The rapid market acceptance is due to the fact S&OIS scores high on the Bass diffusion model. Specifically:
- Innovators: The S&OIS business case is very straightforward. Specifically,
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- create an S&OIS baseline model of the firm’s income statement from last year,
- relax its assumption of a fixed forecast
- the results will demonstrate how much profit the firm forfeited by not using S&OIS
- To illustrate the business case, a simple proof of concept S&OIS model was created for the previous year’s income statement for Zippo. The results were astonishing: the firm had left 50-150% of last year’s profit on the table. See S&OIS Works for the details.
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- Followers: Once a few S&OIS innovators have success with S&OIS, those successes can be shared with a variety of candidate partners who each have clients and members of their own with whom they can share the successes. They constitute, in effect, a multiplier effect for S&OIS and include:
- Demand Driven Institute: “THE global authority on demand driven education, training, certification and compliance.” Their affiliates are consulting practicioners with clients they have helped install the DDI software.
- Profit Analytics of Excellence (PACE): “The Profitability Analytics Center of Excellence (PACE) is a non-profit community of professionals dedicated to helping organizations make better, more informed decisions through the use of data analytics employing integrated, causal models.
PACE’s members are composed of researchers, practitioners, and consultants who are building analytical models to effectively track cost and revenue drivers and performance measures.
3. Beyond Budgeting Institute: “Beyond Budgeting is a progressive set of leadership principles and management processes proven to free organizations of “command and control” cultures and improve performance.”
4. Marketing Sciences Institute: “MSI bridges leaders in industry and academia to create a unique community that advances the scientific practice of marketing.” They have 40 members from industry who will be very interested in S&OIS as it solves one of Marketing’s most vexatious problems. Specifically, sizing and allocating the S of SG&A most profitably.
5. Institute of Business Forecasting: “IBF started in 1981 with the Journal of Business Forecasting aiming to advance the growth of business forecasting and planning.” It currently has 40,000+ members.