Predictive means we know all the drivers that influence an outcome and can monitor them all. Systems are very complex, and the permutation is mostly too many and far too random to do any predictive analysis. If this were the case, everyone would predict the stock market and be billionaires. Extrapolating lines and seeing patterns is no real indication of predicting the future because the variables will invariably change over time. We have to assign the probability of the outcome to each simulation.
Simulation can prepare us for decision making; we can preprocess a particular situation and have our answer ready.
EFFECTIVE IS THE OUTCOME DERIVED IN THE TIME BETWEEN A SITUATION HAPPENING, A QUESTION ASKED, DECISION MADE AND ACTED UPON FOR A PLANNED RESULTS IN A NON DISCRETE ENVIRONMENT.
Any advantage in any of these sub-tasks will lead to a competitive advantage. Simulation is being able to optimize some of these sub-phases that make up the EFFECTIVE process. Simulation can help prep up for the decision making part. In simulated situations, a business can act faster than the competition.
Stephen Choo Quan
Thanks for reading and sharing ❤
