From Simulation to Marketing

Traditional Hydraulic Simulation Simulations for Marketing Physical / Financial Models Conclusions 3

Traditional Approach

Cost focus Measure hydraulic efficiency Situational analysis Capital analysis Performance measurement

Marketing Fundamentals

Pressure = $$$ Assets = Options Hydraulic Model = Risk Management Pipelines = Time machine

Simulation for Marketing

Increase Market Share Satisfy Market Demand Capital and Optionality Risk Management 6

Market Share

Convert "Cost" into Revenue Margin Analysis Revenue Management approach Asset Positioning and Competition Example:

Satisfying Market Demand

Commoditization and Interruptible Speculative facilities Physical based Financial Options Non-traditional approach New Services

Capital and Optionality

Rationalizing efficiency Selection criteria Asset deployment Asset re-deployment 9

Risk Management

Spark Spread Physical / Financial modeling Expanded Cost modeling Real time options 10


Physical modeling capability is critical Physical assets are financial options Detailed physical simulation models are risk management tools. Integration of physical and financial models will expand.

This content is only available via PDF.
You can access this article if you purchase or spend a download.