The Fog – Clearing the nebulous enterpreneurial uncertainty

May 08, 2020

The current global situation painfully demonstrates the hold an infectious organic structure has taken of the entire globe. Every day, we are confronted with personal and corporate fates, but despite all the tragedy, everyone is gazing at the post-crisis period with cautious optimism. For companies, the existential question of survival arises, since this so far unprecedented situation of a global shutdown is uncharted territory for everyone. What will happen next? The question is not only relevant for each individual, but especially for the people responsible in corporate management. This extreme situation calls for new approaches in order to get back to normal operations quickly and take the necessary steps. But what actions are required and the even more urgent question: what are the consequences? As we learned painfully, there is no longer an isolated viewpoint, but we need to consider the whole situation in all its complexity.

Digitization and Industry 4.0 – buzzwords that have been previously regarded as visions can now actively support this process and shed light on its nebulous uncertainty. Modern tools help to organize, control and optimize business processes. Planning is the central element here, because new situations involve changed parameters, the effects of which only have a very high risk factor. One way to take the uncertainty out of the stochastic processes is by virtually representing the business processes with the addition of a simulation. The parameter-driven approach shows the effects of changes in the processes or the framework conditions. Individual factors are varied in a targeted way and both assessed and qualified based on the simulation evaluations. Company-wide observations as well as the perspectives of the business units can be presented by this modern and innovative approach to a meaningful optimization.

The implementation of such an IT-supported simulation requires creative tools and a well thought-out approach that takes the following steps into account: Parameterization of individual sub-areas of the processes, simulation in different scenarios, analysis of the interrelationships and, as a result, the identification of weak points.

The areas of application are as diverse as the possibilities: no matter if the effects of sales slumps in the finance environment are shown, or if the sales department is preparing the best chances for closing deals, or if in the logistics department the supply chains are optimized – there are so many examples of how planning can be used on a new level.

A glance into the crystal ball of present times reveals reliable information based on real and well-founded data.

Author: Sabine Rudolf
Image: © pixabay