a single-sided view of a complex concept can lead

to different perspectives. These varied perspectives, and the

lack of understanding that others are looking at something

different results in misunderstanding and incomplete

solutions. TUSS reviewed paradigms dominating the current

framework of smart cities and proposed new paradigms based

on SCT-Systemized cognitive tools developed by TUSS. The

comparison of legacy and TUSS paradigms recommends a

subtle shift in how we define a smart city. Table 1 presents a

comparision of the legacy paradigms that guided smart city

development and a set of new paradigms proposed to focus

on the human as a central part of the smart city framework.

The INCOSE-TUS proposed paradigm is rooted in analysis

of a human fundamental needs taxonomy proposed by

№ Legacy Paradigms INCOSE-TUS Proposed Paradigms

1 A smart city is a city with all problems solved.

2 Humans are beneficiaries of a smart city.

A smart city is a city capable of promptly identifying

its problems and the root causes and mitigating the

root causes.

Humans are designers, inventors, developers, and

beneficiaries by generating knowledge for Smart

cities.

3 Technologies make Smart cities.

4

Big data is critically important for all decision

making for Smart cities.

5 A city has its own Mission

6

The city government guarantees rights of city

residents.

7 A city must satisfy the needs of its residents.

Humans build Smart cities.

Humans develop technologies that support human

activities aimed at building smart cities.

Big data is important, but it is not enough. To make

fast and accurate decisions, the city needs engineered

quality data.

A city has a Mission reflecting the common needs

of the humans in the city.

The rights of city residents are guaranteed by services

provided (or actions performed) by the stakeholders

within the city government.

A city must create an environment enabling its residents

to satisfy their own needs.

Table 1: Smart Cities Paradigms: Legacy and INCOSE-TUS Proposed

THIS INCOSE TECHNICAL PRODUCT WILL SOON BECOME PUBLICLY ACCESSIBLE

SOCRATUS.mn

INVESTUS

63

Young Researcher Foundation” NGO focuses on the development of human resources who can

contribute to the development of the Mongolian economic and business environment by cooperating

with teachers and scientists to improve research methodology and by boosting and stimulating systemic

and logical thinking, improving theoretical and practical knowledge

01. TRAINING

02. RESEARCH

03. FORUM

Young Researcher Supporting Foundation

youngresearcher.org

info@youngresearcher.org

7014-6804


INTERVIEW

OUR MISSION IS TO CREATE

THE SHORTEST PATH TO

LANGUAGE LEARNING

EDUCATION

Hello, I wish you a good day. Let's start by talking about how Brighton

Edtech builds its business.

ARIUNTUYA.A, CO-FOUNDER, NEOLINGO APP

F

First, in 2017, we initiated our activities to provide

English classroom training services with the main goal

of preparing students to speak English fluently. Despite

learning English from the 5th grade, very few people in

Mongolia can use the language fluently, which we identified

as a significant problem. Thus, for the past five years, we've

developed a language learning methodology tailored to the

characteristics of nationality thinking. In February 2021, we

attracted investment from "Socratus Startup Studio," taking

our business to the next level, digitizing our solutions, and

expanding access to English learning for Mongolians.

Today, after rebranding our first product, the SAM

app, we're ready to launch Neolingo, aiming to introduce it

to international markets. Next year, we plan to find a strategic

investor and target one international market.

SOCRATUS.mn

INVESTUS

67

I heard that you are working on an interesting solution

to compete internationally. Can you introduce it to our

readers?

In September 2021, we launched the SAM app, a

"Minimal Language Learning Solution," achieving 3000+

learners and 40,000+ downloads within a year. Building

on this success, we're introducing the Neolingo app, based

on the new Puzzle-Block method. It's a revolutionary

approach to language learning, significantly shortening

the learning process. It's not easy to change traditional

methods, but our tangible results have helped us move

forward, creating a startup with a solid foundation.

Finally, what changes has your company experienced

as a result of participating in the Socratus program?

Running a startup is an art, and most startups fail

in the risky environment. But Socratus helped us grow with

a focus on systems, aiming to become a company with a

healthy structure. This organic growth is essential for our

future stability. Since joining the program, we've expanded

from four employees to 15, all working toward our mission

of creating the shortest path to language learning.

