Attention AI

marker Improving Profitability

Improving profitability is of course the goal of any business and the first two steps in that process are to run efficiently and to maintain security, that we have just mentioned. The third step is to improve profitability and while there are many routes to achieve this we look at the basic concept of maintaining resources, attaining more resources than you use. Of course the most basic resource in todays world is cash but resources can come in many shapes and forms. To illustrate with our warehouse example, the primary elements are:

i. Number of staff members
ii. Percentage of warehouse space in use / free
iii. Number of goods in
iv. Number of goods out

Again, a relatively simple environment but a very complex set of possible interactions / possibilities / events. Events can be both profitable or not depending on what other events are happening at the time and what other interactions or states are in effect. For example a large number of goods out can be a negative or a positive event depending on the amount of free space available, the number of staff on duty and more importantly the number of goods also coming in. This complex picture only emerges when the environement is being monitored as a whole. With this information managers can take immediate appropriate action if they are alerted to situations that are becoming unprofitable, in real time, as they happen.