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The Provisdom Decision Platform may be used over the entire range of corporate decisions, ultimately providing a unified solution connecting information to the True Shareholder Valueof decisions. The Provisdom Decision Platformcan handle any types of choices, uncertainties, and payoffs. This encompasses all real business decisions, allowing the platform to take part in every decision of significant value made by a corporation, regardless of industry, function, or management level (Note: “significant” means that the resources required to analyze and create a strategy are justified by the True Shareholder Value created). Figure 1 below indicates the scope of the corporate applications for the platform. Figure 1: Horizontal and vertical integration enabled by the Provisdom Decision Platform. The best problem areas to begin with are those in which the most value will be created. Look for applications that have big dollar payoffs, a highly-repeated structure, or elements that make other methodologies’ approximations and assumptions result in strategies that are furthest from maximizing True Shareholder Value: 1. Big Dollar Impact – Payoffs are measured in the many millions or even billions of dollars. High-impact decision examples include large-scale capital expenditures, data center management, drug development, oil exploration, and M&A. 2. Highly Repeated Structure – Even if each decision typically has relatively small value, the cumulative effect of repeated decisions can be extremely large. Credit approval, insurance claims, and DRAM purchasing are examples. 3. Other Methodologies at Their Worst – Example elements that give other methodologies trouble include uncertainty, Market risk, scenarios, incomplete information, sustainability factors, future choices, interrelated complexities, many decisions and uncertainties, and large time scales. Eventually, the Provisdom Decision Platformshould be used for all decisions that are worthwhile and technically practical. If the decision is very low value (e.g., when to grab a cup a coffee), a mental model will suffice. Some business decisions may require or benefit from a specialized algorithm that is focused on a specific part of the real business problem and ignores other aspects, like a truck routing or realtime pricing algorithm. Sometimes, these algorithms are best used from within a higher-level strategic model built using the platform.
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