Dynamic Simulation

All of management’s value is derived from managing uncertainty. After all, if a business has certainty and clarity in all things, then there really isn’t that much to manage.

But just how do you ‘manage’ uncertainty? Many things that influence what you are trying to achieve (your inputs) vary by some degree in the real world - wages, materials and commodity costs, financing costs, the time taken to perform a task, for example – and to make a decision you need to have some idea as to the effect of this variation on what you are trying to achieve. Analytica helps you understand this variation through dynamic simulation.

Imagine, for example, moving project assumptions and seeing the effect on net profit; or changing value chain deliveries due to delays in production or weather conditions, and seeing the hit your cash flow is going to take. Analytica helps you generate a combination of the strategic and tactical, to let you see what really matters – the real world view. Dynamic simulation allows the integration of marketing, operational and financial information into complex, predictive (if that's what you need) business models.

How do we do this with dynamic simulation? Look at the graphic below:

We show you what happens when you make changes to critical variables, allowing you to assess how your decisions might drive business outcomes. We can do it quickly, too, enabling you to understand what causes the biggest impact on your bottom line. And, if you like, we can train you on how to do all of this for yourself.

At the end of the day our mission is about helping management check if what they are doing makes sense. We build and apply mathematical models to test strategies and solutions to problems in a way that is practice-based and dogma free. But we still believe in rules. Analytica works to a particular manifesto in relation to any and all modelling work we undertake. You can find it here.

If you would like a brief view of our service offering you can download it here. Or, you can just contact us. We'd love to have a chat.