Whether you’re evaluating the performance of a potential new product, the efficiency of your supply chain network, or the possible impact of a new marketing campaign, running a simulation can help you gain vital insights. However, such simulations require significant computing power. Before the arrival of modern-day cloud computing infrastructure, such computing was affordable only for government organizations and big corporations. Not so anymore.
As cloud-based simulations become more and more economical, many organizations are discovering more efficient ways to run their business. Providers of cloud-based simulations not only make computing power more accessible, they also provide enterprise-grade automation, analytics, and security software.
If you’re new to cloud-based simulations, here are some tips to make the most of them:
- Identify your sources of digital data: Many businesses collect information about every customer and business partner, at every stage. If your company does this, it most likely knows more about its suppliers, customers, and processes than it realizes. However, such information might be stored in different repositories, access to which may be restricted to certain departments. To create robust cloud-based simulations, you need to first find all the relevant data and sources of that data are available to bolster the simulation models you want to test.
- Determine where cloud-based simulations can make a big impact: Simulations are dynamic models that can be tailored to suit the products or services you offer, and the unique processes or functions you want to evaluate. Simulations can solve myriad problems such as predicting product and process performance, improving outcomes, and reducing costs. The opportunities are endless. But you need to understand which opportunities are far greater than others.
- Run simulations to quickly understand and react to daily business conditions: Time is of the essence in today’s fast-paced market, and businesses need to react in real-time. Through cloud-based simulations that model different scenarios, companies can reduce time to market, boost efficiencies, and increase revenue.
- Experiment with different business models: Since cloud-based models can simulate complex data-rich scenarios efficiently, they’re well suited to helping companies re-imagine how they run their operations and explore different business models. Doing so could help create a new or hybrid business model that is more efficient and profitable.
There’s no doubt that cloud-based simulations bolster an organization’s capability to make better decisions, become more efficient, and earn a competitive edge. However, companies must be selective about how they deploy their resources and decide what situations to simulate. If you’d like to learn more about this or explore what other companies are doing with cloud-powered simulations, read my article Now You Can Simulate Nearly Anything in this edition of our management journal, Perspectives.