Thank you.

Sounds very interesting. Changing the language

learning methodology and developing a new solution

must have required a lot of courage. Was the road to

creating this solution easy?

No, it was certainly not easy. Convincing

all stakeholders was challenging, but our students'

results proved the simplicity and effectiveness of our

methodology. In terms of sales, we broke even in our first

year, a key indicator of our success.

Congratulations. What are the main tasks planned by

your team for the coming years?

Working in the tech business was a new experience

for us, but we learned much. Today, we are ready to launch

our Neolingo app into international markets. Next year,

we are developing our 2023, 2024 plan to find a strategic

investor and target international markets.


SOCRATUS.mn

INVESTUS

69

RESEARCH

HELPFUL TIPS: 5 WAYS TO GET

OVER THE SUNDAY FEAR

TUSS.IO/BLOG

НWhat is "Sunday Fear"?

"Sunday Fear," sometimes called "Sunday Scaries," is

defined by the United States Cleveland Clinic as anxiety and fear

felt every Sunday. At its most basic, it's the feeling of anxiety and

agonizing sensation that occurs the day before our two days off, and

we go back to work. When you start thinking about your to-dos,

unfinished business, and things that worry you, you instantly go from

vacation mode to work mode, feeling anxious and uncomfortably

anxious, summoning your own Sunday Fear by imagining them. So

it's not surprising that Sunday Fear is common. Most people have

experienced it at one point or another. This is a normal response to

adapting to a different role or change.

However, this is not a clinical diagnosis.According to a

survey conducted by Linkedin, 8 out of 10 professionals fear

Sunday, with 94% of Gen Zs, 91% of Millennials, and 72% of Gen

Xers. From this, it can be concluded that the younger generation is

more affected by the fear of Sunday.However, this is not a clinical

diagnosis.According to a survey conducted by Linkedin, 8 out of 10

professionals fear Sunday, with 94% of Gen Zs, 91% of Millennials,

and 72% of Gen Xers. From this, it can be concluded that the younger

generation is more affected by the fear of Sunday.


What gives us "Sunday Fear"?

There are several reasons to be anxious on a Sunday

night. Among them:

• Stressful Job:If you have a very busy job and are

not satisfied as a result, chances are that you will

experience an increase in this feeling of fear. Just

when you thought you had a great weekend and got

rid of some stress, late Sunday night the demon on

your left shoulder starts whispering.

• Busy week: As soon as I start thinking about the big

work and responsibilities to be done in the coming

week, I feel anxious and already feel the "Sunday

Fear."

• Not finishing the previous week's work: According

to a Linkedin survey, one in three people feels

"Sunday Fear" because of unfinished business from

the previous week. We are anxious because all the

unfinished tasks will be pushed back and added to the

next week's schedule, creating a burden.

• Work-life balance: A Linkedin survey found that more

than 2 in 5 people who experience "Sunday Fear" are

motivated by trying to balance work and life.

• We may enjoy Sunday night dinner with family and

friends, laughing, or watching a movie's dramatic

ending. Yet, moments later, our minds focus on the

worries of the week ahead. Ending the weekend with

such feelings is inconvenient. If you're unsure how to

shake this anxiety, read on for some helpful insights.

1. Change Your Thinking: On Sunday night, try to replace

negative thoughts with positive and encouraging words

like "I can do this" or "This is nothing new, I'll be fine."

2. Remind Yourself: Reflect on your recent accomplishments

and take pride in them. Doing so will help you gain perspective

on your journey towards success.

3. Turn Your Fears into Action:If the Sunday dread creeps

in, take a moment to write down what is causing it. This

practice will assist you in comprehending and, ultimately,

managing your anxiety.

4. Complete Your Tasks: Before ending your work week,

ensure all projects and tasks are done. Review and adjust

your plans if needed, so you won't spend Sunday evening

worrying about the week ahead.

5. Make a Plan for the Week: If you're overwhelmed by the

week's duties, creating a to-do list and a strategy to tackle

it can ease your mind. With a relaxed mind and the TUSS

D+ app to plan your week, you can forget about Sunday

fears entirely.

If you're feeling the dread of Sunday, remember that you're

not alone. Many others share this fear. While you can't entirely

erase the fear of Sundays, you can reduce its impact over time

by being patient and managing it wisely.

