Unique modeler identifies business decisions with the greatest financial impact
By Staff -- Manufacturing Business Technology, 4/1/2007 6:00:00 AM
River Logic's Enterprise Optimizer (EO) enables companies to arrive at smart decisions by making the financial impact of variable choices considerably more self-evident.
The ability lies in the application's modeling engine that, once the business model is built and loaded, reveals the costs and benefits of strategic decisions. It also builds road maps for better aligning operational activities and processes to product mix, capital investments, mergers & acquisitions, pricing and margins, and opportunity analysis.
“Enterprise Optimizer helps businesses and consulting firms capture the best decision with the most impact on the financial performance of the organization,” says Carlos Centurion, VP of marketing. “It allows selecting metrics and running scenarios around them. If you select a process, it will optimize all activities within the process to arrive at the best return.”
A highly graphical modeler based on object-oriented technology, River Logic EO is driven by mathematical algorithms. Users can easily alter graphical representations as needed, says Stephen Franks, Ph.D., VP of business development. “Nothing else out there can model the business from top to bottom in consideration of creating the most reasonable plan,” he says.
The solution is adaptive to any business environment, though River Logic has the most expertise working with customers in the process, forest products, metals, and oil & gas industries.
One global consumer products manufacturer has made EO integral to its entire corporate decision-making process.
“When I joined the company six years ago, a colleague had done some optimization work with it, and I thought it seemed like an interesting exercise,” says the VP of business development and optimization for the consumer products maker. Today he is asked to run as many as a dozen decision scenarios on a daily basis. Issues range from acquisitions synergies and the effects of divestitures to pricing optimization to boost market share, and sloped demand and supply curves driven by volume, cost, or price—and actual resulting revenue margins.
“We put emphasis on results—and what changes—so we can see the impact of potential decisions,” he says. “It generates a lot of information and is the most advanced version of optimization in a business context that I've ever seen. We have changed multiple million-dollar decisions based on EO. I'd be surprised if we haven't already saved $100 million dollars.”
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