I had the pleasure of speaking at ProductCamp RTP 2018 on the topic of reducing business risk through simulation — how business managers can achieve the same kind of benefits that pilots receive from the use of flight simulators. I have reduced my original ProductCamp RTP 2018 presentation to a 6-minute movie (below).
In simulated flight, pilots navigate a realistic virtual world while a trainer subjects them to rare events like engine failure. The pilot learns through repeated failure how to recover from these challenging training events without loss of property or life.
Business simulation offers managers the opportunity to assess the likelihood of outcomes based on various assumptions in a safe environment before actually executing any decision. Business simulation can be applied to a wide variety of questions such as:
- what impact will price variability have on units sold, COGS, revenue, and profit?
- when should I hire and train support personnel as sales grow?
- how can I manage the phase-in of a new product against the phaseout of the product that will be replaced in order to reduce scrap inventory?
- how should I bundle a basket of products in order to optimize profit?
Contact Ringbolt today to learn how modeling to simulation can help de-risk and better plan your project.