Dynamic modeling

Now the problem of implementation of strategic planning and management is a necessary condition of successful development of almost all spheres of business. At the same time the wide range of a managerial personnel faces a problem of impossibility of automation of the whole class of the business processes connected with decision making support systems. The basic reason of it is often connected with impossibility of accounting in the traditional systems of diversity of solutions of managerial tasks.

The special class of the systems of strategic management and decision support is represented by systems allowing to perform dynamic modeling of processes. When using methods of dynamic modeling activity of the company is described in the form of a mathematical model in which all business challenges and processes are represented as the system of the interconnected calculated indicators.

Tasks

Creation of the similar visualized model allows to analyze the possible directions of development of these or those processes in the organization, to reveal and reflect interdependence of these processes in model. For example, using the system of dynamic modeling it is possible:

• estimate profitability of the new directions of business, creation of a new product, different forms of promotion and positioning;
• estimate efficiency of the directions, employees and HR department, loading of the areas, uses of material resources;
• analyze and model influence of external factors on performance indicators of the company — as in general, and in the separate directions;
• perform modeling of values of a number of budget indicators, for example a bonus fund, depending on performance indicators of division;
• model influence of the general financial performance of efficiency on budgets of divisions within process model of the main fields of activity.

Integration

The systems of dynamic modeling integrated with the systems of strategic planning allow to create the separate applications solving specific objectives of modeling taking into account the constructed models of processes in a system and the displaying results of modeling on the special dashboards which are used in the course of decision support by the management.

Success of creation of an effective management system directly depends on a methodological component, on quality of carrying out the initial stage on identification and formalization of the strategic objectives and tasks set by the management, to selection of foreground processes and activities, careful study of causes and effect relationships between processes and indicators; from experience and qualification of the partner company on implementation able not only to implement implementation projects of information systems, but also to provide the high level of management consulting.

At accomplishment of all above-mentioned conditions of the greatest effect of use of support system of acceptance of management decisions it is possible to reach, having constructed the complete solution integrating in itself:

• dynamic simulation models;
• instruments of strategic planning and management with attraction of methodology of key indicators of effectiveness (KPI);
• means of the analytical reporting;
• ERP system as management tool resources.

See Also

• BI
• Business simulation
• SPPR