SOCRATUS.mn

INVESTUS

71


SOCRATUS.mn

INVESTUS

73

INTERVIEW

A JOURNEY TO ENRICHING

THE WORLD WITH

NOURISHING BONE BROTH

INNOVATION

BAT-OCHIR GANBAT, CEO, "GARAANII STS FOODS" LLC

MMy name is Bat-Ochir Ganbat, and I have been serving as the

CEO of the start-up STS Foods since January 2021. Our company was

established in 2017 by three friends. Among our founders is Semjidmaa,

a health-conscious individual who values a wholesome lifestyle. When

the concept of producing organic food products that contribute to

human well-being and can be locally sourced arose, they embarked on

the venture with the objective of crafting food items from beef bone

broth. As a result of meticulous research and testing, the Yangztai brand

bone broth was introduced to the market in August of the same year.

My background is in food technology. In alignment with my expertise,

I worked as a consultant for Ms. Semjidmaa, contributing to product

development and technology. As I delved deeper into the wonders of

bone broth and its potential for expanded product range, the thought of

sharing the goodness of Mongolian animal-derived nutrients through

bone broth and related products struck me. Hence, I currently hold the

position of CEO.


SOCRATUS.mn

INVESTUS

75

Bone broth sounds quite simple. Can families use it

at home?

Our wives invest a considerable amount of time

in preparing bone broth, freezing it, and incorporating it

into meals. While there are numerous recipes for making

bone broth, creating soup from bones is more intricate

than just boiling them in water. The term "bone broth"

refers to bones being heat-processed using specialized

techniques, allowing the minerals within them to infuse

the soup, making it rich in nutrients. Crafting such

soup involves intricate technology, spanning from bone

preparation to liquid extraction. However, our research

indicated that homemakers are often unfamiliar with this

approach, and due to a lack of equipment, they struggle to

create high-quality soup. Therefore, addressing this need

by producing products is a top priority for us. Mongolian

livestock benefit from grazing on over 500 types of

plants, rendering them unique. The nutritional value of

Mongolian animals outshines that of farm animals.

Your company was among the first participants in

the Socratus "Incubation Program" and graduated

successfully. What advantages did the program offer?

In a nutshell, the program rescued our company

from potential bankruptcy. In January 2020, we secured

financial investment through program participation. This

funding enabled us to upgrade production equipment and

secure working capital. Moreover, the program offered

guidance on corporate governance and management

solutions. While resolving our challenges remained a

puzzle, the program's core attribute comprehending the

essence of a company and its developmental trajectory

proved more invaluable than monetary assistance. We

commenced our journey by defining the company's vision

and objectives collaboratively. This clarity bolstered our

employees' motivation. Being part of a larger holding

company presents advantages for business expansion

through collaborations with related entities and networking

opportunities.

In the realm of food products, factors such as hygiene,

safety, and nutrition warrant careful consideration.

Could you discuss the nutritional profile of your

product and its relevance to the populace?

Contemporary food consumption transcends mere

sustenance; it involves discerning which foods support

different facets of the human body. Research and analysis

are integral to blending ingredients into products for

optimal benefits. We adhere to a product development

policy informed by such research. Five essential nutritional

categories are pivotal: protein, carbohydrates, fats,

minerals, and vitamins. Mongolian diets are characterized

by higher meat and flour consumption and lower intake

of vegetables and fruits. Consequently, there is a vitamin

and mineral deficit among Mongolians. A 2017 "Food

Safety Survey" conducted nationwide revealed a 65%

food security deficiency. This statistic suggests a potential

for mineral and nutrient deficiencies, which can underlie

various illnesses. In our region with extreme climates,

cultivating vegetables, fruits, and healthful foods

affordably poses challenges. To validate the authenticity

and nutritional quality of our products, we subjected them

to testing in the second quarter of 2022 at the Bureau

Veritas International Testing Laboratory in Singapore.

Various soups contained 8.4 grams of protein per 100 ml.

Protein consists of roughly 500 amino acids, with ten being

essential and requiring dietary replenishment. Our product

contains eight of these essential amino acids. Of the 8.4

grams of protein, 8.1 grams comprise collagen protein.

