Fuzzy causal maps in business modeling and performance-driven process re-engineering

Abstract

Despite the rhetoric surrounding performance-driven change (PDC), articulated mechanisms that support intelligent reasoning on the effect of the redesign activities to the performance of a business model are still emerging. This paper describes an attempt to build and operate such a reasoning mechanism as a decision support supplement to PDC exercises. Fuzzy Cognitive Maps (FCMs) are employed as the underlying performance modeler in order to simulate the operational efficiency of complex and imprecise functional relationships and quantify the impact of process re-engineering activities to the business model. Preliminary experiments indicate that the proposed hierarchical and dynamic network of interconnected FCMs forms a sound support aid for establishing performance quantifications that supplement the strategic planning and business analysis phases of typical PDC projects.