Business Models

These models and simulations have been tagged “Business”.

Related tagsTechnology

Insight diagram
​The Problem: 
What is the true cost of escalation?

Things to measure: How does this impact:1. (MONEY) Cost per incident - what does this cost the business? 2. (TIME) Service Level - how does this impact desired service levels/SLAs? 3. (PEOPLE) Agent utilization - how does this impact backlog? are we overworking engineers? Does this contribute to staff burnout?

Clone of AGILE 2017: True Cost of Escalation
Insight diagram
​Purpose
Enables the different components in the 5 capability model in a visual manner for Enterprise and Business Architecture stakeholders.  


BUSINESS ARCHITECTURE 

5 Capability Model
The 5 capability model has many stock and flow children which each organization will need to model based on their current state.  

  • Aligns to APQC Process Framework
  • Aligns to Principles in ISO 9001, 26000 and 27001 

ENTERPRISE ARCHITECTURE 
Aligns Zachman Framework Enterprise and Business Architecture with Executive and Leaders from a business management level across any organization.  

A method in which to align and benchmark any organization or agency, with the system(s) logic required from Architects in Row 3, to enable Row 4 engineers who need to supply physics. 


Semantic
Getting terms to align to the generic objects can be a trying task, unless you simply list the stakeholders "semantic" term below the stakeholder in the presentation layer by order shown in the business process management section above the capability management group.  



Clone of Clone of To Be Business and Technology Architecture (Lumen Technologies)
Insight diagram
Clone of Factors influencing strategy implementation
Insight diagram
Clone of Clone of Grocery Store System - Stock & Flow Diagram/SD Model
Insight diagram
This is a model which attempts to replicate a simple reinforcing loop described by Dennis Sherwood on page 75-87 of his book 'Seeing the forest for the trees - a manager's guide to applying systems thinking.

This is not a realistic model but I just wanted to reproduce it as practice of implementing causal loop models.

www.stantonattree.com
Clone of Seeing the forest for the trees example
Insight diagram

Model of growth from diffusion from John Morecroft's Strategic Modelling and Business Dynamics Book Ch6 p174-191. A discussion of a bigger model of People's Express is in http://bit.ly/HdaGy4 for a related You Tube video by John Morecroft on Reflections on System Dynamics and Strategy

Clone of EasyJet Fliers Model
Insight diagram
Bottom-Up Sales Forecasting for Startups

The purpose of this simulation is to demonstrate the implications of forecasting sales without consideration for how much it cost you to acquire a lead and how much you have available to spend. A common mistake in sales forecasting is to define your # of expected sales leads based on your total market size and your assumption regarding the % of that market you can reach. 

This model demonstrates the forecasting impact to defining the # of expect leads based on how much it cost you to acquire a lead and how much you have available to spend. 

Important Variables:
1. [UseLAC?] (set to 1 to use the lead acquisition cost to define your reachable market; use 0 to set the reachable market to equal the total available market size)
2. LAC (should equal what it cost you to acquire a lead)
3. SalesMarketingBudget : how much you have available to spend on customer acquisition

Other Variables:
4. Price : Avg spending amount per new customer
5. Total Available Market : Total available market size
6. Conversion Rate : the % of your target market that will become a lead


Clone of Bottom-up Sales Forecasting
Insight diagram
Causal loop diagram illustrating one of the contributing factors to employee hiring.
Clone of Hiring Cycle (1-Loop; Balancing)
Insight diagram
EEIS Health App
Insight diagram
​The Problem: 
What is the true cost of escalation?

Things to measure: How does this impact:1. (MONEY) Cost per incident - what does this cost the business? 2. (TIME) Service Level - how does this impact desired service levels/SLAs? 3. (PEOPLE) Agent utilization - how does this impact backlog? are we overworking engineers? Does this contribute to staff burnout?

Clone of AGILE 2017: True Cost of Escalation
Insight diagram
Oil and World
Insight diagram
Production and Inventory Model
Insight diagram
The meaningful relationship between a business and its customers should be a reinforcing structure.
Clone of Business and its Customers
Insight diagram
​The Problem: 
What is the true cost of escalation?

Things to measure: How does this impact:1. (MONEY) Cost per incident - what does this cost the business? 2. (TIME) Service Level - how does this impact desired service levels/SLAs? 3. (PEOPLE) Agent utilization - how does this impact backlog? are we overworking engineers? Does this contribute to staff burnout?

Clone of AGILE 2017: True Cost of Escalation
Insight diagram
Process of petrol from a petrol pump being used to fuel vehicles
Clone of Petrol Station Story/Simulation Week 10
Insight diagram
chicken farm
Insight diagram
Clone of Grocery Store System - Stock & Flow Diagram/SD Model
Insight diagram
This causal loop diagram is the first step in looking at the relationship between business analysis performance and organizational performance.
Organizational Systems Performance Model - Core Variables
Insight diagram

This BSC is a conceptual framework which translates an organization’s vision into a set of performance indicators distributed among four perspectives: Operational Efficiency, Customer, Internal Business Processes, and Learning and Growth. It identifies key variables and how to simulate these variable by taking into consideration the four perspective to achieve the desired goal.

BCS_bauson
Insight diagram
Bottom-Up Sales Forecasting for Startups

The purpose of this simulation is to demonstrate the implications of forecasting sales without consideration for how much it cost you to acquire a lead and how much you have available to spend. A common mistake in sales forecasting is to define your # of expected sales leads based on your total market size and your assumption regarding the % of that market you can reach. 

This model demonstrates the forecasting impact to defining the # of expect leads based on how much it cost you to acquire a lead and how much you have available to spend. 

Important Variables:
1. [UseLAC?] (set to 1 to use the lead acquisition cost to define your reachable market; use 0 to set the reachable market to equal the total available market size)
2. LAC (should equal what it cost you to acquire a lead)
3. SalesMarketingBudget : how much you have available to spend on customer acquisition

Other Variables:
4. Price : Avg spending amount per new customer
5. Total Available Market : Total available market size
6. Conversion Rate : the % of your target market that will become a lead


Clone of Clone of Bottom-up Sales Forecasting
Insight diagram

Harvested fishery with endogenous investment. Ch 9 p340-345 John Morecroft (2007) Strategic Modelling and Business Dynamics

Harvested Fishery with Endogenous Investment
Insight diagram

​This model attempts to understand the behavior of average lifetime of companies in the S&P500 index. The reference mode for the model is a graph available at this link: https://static-cdn.blinkist.com/ebooks/Blinkracy-Blinkist.pdf (page 5) which was discussed in the System Thinking World Discussion forum.

Mergers & Acquisitions can be one of the reasons for older companies to be replaced with newer companies in the Index. With M&A of older companies, the empty slots are taken over by newer companies. However, overtime, these new companies themselves become old. With steady M&A, the stock of older companies decreases and stock of newer companies increases. The result is that average age of the companies in the S&P Index decreases.

The oscillations in the diagram, according to me, is due to oscillations in the M&A activity.

There are two negative feedback loops in the model. (1) As stock of new companies increases, the number of companies getting older increases which in turn decreases the stock. (2) As M&A increases, stock of older companies decreases which in turn decreases M&A activities.

Limits of the model

The model does not consider factors other than M&A in the increase in number of new companies in the Index. New companies themselves may have exceptional performance which will result in their inclusion in the Index. Changes in technology for example Information Technology can usher in new companies.

Assumptions

1. It is assumed that M&A results in addition of new companies to the Index. There could be other older companies too, which given the opportunity, can move into the Index. Emergence of new technologies brings in new companies.

Clone of Age of companies in S&P500
Insight diagram
EEIS Health App