Simulation Maturity Framework Simul8
Simulation Maturity Framework Simul8
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By reaching higher levels of simulation maturity, organizations
become agile in their ability to plan resourcing, operational
The Benefits of Simulation Maturity
management and capital investment projects, or to respond quickly
to changing business scenarios. And if the covid pandemic has
taught us nothing else, it’s that threats and disruptions can strike at
any time.
$1m per day
Simulation eliminates risk from decision making , meaning that
organizations that use simulation are able to adapt quicker and Fiat Chrysler grew revenue by
$1m per day without
Introducing
maximize their operational performance. This is what makes
simulation such a valuable tool. increasing costs.
the
The transformative benefits of simulation also increase as
organizations evolve their use of simulation to power their digital
twins. This can be achieved through the technologies that are
Framework
organization to reach greater simulation maturity and realize faster meet a 400% increase
ROI. The goal at every stage is to be able to get to value from in demand.
decision-making much faster, but it’s the accuracy, speed,
automation and foresight from simulation that improves
significantly as greater levels of maturity are achieved.
Introducing
ever. there it can be used to support all operational decision making,
introduce real-time and continuous assessment, and later look with
When Gartner introduced its Advanced Analytics Maturity great accuracy into the future to avert crises before they happen.
the
Framework in 2018 (above), it provided an excellent view of the
potential that lay ahead as an organization becomes more
effective at leveraging data. The greatest value, it said, would
Maturity
you what actions are needed to achieve the best possible
outcome.
Framework
Imagine being able to know, with a high degree of certainty, that an Simulation is here
investment in a new plant or technology will give you a measurable
competitive advantage. This is a possibility with the idea of the
“thinking” organization that defines a future reality, combining the
Gartner’s Analytics Maturity Model
accumulated experience of your seasoned experts with the power of
machine learning and AI. And if you think this is science fiction, just
look at the accelerated pace of innovation with the impact of
language learning models like ChatGPT, which have caused leaders
to rethink entire business models.
Introducing It’s important to note that this is not a linear journey. Becoming
proficient at one level puts an organization in position to advance to the The Simul8 Simulation Maturity Framework
the
next level up, but each level provides a different building block needed
for simulation maturity; all must be in play for the optimum
application of simulation and the greatest ROI. An organization that 6 Self-learning, Adaptive Digital Twin
Simulation
can operate effectively across this framework, with all aspects working Maximize my process performance for me
in harmony, will discover exponential value from simulation.
Maturity
In the following pages we will explain exactly what to expect
Heads up on a crisis before it happens so you can prevent it
at each level. It will provide benchmarking for any
organization to understand its current maturity in the
3 Operational Planning
Dynamic simulation based forecasting
Level One
a one-off simulation designed to answer a specific question.
Stakeholders should come away from these experiences with their eyes
Perhaps they need to validate a capital investment. It could be to set up
One Off
opened to the huge potential and value that simulation offers. They will
a new process that does not yet exist. It could be to better understand a see the accuracy of its process replication, the robustness of its
current process and explore ways of tweaking and improving it. outcomes, its easy explanability with visual aids, as well as its agility and
• What is happening? This will be the start of their simulation journey. The organization builds
• Why is it happening? on these one-off successes by taking on and answering more and more
• What will happen? process validation questions through simulation. It begins to
• What is the optimal solution to select? fundamentally change the way in which all decisions are made. As more
people within the organization hear about the benefits of using
The project group will replicate a current status and then facilitate simulation, they too will want to try it out, so the demand grows.
experimentation by simulating a variety of scenarios to uncover the
optimum course of action. This all happens in the safety of a digital At this stage, it’s important to expand the simulation team as early as
space before anything is implemented in the real world, and at minimal possible so that it has the capacity to maintain this momentum and
cost. Through simulation, they can gather diagnostic analytics and then meet the growing demand. Training more people in simulation building
accurately predict outcomes in order to make evidence-based is key, as well as engaging more people in how to use it to make
recommendations. decisions.
