Simulation

Simulation in business intelligence and data analytics is like using a computerized crystal ball. It’s a technique where companies use models to mimic or ‘simulate’ real-world processes and systems on a computer. Imagine playing a video game that lets you build and run a city. Just like in the game, where you can see what happens if you build a park or raise taxes, businesses use simulations to test out different scenarios and strategies without the risk of doing it in the real world.

This could mean simulating market conditions to predict how a new product might sell or testing out how changes in production methods could affect efficiency. By plugging different variables into their model and running the simulation, they can see potential outcomes and make decisions that are informed by a sort of virtual trial run.

The beauty of simulation is it lets businesses play out ‘what if’ situations, explore their outcomes, and prepare accordingly. It helps them stay proactive and reduces the guesswork involved in planning for the future. With this tool, companies are better equipped to navigate the unknown, reduce risks, and capitalize on opportunities that could give them an edge in the marketplace.