Moreover, the soup exhibited low simple carbohydrate

content, and the oxygen content stood at 1.3 g per 100 ml.

Oxygen in food significantly aids digestion and intestinal

motility. Our products are free of trans fats and abundant


in omega 3, 6, and 9 fatty acids. Omega 9 content reaches

6.1 grams per 100 milliliters, renowned for its cognitive

benefits. In today's sedentary lifestyle, omega acids are

primarily derived from fish oil, but our products provide

ample supply. Furthermore, they are proven functional

foods rich in vitamins B3, B6, B12, calcium, phosphorus,

magnesium, copper, and iron.

Who constitutes your target demographic for using

your product?

In contemporary times, individuals exhibit

discerning consumption patterns. Instead of indiscriminate

product choices, people focus on the quality, nutritional

content, and additive presence in food. Our products

tend to resonate with those who share this mindset.

Specifically, mothers emerge as a significant demographic.

They prioritize offering nutritious fare to their families,

encompassing children, spouses, and parents. Our products

serve as infant nutrition introductions and provide soup for

the elderly and new mothers. This responsibility signifies

a considerable trust we uphold. Despite being a startup,

we have taken on a social responsibility role by supplying

our products to the SOS Children's Orphanage, benefitting

over 600 children and addressing nutritional shortfalls.

Did I understand correctly that you have initiated

product exports to Russia?

Negotiations are in progress to export pure and

miso bone broths for human consumption to Russia.

Collaborating with a pet food manufacturer, we initiated

the export of bone broth for dogs in October 2022.

Thank you for the insightful conversation. I

extend my best wishes for your future endeavors.

In the context of extending your bone broth offerings

globally, how well-prepared are you for international

market export and supply?

Samples of our products have been dispatched to

Korea, Japan, Russia, and China, initiating initial meetings

and research in partnership with companies in those

regions. Concurrently, we are undertaking the expansion

of production facilities, enhancing capacity, and seeking

additional investments.

International expansion mandates adherence to

stringent quality and standards. How do you address

this aspect?

With support from the European Bank for

Reconstruction and Development, we have integrated

ISO 9001 and HACCP standards into our operations.

We intend to establish a new factory in 2023, thereby

aligning with international standards. Apart from quality,

comprehending the core tenets of logistics, legalities,

and global standards is imperative. In this regard,

15 researchers and 3 Young Researcher Supporting

Foundation personnel are engaged in final-stage research

endeavors.

SOCRATUS.mn

INVESTUS

77


INNOVATION

"YANZTAI" BRAND BEEF BONE

BROTH

"GARAANII STS FOODS" LLC

BBone broth is rich in collagen protein, fiber, and amino

acids. Indeed, international scientists have substantiated that

animal support bones possess not only remarkable strength

but also encompass an array of vital nutrients. These bones

are rich sources of essential vitamins, minerals, calcium,

and iron. Beef bone broth is a versatile organic product that

relieves gas fatigue, enhances athletic strength, supports

immunity, treats joint and chronic diseases, suppresses

colds and flu, and provides energy. Bone broth offers the

following advantages:

SOCRATUS.mn

INVESTUS

79

• Joint health is closely tied to the collagen fibers found

at the ends of joints, tendons, and bones. Collagen

is the most vital molecule that maintains joint

health. Collar bones contain substances beneficial

to the body, such as glucosamine, chondroitin, and

hyaluronic acid.

• Bone broth is beneficial for hair, skin, and nails, and

collagen, its main building block, can be found in

a wide array of supplements and beauty products.

By consuming bone broth regularly, one can obtain

affordable, reliable, quality collagen.

• Bone broth contains a protein called gelatin, vital for

treating intestinal mucus. Increased permeability of

intestinal mucus leads to allergies and autoimmune

diseases, and gelatin helps block and repair this

hyperpermeability. It is highly effective for treating

stomach ulcers, diabetes, muscular and infectious

diseases, and jaundice.

• Reduce the need for meat. Consuming sufficient

gelatin can decrease the need for protein from meat

by up to 50%.

• Rather than using supplements like collagen,

preparing and consuming bone broth regularly with

soup meals is more effective and digestible.