The Simul8 Simulation Maturity Framework | 6
Level overview
People
A champion will be the early advocate for simulation within an against the business value that they bring to make the ROI as clear as
organization. It is their job to introduce the technology, processes and possible. Building trust in the process is as important as trust in the
approach, and get buy-in . Typically, they will be process improvement people and technology, so projects need to be well organized with
or data analytics specialists. Ideally you will have a champion that is clear working guidelines.
1 effective at delivering on the technical requirements of simulation
building and can lead on architecturing solutions as well as developing
Technology
technical talent and skills. They will be a center point to build a team
around. Another champion could lead at engaging process owners and It’s essential to focus on arriving at a solution, not on building the
senior decision makers, working across teams and driving cultural ‘perfect’ simulation. In other words, the simulation only needs to be built
change in the business. They will need to be astute at communicating as far as needed to reveal a solution. This is important in demonstrating
the speed and agility of simulation. Creating positive user experience is a
Level One
the business benefits from all simulation projects. These champions
will need to train more people in delivering both the technical and soft key - again, for building trust among stakeholders. Invest early in training
teams to be able to quickly build good user interfaces to overlay a
One Off
skills of simulation projects in order to start growing a full simulation
team as the demand increases. simulation. This will deliver on two fronts. First, it will facilitate rapid
experimentation by allowing users to easily tweak the inputs and see the
Analysis Process
results of alternative actions. Secondly, it will make presenting the
results a much more engaging experience when reporting to senior
management, which will be essential for their buy-in. This visuality is a
Setting roles and responsibilities for all people involved in a simulation benefit that is unique to simulation, so use it as your superpower.
project must be laid out early, letting all collaborators know what is
expected of them. Establishing how to record results and share
information, schedules, and timelines also provides structure to
simulation projects. Simulation must be delivered with the same agility “The simulation model gave us a view of our
and pace that the organization needs to make decisions at, so the production facility that we just hadn’t seen
processes must match. The recommendations of simulation projects before, identifying the easy wins in
must always be mapped optimization that are also cost saving.“
Arnar Þór Ingason
Device Operations Engineer at Controlant
Level Two
and maintain high levels of trust. This means clearly defined practices,
The demand for simulation within the organization is very high at this workflows and guidelines, and consistency of delivery.
point, so it is essential to have simulation teams equipped and big
Every enough to handle this demand. When you consider the multitude of
different operational processes that occur every day, every single one of
Simulated
senior leaders to make sure that every decision has been simulated.
Level Two required will depend on the size and type of organization.
Every Process
Version control and standardization must be adhered to in order to be
Change
practices, workflows and guidelines, and good organization of data and
shareable data sources. This will be determined at C-suite-level, since
Simulated
simulation is now a key part of strategic decision making and planning.
Technology
Since simulation will be used so frequently, it is during this phase of
maturity that the simulation team will begin to build their own solution.
They will have a variety of components for repeated use so that new
simulations can be built even quicker where there are crossovers with
past or similar simulations. The simulation software is feature-rich and
capable of refining model building to even greater accuracy. Keeping up
to date with features as the software continues to evolve will be an
important part of staff training.
Level Three
the quarter and need to be gradually integrated into a process. Perhaps
The key question that is associated with this level of simulation maturity a new service line has a launch date and resourcing will need to be split
is: what is the optimal action to take? These simulations are capable during the build up in order to support the launch while maintaining
People
Simulation architects now have greater maintenance responsibility as
the simulations are living alongside real-world processes at all times.
Decision makers across the organization have access to the interface at “A project that I had previously spent three
all times. months on took me less than 10 minutes to
3 build.“
Process Ron Movilla, Quality Assurance Officer at Hamilton Health
These simulations require ongoing management, traceability, updates
and back-ups. The simulation team will be required to ensure version
Level Three control when making any changes. Change management is essential
in making sure that the simulation tool is adopted and embedded to
Operational
the extent that it completely changes the way in which all decisions
are made.
