Models

Models are systems of mathematical equations that hold the expertise and ideas about agent and system behavior. They are at the heart of most of Ventana’s work. Recurring often are models of an enterprise, an industry (a corporation and its competitors), and economies. We also create models of functions such as logistics, production or marketing; data (reconciling conflicting or hidden strategic information); and policy.

Ventana® Enterprise Models focus dynamic resource allocation. They may consider the business functions of a single enterprise in its competitive market, or a portfolio of research or investment opportunities with complex relationships to each other and the overall goal. They are used to optimize the nature and timing of interactions among business initiatives, provide definition for investment and outsourcing policy, identify and protect against brittle market conditions, or help manage conflicts and interdependence among competing projects.

Ventana® Industry Models focus on the dynamics of industry-wide growth and change. They are used by firms to understand strategy, policy makers to understand regulatory effects before they are implemented, suppliers to plan capacity and pricing, consumers to determine their rules of engagement, and investors wishing to influence and profit from industry trends.

Ventana® Logistics and Supply Chain Models focus on distribution network service and costs, including the near- and long-term effects of shortages and overstock. They are used to determine optimal ordering and replenishment policy at each level, evaluate options in logistics discipline and branch procedures, and test system changes from order rules to entire network re-designs before implementation.

Ventana® Market Models focus on the customer response to new or existing product or service offerings, often in the context of competing offerings and substitutes. They segment the ways customers choose among competing options, and the customer behavior and use patterns that shape demand over time. They are used to make design, price, packaging, marketing and advertising decisions, as well as to understand likely future performance and its causes.

Ventana® Policy Models combine elements of all other model types to test likely outcomes of state, regional, national or international policy, considering relevant macroeconomic feedback, industry dynamics, environmental response, and consumer behavior.

Ventana® Production Models focus on the technical and human factors affecting a manufacturing or service delivery process. They are used by managers to find the root cause of throughput and productivity limits, understand and accelerate production learning curves, and determine in advance the likely payoff of process improvement initiatives.

Ventana® Project Models focus on the true drivers of output quality, schedule, and cost. They provide a top-down view of major project components, estimating how completion speed and error generation are affected by the availability and quality of labor and prerequisite work. They identify program problems by technical sub-system. They help optimize schedule and budget in the face of shifting deadlines, funding, and output requirements.