Applications:

• Drink directly hot or cold

• Make a smoothie and drink it

• Use diluted in soups

• Use in the preparation of dry food sauces

• Use to flavor food

• Include in soups for infants

• Use during dieting

• Apply to patients with abdominal regimes

• Use during fitness and sports activities (Replenishes

athletic strength and reduces fatigue)

• Use instead of milk in coffee (Pure products prepared)


SOCRATUS.mn

INVESTUS

81

INTERVIEW

MEETING HUMAN NEEDS:

CREDIT SOLUTIONS THAT FIT

YOUR LIFE

COOPERATION

While acquainting myself with your organization's activities, I came across an

interesting statement. It is said that credit operations are carried out based

on knowledge. Could you elaborate on this aspect?

ERDENENYAM JIGJEE, CEO, "NVC NBFC" LLC

WWhen introducing new loan products to the market, our

organization diligently studies consumers' needs. Our approach

employs cognitive and systematic thinking methods in research,

enabling us to gather high-quality data and draw rational conclusions.

By utilizing systems engineering methods to understand the challenges

people face in meeting their fundamental needs and how we can address

them, we offer loan product terms tailored to each user's resources, thus

optimizing their financial assets.


SOCRATUS.mn

INVESTUS

83

Traditional lending institutions typically require

collateral for loans, and obtaining loans without

collateral is uncommon. It's been mentioned that

your organization offers unsecured loan financing for

startups. Isn't this considered high risk?

The lack of collateral remains a significant

hurdle for startups seeking essential financing from banks

and financial institutions to expand their operations.

Our company acknowledges that collateral isn't the

sole solution; startups can also pledge shares alongside

tangible and movable assets.

Moreover, we provide opportunities for loans

guaranteed by the Credit Guarantee Fund for both

working capital and investment purposes. We and our

partner organizations establish specific criteria for loans

involving share pledges and guarantee funds. Borrowers

meeting these criteria are considered to have relatively

low levels of insolvency, collateral, and governance risk.

Properly managed, risk can transform into opportunity.

Fintech companies have recently been more active,

with statistics indicating that fintech loans constitute

over 90% of total loans. Does your company have

plans to expand its involvement in fintech?

Absolutely. In alignment with global trends aimed

at delivering added value to customers through resourceefficient

solutions, we are devising and implementing

strategies to enhance value for our stakeholders by

introducing them to our credit products and services. Given

prevailing economic conditions and the growing financial

constraints faced by consumers, we are developing and

digitizing an intelligent solution for Finbot loan products.

Furthermore, in collaboration with startups enrolled in

the Socratus Studio LLC program, we are set to introduce

new fintech products addressing consumer needs in 2023.

What opportunities exist for businesses and

individuals to collaborate with your organization?

Non-Banking Financial Companies (NBFCs)

operating in Mongolia engage in activities such as credit

operations, currency trading, remittances, and factoring,

and they can also acquire licenses to conduct trust

activities. This type of savings instrument is relatively

unknown due to Mongolian law prohibiting the promotion

of trust activities. Amidst the uncertain global landscape

of 2023 and 2024, it is feasible to secure long-term

savings with consistent, high returns by investing funds in

NBFC trusts. Beyond returns, we offer regular updates on

our operational and financial sectors, enabling trustees to

continuously monitor their deposited funds.

Organizations can also collaborate with us on

payday loan products to best cater to their employees'

needs. Those interested in providing loans to startups

and SMEs with flexible terms can engage in our Project

Finance loan products. Our evaluation of organizations

relies on systems engineering-based methods, ensuring

efficient and effective data generation.


SOCRATUS.mn

INVESTUS

85

INTERVIEW

EMBRACING DIGITAL

SOLUTIONS FOR

EDUCATIONAL GROWTH

DIGITAL ERA

First of all, tell us about your story of becoming a CEO

of a technology company?

TURMUNKH O, CEO, "MEVENTO" LLC

I

I am 23 years old. At the age of 19, I first studied graphic design for

one semester at the University. During winter break, I watched a 3-hour

graphic design course online and immediately grasped the concept,

even creating a poster. However, by the end of the next term, many

students still struggled with poster design. I realized I was spending

money and time unnecessarily. Time is the most valuable human

resource, so I thought about how to bring this opportunity to others

in Mongolia. Since there was no unified online learning platform, we

created our Melearn platform, presented it to "Socratus Studio" LLC,

secured our first investment, and started working together. We're now

in our third year, developing educational social networks and striving

to meet continuous learning needs using technology.


