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Simulation Science
specialists work with clients to build a custom simulation of the problem being studied to assist decision-makers in seeing
the complexity of the situation so they can 'rise' above it and focus on activities that benefit the entire company.
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For a telecom we build a simulation tool that enables the future performance of the company to be estimated based on
the implementation of different Customer Management strategies.
We pulled together the resources to
support:
- A process to gain a shared understanding of the drivers, issues and potential options
- A
simulation that can quantify and trade off competing options
Customer Management strategies will impact on the
telecom's performance as measured by KPIs. However the KPIs should not be viewed as independent.
Customer Management
strategies are implemented in a complex environment where the impact may not be immediate, and may have counterintuitive
effects (whether positive or negative) elsewhere within the customer management system.
In order to asses the
effectiveness of different strategies the telecom would need to understand the influence that different strategies will have
on performance over time.
We roll-out real-time simulation systems on a per-seat user licensing structure. As the
scope of the simulation grows (and the need to share parts of the interface and dashboards with larger numbers of people) it
creates a need for granting users access to parts of the simulation.
Linkages into SAP Strategic Enterprise Module
(SEM)/Business Wharehouse (BW), online analytical processing (OLAP) servers like Hyperion EssBase, or other data wharehousing
technologies through an enterprise architecture layer ensures the system is continually fed real-time data.
/>Here's an example...an advertising agency comes up with an idea for a loyalty campaign. They are allowed access thru their
client to the telecom's simulated business environment. The loyalty program idea and the assumptions driving the idea are
inputed by the marketing managers and a team of ad agency professionals and others within the telecom into the simulated
business for testing.
They note the impact of the campaign on building awareness and moving people from a
'Fickle' customer resource-stock to a 'Loyal' customer resource stock. The simulation provides foresight into plausible
future scenarios. They are noted, the project is aligned with other activities and approved.
Early campaign
results results are compared against the simulated scenarios to see if we see a trajectory for our business that might match.
As the campaign unfolds, key flows are watched as early indicators for possible problems: is the loyalty program achieving
its target objectives?
Over time, the activities are continually analyzed by simulation experts to ensure that the
model boundaries don't expand too much beyond what it's designed to address. Yet, the model can also evolve and thru
iterative development become more robust as a decision aid. It can expand intelligently and give managers the ability to see
the forest and the trees thru an understanding of the underlying structures of their complex business.
©
Justin Lyon, 2005– Present. Reproduction permitted with reference to Justin Lyon.
For more information, contact
Justin Lyon at justin1028@yahoo.com
Justin Lyon's blog:
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