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                 Cox Associates: Superior Business Decisions through Better Data Analysis

Business Simulation Modeling

Business simulation models quantify the impacts on net revenues over time of changes in operations, products, and business decisions. Such models incorporate the results from customer behavior prediction models, allowing users to predict and validate the probable behaviors of customers (e.g., choice of providers, usage levels, and "loyalty" and churn in the face of competition). They go beyond predicting customer behavior, however, by simulating market evolution, taking into account likely competitor responses and technology and regulatory impacts as well as customer behaviors.  They address the likely consequences of different management decisions or actions? (For example: customer responses, competitor reactions, employee morale, costs and quality of service, engineering reliability and performance levels)

Cox Associates has, for example, provided a fully integrated model of marketing, engineering, and operations and their financial impacts in new businesses such as the Personal Communications Services (PCS) industry. This model includes high-level models of subscriber purchasing behavior; predicted effects of pricing, advertising, and competition on market share and average revenue per subscriber; and relative costs and performance associated with different network engineering choices and build schedules.

Its impact: It reduces by over 50% the time to create and run financial and strategic scenarios. Improve planning validity and consistency and helps planners to focus on what can be controlled instead of on what has been assumed.