The Optimization Model of Decision Making in Modern Business Systems

Abstract

Purpose

The purpose of the chapter is to study possible approaches to determining the notion “business system” and to describe possible optimization models of decision-making in modern business systems from the position of these approaches.

Methodology

The methodology of the research includes systemic analysis, discrete event approach in simulation modeling, modeling of complex hierarchical system on the basis of turning criteria into a generalized indicator with the help of functional Kolmogorov mean, and mathematical tools of the Theory of games.

Results

The authors study possible variants of modeling of business systems from the position of various approaches: commercial, practice-oriented, and organizational. Within the commercial approach to defining the notion “business system,” the discrete event approach to simulation modeling on the basis of Markov chains was compiled. A model of starting a certain new commodity in sales was compiled for determining the long-term strategy in the market. Within the practice-oriented approach, evaluation of effectiveness of personal as a component of business system is modeled. Within the organizational approach, two competing companies are modeled on the basis of the positional game.

Recommendations

Finding the optimization model of decision-making in modern business systems is impossible without of the system approach – that is, without considering possible definitions of the term “business system” and compiling the corresponding models. Only the systemic approach will allow for objective and comprehensive modeling of behavior of business systems. The offered methodologies will allow modeling evaluation of the current state of business system, changes of the system in dynamics, and its relations with other business systems.

Citation

Tarasova, I.A., Shchukina, N.A., Avdeyuk, O.A. and Nekrasova, V.V. (2019), "The Optimization Model of Decision Making in Modern Business Systems", Popkova, E.G. and Chesnokova, A.V. (Ed.) The Leading Practice of Decision Making in Modern Business Systems, Emerald Publishing Limited, Leeds, pp. 131-142. https://doi.org/10.1108/978-1-83867-475-520191015