Simulation Helps Maxager Shorten Its Sales Cycle

Srinagesh Gavirneni (), Douglas J. Morrice () and Peter Mullarkey ()
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Srinagesh Gavirneni: Operations and Decision Technologies, Kelley School of Business, Indiana University, Bloomington, Indiana 47405
Douglas J. Morrice: McCombs School of Business, University of Texas at Austin, Austin, Texas 78712
Peter Mullarkey: NetQoS, Inc., 6504 Bridge Point Parkway, Suite 501, Austin, Texas 78730

Interfaces, 2004, vol. 34, issue 2, 87-96

Abstract: We developed a simulation approach to reduce the time and cost of selling the Maxager system, a manufacturing decision-support system consisting of both hardware and software. To enable customers to understand the impact Maxager could have on their profitability, we used to perform pilot studies in which we installed our hardware, trained their people, collected data, and performed the analysis. These pilot studies lasted for three to six months and cost hundreds of thousands of dollars. To save time and money, we simulated Maxager’s data-collection systems and used the Maxager software to analyze the data. This enabled us, with some aggregate information provided by the prospective customers, to illustrate the impact Maxager could have on their systems using simulated data of their products, processes, and operating procedures without having to install our hardware. As a result, (1) we reduced sales cycles from over 12 months long to less than six months long, and (2) we reduced the cost of a sales cycle by approximately $50,000 to $100,000. We achieved these results without a drop in the success rate of the sales process.

Keywords: simulation: applications; decision analysis: systems (search for similar items in EconPapers)
Date: 2004
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