Planning Technology
The simulation will have been completely tailored to the organization’s
needs. It has been built to use on a continuous basis with core
components that are adaptable to cater for any possible use case within
an organization’s operational needs. The simulation team are more like
simulation architects now, as opposed to the simulation engineers that
were required to run earlier projects. They will be creating bespoke
simulations with far more elaborate interfaces` that make it easier for
users to directly play with and change the simulations to meet their
everyday, operational needs.
Level Four
organization, users will be able to see the immediate impact on the simulation users are able to interpret the information correctly and are
bottom line as the data is refreshed. ready to accept and implement its recommendations. This is especially
the case if the recommendations go against a ‘gut feeling’. Perhaps
Real Time Digital These simulations often work in conjunction with a digital twin. This
is where simulations will be used to supercharge a digital twin with
there is an element of ‘well, we’ve always done it this way’, and staff are
reluctant to action something that feels counterintuitive.
Twin the capability for fully digitized testing and verification of changes to
a process - asking ‘what if? questions - in a virtual environment. To
be in position to do this, the organization is already well established
In our experience, the ‘gut feeling’ of the most experienced decision
makers is usually extremely accurate. This remains invaluable to every
organization, especially when building simulations in the first place.
in maintaining sophisticated data-led approaches in all aspects of its However, simulation is now there to ensure continuity and consistency
operational management. in accurate decision making. Beyond that, it can account for far wider
conditions than is possible for even the most experienced individual
Decisions can be made on a continuous basis, hour by hour, or to see. Being linked into the full operational data set available to an
even second by second. The simulation is now helpful in a real time organization, simulation will provide access to the complete picture of
People
A wider group of people have access to simulation at level four. It has
been designed with an interface that is accessible for staff to plug in the
details of their query and receive recommendations quickly and directly.
Model users are the recipients of its reports and expected to follow
4 the recommendations. This means that they require a simple interface
that provides them with just the information they need. Trust in using
the technology must be unconditional in order to reap its full benefits,
especially when the recommendation does not fit previous activity.
Technology
Simulation is now fully integrated into the tech stack, linking into the
organization’s various data systems, such as ERP, Salesforce,
inventory management.
Level Five
costly mistakes altogether. bringing together data sources and determining how they should be
used to best effect. The role of these two technologies is to perform the
Simulation has evolved into a tool that can predict a crisis before it verification and validation of data use and models, meaning that you
Auto Tuning happens. This ‘playing forward’ to test all possible scenarios can be
delivered continuously and run ahead indefinitely, but most commonly
are left with an even more robust simulation and lighter maintenance
burden.
Performance it is used to look at the next few months to tie in with typical planning
initiatives. The questions being asked of simulation at this point are:
what don’t I know? And what is the optimal corrective action I can take?
Being able to continue operations under the most challenging of
circumstances is dependent on being agile and being able to take the
appropriate remedial action as early as possible. Just think of what
With this advanced level of foresight, simulation offers happened during the covid crisis. While most organizations won’t use
recommendations for adaptations that can preemptively auto-tune simulation to predict global pandemics (although it is used in this way),
performance. It provides organizational management with a tool it will be a tool to provide the insights and foresight needed for essential
to prevent worst case scenarios from ever occurring, or provide contingency planning. It will be able to cater for a multitude of resource
the recommendations needed to work towards meeting best case and capacity issues that might occur.
Level Six
Running 1,000s of simulations in quick succession, or even
simultaneously, allows an organization to create a playbook that offers
recommendations of what to do in all potential scenarios. In this way,
Adaptive Simulation is now helping to create whole strategies, not just solving
problems.
Digital Twin Organizations in level six of the maturity framework are slick at letting
the technology do the hard work for them in defining and then
optimizing processes. This is where they can really lean into adopting
modern technologies within their operational practices, and we are
talking about the technology of today. Machine learning, process
mining, generative AI, quantum computing - these are all technologies
that are already hitting mainstream utility in various forms. And they
are all ways of powering up your simulation engine to make it more
robust, accurate and helpful.
Maturity in exploration of how using digital twins and having the Simulation
Maturity Framework as a roadmap, helped guide these
Action
organizations to not just envision but actualize a future marked by
informed decision-making and operational resilience.