Advanced Business Simulations-Incorporating business and process execution data

Key Performance Indicators (KPIs) and their predictions are widely used by the enterprises for informed decision making. Nevertheless , a very important factor, which is generally overlooked, is that the top level strategic KPIs are actually driven by the operational level business processes. These two domains are, however, mostly segregated and analysed in silos with different Business Intelligence solutions. In this paper, we are proposing an approach for advanced Business Simulations, which converges the two domains by utilising process execution & business data, and concepts from Business Dynamics (BD) and Business Ontologies, to promote better system understanding and detailed KPI predictions. Our approach incorporates the automated creation of Causal Loop Diagrams, thus empowering the analyst to critically examine the complex dependencies hidden in the massive amounts of available enterprise data. We have further evaluated our proposed approach in the context of a retail use-case that involved verification of the automatically generated causal models by a domain expert.

A Data Driven Tool supported CLD Creation Approach

The creation of Causal Loop Diagrams (CLDs) is a major phase in the System Dynamics (SD) life-cycle, since the created CLDs express dependencies and feedback in the system under study, as well as, guide modellers in building meaningful simulation models. The cre-ation of CLDs is still subject to the modeller's domain expertise (mental model) and her ability to abstract the system, because of the strong de-pendency on semantic knowledge. Since the beginning of SD, available system data sources (written and numerical models) have always been sparsely available, very limited and imperfect and thus of little benefit to the whole modelling process. However, in recent years, we have seen an explosion in generated data, especially in all business related domains that are analysed via Business Dynamics (BD). In this paper, we intro-duce a systematic tool supported CLD creation approach, which analyses and utilises available disparate data sources within the business domain. We demonstrate the application of our methodology on a given business use-case and evaluate the resulting CLD. Finally, we propose directions for future research to further push the automation in the CLD creation and increase confidence in the generated CLDs.