SOCRATUS.mn

INVESTUS

87

Let's start with what are the opportunities and

advantages of technology start-ups to compete

internationally.

For software technology companies, the ability to

sell products globally without transportation and logistics

issues is a significant advantage. For example, applications

or websites can be sold anywhere in the world. Mongolia

lags behind in traditional business and industry, especially

in hardware technology, being 100 years behind developed

countries in phone, computer, and chip production. Apart

from mining, software technology export offers potential

growth. Our skilled personnel are even invited to work

for top companies like Google and Facebook. These

individuals can collaborate to export software technology,

either through B2C apps and websites or B2B SAAS

products and solutions.

How to export them and the possibilities?

Software companies can sell in a fully digital

environment without needing physical offices or employees

in target markets. Mastery of social media channels like

Google ads, Facebook, Instagram, and TikTok is essential.

Currently, Mongolia is underperforming in this area. I

have just joined the Google for Startup program, but that's

all. The critical question is how the United States sells

the same products globally, while Mongolia struggles to

break into international markets. After participating in

the "Google for Startups" program, I gained insights into

international sales methodology.

What is that?

Any product can be sold in any market, but

understanding the sales method, Sales Funnel, and

sequence is vital. This includes lead creation, relationship

building, trust development, selling to trusted individuals,

customer satisfaction, and encouraging repeat purchases.

If the "Global Sales Strategy" is understood, anything

can be sold in any market. Uber is a prime example; even

though domestic companies develop similar technologies,

Americans dominate globally because of superior sales

strategies.

First, we need to recognize our own mistakes. For

example, when we develop one application, we often

attempt to solve all problems at once. However, a company

with a single product cannot compete with one that has

introduced 10 products and services internationally.

We need to refine our products and services, offering

customers a solution that functions flawlessly from start

to finish. There is an opportunity to launch such a product

internationally that perfectly addresses a very specific

issue.

So, it is important to know how to advertise to citizens

and gain their trust?

Yes, going international is primarily about the

ability to sell your products and services on a global scale.

The specific product doesn't really matter. For example,

Facebook isn't the first social media platform, but it's the

best at selling itself. Tesla's electric car wasn't the first of

its kind, but they are now the leading seller in the field.

Many companies with better technological solutions than

Tesla have access to Tesla's intellectual property, but their

most valuable asset is their sales methodology. They excel

in this area.

At the end of the interview, please tell us about the

culture of your company?

Thank you. With the guidance and support of

"Gund Investment" LLC and "Socratus Studio" LLC,

we operate under the motto "Think carefully and execute

systematically." For the organization to be sustainable

in the long run, all stakeholders, including customers,

employees, shareholders, and suppliers, should benefit.

Stakeholders have specific roles and are accountable for

delivering results. If the results are not sufficient, they

take responsibility; if the results are achieved, the benefits

are clear. It means we must work together with a shared

understanding, common goal, and clear objectives. It all

starts with clarity of thought.

For start-up entrepreneurs, young people interested

in your industry, what would differentiate you from

others, and what space is there in this field?

From the content discussed on "Google for

Startups," the emphasis is on whether the product can be

sold rather than the product itself. Sales are the end goal.

For example, we made 200 sales to the Philippines and India

within a month through the "Google for Startups" program,

after failing to enter the Singapore market. I realized that

Mongolia lacks international sales specialists more than

technology personnel.

Is this a big space for Mongolians? What is the

differentiating angle when it comes to technology

companies?

Technology - Scientifically based and tested methods needed to

achieve specific goals /TUS solution LLC/


DIGITAL ERA

CONTINUOUS DEVELOPMENT

SIGNS MELEARN

AAN IDEA BORN FROM FAILURE

At a time when many events were flourishing in Mongolia,

Turmunkh O., a new student, founded Mevento to create a video version

of the current Clubhouse. Unfortunately, after 8 months, the company

went bankrupt due to inexperience and lack of focus.

