closeOIS willStage I : Initial OIS clients: They  needs to be carefully selected by Optilogic and the MMM vendor because OIS, compared to the current state of affairs, will be:

• a startling departure from current supply chain and finance applications
• in need of business process designs between client and vendors
• in need of debugging

Factors to consider in selecting these initial clients include:

• drawn from either Optilogic or MMM vendors’ current clients, obviously
• familiarity with the clients CFO/CEO
• clients have strong CFO/CEO
• possible client of both Optilogic and MMM vendor??
• deciding what are the appropriate SIC code(s)
• deciding, as an incentive for these essential OIS “start ups,” to discount the cost of creating the base-line model and associated response functions.
•  and others…

Stage II: OIS Business Case: Given the issues raised in Stage I have been resolved, the OIS business case is now very straight forward: i) Optilogic creates an MILP model of the firm’s last year income statement. Then ii) that model’s assumption of a fixed forecast is relaxed. Relaxing this assumption is accomplished by populating the model with response functions developed by a marketing mix model (MMM). In conclusion, iii) the resulting optimization demonstrates how much profit the firm forfeited last year by not using OIS.

OIS business case works: Finally, a simple proof of concept OIS business case model was created for the previous year’s income statement of an iconic global gift company.The results were astonishing: the firm had left 50-150% of last year’s profit on the table.  See the article, OIS Works for the details.