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What is business modeling?
The Business modeling method is a technique to
model business processes. Business models provide ways of expressing business processes
or strategies in terms of business activities and collaborative
behavior so we can better understand the business process and the
participants in the process. Models are helpful for documenting,
comprehending and communicating complexity. By documenting business processes from various
perspectives, business models help managers understand their
environment.
Business Simulation
has grown from operations research
in the 1950s. With the arrival of increasingly cheap and powerful
computers, and increasingly user-friendly software, business modeling
techniques now allow also non-technical managers to try out various
options or scenario's to assist in the decision-making process.
Another factor
that has contributed to the increasing usage of the business modeling
method,
is the increasing pace of change in business. There is not enough time to
try-out new products in reality,
and correcting mistakes, once they have occurred, is often extremely
costly.
Common uses of business modeling and simulation:
- Financial Planning,
quantifying the impact of business decisions on balance sheet and P&L.
- Risk Management, determining,
measuring and managing the balance between profitability and certain types
of risks.
- Forecasting, analyzing
historical data and using that to predict future scenario's and trends.
- Business Process Modeling,
mapping processes, tasks and process steps in a visual representation to
the resources required.
Book: Manuel Laguna, Johan Marklund - Business Process Modeling,
Simulation, and Design - 
Book: Bernard P. Zeigler - Theory of Modeling and Simulation -
Compare also:
Game Theory |
Operations Research |
Enterprise
Architecture |
Value Stream Mapping
More management models
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