SOCRATUS.mn

INVESTUS

89

In just 3 hours of e-learning, he acquired skills that motivated him to create his

ever-evolving site Melearn

However, he didn't let failure deter him. He took

a 3-hour graphic design course from an external platform

and learned how to design posters and brochures. The

next semester, he chose graphic design as an elective but

found the course lacking in substance. At the end of the

semester, none of the students could create quality posters

or graphics.

Making the Impossible Possible

Starting only with an idea and a computerwritten

project, he re-formed a start-up team in 2019 and

commenced operations with a group of 5 people. After

receiving an initial investment from Socratus Studio,

Melearn officially started its operations on December

1, 2019. Since then, they have integrated and uploaded

more than 150 comprehensive courses in 8 areas to the

platform.

Facing Obstacles and Difficulties

An interesting but daunting fact is that 90% of

startups fail because they are unable to realize their ideas.

Of course, in addition to teamwork, the determination to

overcome any obstacles is essential. The Melearn team

faced difficult times when people were skeptical about

online teaching and learning. Despite hearing discouraging

words like "it will never work, stop," the young team of 5

worked hard for a common goal, and now it has expanded

to 14 people.

The Impact of the EdTech Industry on

Education

What is EdTech? Simply put, EdTech stands

for Education Technology, referring to the utilization of

technological advancements to improve the traditional

learning process. For example, if you want to take a course

on Melearn, you'll need a smartphone, tablet, or computer,

along with a platform and application for viewing online

lessons.

Global EdTech Market Size: $89.49 billion in

2020, growing to $106.04 billion in 2021, and expected

to reach $377.85 billion by 2028 at a compound annual

growth rate of 19.9%.

Interesting Facts

81% of the world's teachers learned how to

teach using EdTech during the 2020 pandemic, and 81%

of college students used digital learning technology to

improve their grades in 2016.


Especially in the last 3 years, the industry has

developed rapidly, attracting many users during the

pandemic. For example, BYJU's, the world's first unicorn

EdTech company, reached an $18 billion valuation, up

from $1 billion in 2018.

But what about us?

In our country, the development of the industry

is in line with global standards, as evidenced by platforms

like Melearn, covering everything from personal

development to graphic design and investment learning.

Field of Continuous Development - Melearn

What is a Social Learning Platform (SLP)? It's

structured like social media platforms but focuses solely

on knowledge, skills, and industry information. For

example, when Premium users enter Melearn, they see

a newsfeed and can follow content creators and experts,

receiving real-time updates.

Advantages of Social Learning Platform

• Learning In-Demand Skills

• Positive Influence on Learning

• Retention of Higher Education

• Low Cost

• Increased Productivity

• A Worthwhile Investment

"The most valuable investment that will pay off

continuously is the investment in education."

Melearn offers features such as:

• Top 100+ Content Creators

• 150+ Comprehensive Online Courses

• 20+ Book Summaries

• 50+ Story Tips

• 100+ Podcasts

• 80+ Blog Articles

Even now, integrated e-learning platforms like this are rare

in our country, and only 32 of the 700 EdTech companies

worldwide have become unicorns.

Finally:

How to Become a Melearn User?

Ready to make your next value investment in

continuous growth? Becoming a Melearn user is as simple

as visiting their website and clicking the 'Register' button

at the top right. Enter your details, and your journey

towards continuous growth will begin.

In addition to the platform, Melearn also offers

apps. With the V3.0 update, they have developed the

current Social Learning Platform concept and introduced

the "Pioneer 3000 Premium" program.

By becoming a member of the program,

you will enjoy:

• All in One Place: Access the world's most soughtafter

skills before anyone else. Enjoy lessons from

experts across various fields, along with story tips,

short listening books, podcasts, and blog articles, all

in one location.

• Little by Little: For a total of 3 months, watch courses

worth 6 million MNT on Melearn for just 99,000

MNT.

• 150 Courses: Attend over 150 types of e-courses in 8

areas, including business, marketing, graphic design,

finance, investment, and information technology.

As a reminder, registration for the program is about to

close, accepting only 80 participants. So don't delay;

register before it ends. Choosing them is a decision you

won't regret.

SOCRATUS.mn

INVESTUS

91


SOCRATUS.mn

INVESTUS

93


SOCRATUS.mn

INVESTUS

95


INVESTUS 2023 MAGAZINE

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template ?