The business of modelling: some anecdotes on modelling in business and story-telling

Abstract

There has been a tremendous increase in the use of computer modelling in business appraisal and decision-making over the last ten years or so. This has been driven in part by the adoption of large spreadsheets for modelling every major financial transaction, and also by the widespread availability of cheap computer power on every desk. This paper draws on the author's experiences in industry and management consulting, and argues that much of this computer modelling activity does not follow what might be termed a ‘scientific’ path. Models as actually used in business may be more usefully thought of as contributing to the ‘storytelling’ within an organisation by which it articulates and justifies its business planning.

Keywords:

• business modelling
• policy
• economic appraisal