Learning THread for hybrid models including Grimm's ODD and Nate Osgood's ABM Modeling Process and Courses

Model in support of an article being written about the relationship between investment and austerity. See Version 2

Use a savings account model to investigate the manner in which inflows and outflows govern the quantity of a stock. Extend the structure to create and investigate the relathionships of a growth producing reinforcing loop.

PCN Notes: change structure so that <time> is not needed in equation for interest, and share with Gene.

This model contains components supporting the Fire the Bunch example for Systemic Perspective Development Guide.

Challenge the assumptions around aging AR symptoms 

1. The named issues are potential problem statements-in my experience these are the least likely cause.  

2. We can conclude the same lower probability and unlikely to be the actual source of the problem.   

In high tech or industries with products and services we can assume the introduction of stronger controls around software and management of the software when forced into a product model.   The primary threat for most ADVANCED or medium risk.  
While some cases may have the probability to be simply resource performance or lack of.  

The most common problem which has been associated with the complaints or problem targets in this model have more to do with understanding the different revenue triggers in an offer.

Serious again AR reports with specific customers of higher dollar amounts, two distinct patterns identified

1. High Dollar large Enterprise or Global Customer

AND 

2. Aging beyond 90 days

In the situations where both 1 & 2 are true; assume a different problem.  Large customers typically do not buy boxes.  These customers can buy in bulk at discounted rates.  

If a customer purchased from you and you are not a large distribution house or similar sized strategic partner with other large customers.  You are far more likely to be moving from boxes to solutions.   The growing pains tend to be greatest around unpaid invoices in AR.  

Not having a resource or business model to support the solution concept?  Dig deeper-3rd party service providers may be doing the work.  

Custom solutions are always new-as these models are never straightforward and no two solution providers have managed to deliver in the same way.  

Prevent

The highway analogy was designed specifically for this purpose.  

See the "offer type" to aid in the way you might distinguish between the various growing pains.   

See the two sections near the end of the prezi which supply the context for comparing inputs from supplier expenses to inputs from revenue.   
http://prezi.com/zermje-isahd/1-design-strategy-and-value-for-your-new-coaching-business/

Each lane corresponds to the low=Fast lane, medium=middle and high = Slow lane

Solutions
In the North Bound direction, you can assume payment upon reaching the final destination. In some cases we are talking about a year.  

If not a solution - then you are likely dealing with other problems such as...
Do partial shipments prompt an invoice?   

Customers will most often pay when all components are shipped and actually mark your organization lower for making their effort higher to check in each part or the components individually.   

The customers warehouse moves often throughout the day, the chances of losing components are greater and problematic. In the voice of the customer you will find many customers know the problem can be avoided if your process shipped all components upon the full orders readiness.    

Does the invoice issue based on shipment of product or software?  

A server without the license admin - cannot be billed until registration of the software.  

Hardware must be loaded to download or load from CD an admin server seat.  

No clients nor the Server admin can be invoiced until the various hardware components are complete and tested.  

Revenue recognition on the hardware may be the price for a server and all components.  The customer can dispute the invoice until the point of registration of the server admin.  

Drop ship from supplier to customer initiates an invoice?
When drop ship prompts an invoice the process must be redefine to align with the appropriate risk type.   

Auditors will eventually realize your invoice issue and ability to accurately