Simulation Modeling – reinvigorating a stagnant market

Untapped opportunities
Estimated at $250 million per year in services and software sales, the simulation modeling industry is not living up to its market potential and, according to our estimates, has seen little or no growth for years. While trade journals and business magazines have published articles on the benefits of simulation modeling, the awareness among business leaders and decision makers is still limited. By some estimates, less than 20 percent of target customers are even aware of simulation. Much fewer have yet to understand and appreciate how to properly apply such complex methodology.

Barriers to adopting simulation at the board level
Without proper education, decision makers will not perceive simulation modeling as an effective tool for making informed business decisions. While we in the industry know that simulation is more than software, it is a concept still foreign to a majority of C-level executives. Few business leaders are using simulation to identify significant potential savings and evaluate concepts prior to investment. While software products have been oversold, the market is filled with casual users. Meanwhile, the majority of companies have not invited simulation experts to demonstrate how they can maximize their returns and reduce risks in strategic business planning.

How to effectively position simulation modeling
Simulation modeling is not just software – it's an engineering discipline. To reinvigorate the industry, we need to re-educate our marketplace so that decision makers perceive simulation as the most comprehensive way to analyze, quantify, validate, and demonstrate the impact of critical decisions. We must also raise awareness of the value of simulation experts. While modern software products reinforce the effectiveness of simulation modeling in operations research, comprehensive supply chain solutions still require the consultation of trained experts.

Initiating a leadership group for the simulation modeling industry
Automation Associates, Inc. has been concerned about this problem for some time. In an effort to address the issue and help find solutions, we will be hosting an informal Simulation Leadership Reception at the 2004 Winter Simulation Conference. As a key player in the simulation modeling industry, we invite you to join us to find a solution and influence the future of our industry.

Simulation Leadership Reception
During the 2004 Winter Simulation Conference
When: Tuesday, December 7, 2004 from 6:00 to 8:00 pm
Where: Washington Hilton and Towers

To RSVP, contact Jill Childers at 858/481-6050 x 101 or email

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