Business Strategy - Simulation Advantage
Being able to anticipate, learn about and adapt to change is increasingly important for you. Simulations can reduce your costs, risks, time and greatly increase your odds of success. Simulations can be used to develop and test your products as well as your business strategies and business models.
Most companies conduct some experiments, but often they are too costly, lengthy, and ineffective.
Boston Consulting Group outlined six levers for “capturing a simulation advantage.”
“Royal Dutch Shell’s GameChanger unit uses an online collaboration portal, workshops, and relationship with universities to gather ideas from contributors” in and out of the company
Amazon.com tests “numerous page variants on different groups of consumers and track their resulting behavior”
“The European telecommunications company Orange…uses its online platform to interact with 30,000 Lab Explorers – customers who contribute to the company’s innovations”
Best Buy used an online tool where employees provided their best bets on forecasts online. The accuracy of the forecasting was significantly improved
Some companies provide learning through “online knowledge platforms or virtual training”
Walmart “tests different layouts in its own stores as a regular part of its operating model. Traffic patterns are measured for each layout, and the most successful designs are rolled out across the company”