Simulation Modelling

In an increasingly dynamic current market context, decision-making processes are more complex than ever, and the consequences of crucial decisions are often counter-intuitive and not even visible. Yet, through the support of new “strategic system thinking and decision-making” methodologies, we are now able to measure this complexity.

Simulation modelling is the creation and analysis of a physical model’s digital prototype that is able to prefigure the evolution of a system without knowing its formal properties in advance. By deducing the general characteristics, such as the “elementary” behaviors and the interactions of their components, from historical data analysis and company records, simulation modelling enables us to observe the evolution of these behaviors over time. In doing so, “new” macroscopic properties emerge, which prove useful for the interpretation and analysis of the evolution of the system as a whole.

The main objective of strategic simulation modelling is to apply the basic concepts of systemic thinking and dynamic simulation to real-life cases. This can be used to analyze strategic concepts such as:

  • Market positioning
  • Value proposition distinctiveness
  • Business models
  • Strategic barriers

The methodological advantages are:

  • Carry out informed and predictive experiments in a virtual, risk-free environment using technological platforms;
  • Enrich manager’s cultural background with new “vision” methodologies that complement basic skills, so that they may be used to interpret situations, and predict behaviors and trends;
  • Improve the analysis and assessment process of the corporate strategy and/or operating policies, such as resource planning and capacities in relation to both planned and unexpected events, all while analyzing the connected risks.

Combining traditional consulting methods with these analytical tools can help managers improve their understanding of phenomena, and identify the most coherent strategies to their objectives.