Return on modeling effort
Return on modeling effort (ROME) is the benefit resulting from a (supplementary) effort to improve a model.[1]
Purpose
In engineering, modeling always serves a particular goal. For example, the lightning protection of aircraft can be modeled as an electrical circuit, in order to predict whether the protection will still work in 30 years, given the ageing of its electrical components. More and more effort can be put in making this model predict reality perfectly. However, this perfection comes at a price: researchers invest time and money in improving the model. As a Return on investment (ROI), the ROME is a metric for the use of further modeling. It may therefore serve as a 'stopping criterion'.[1]
Typically, researchers will pull towards continuing modeling, while management will pull towards stopping modeling. Being explicit about the cost and benefits of continued modeling may help to make informed decisions that are understood by both sides.
Domains
ROME is a metric, which can be evaluated wherever modeling is performed with a business goal. Examples include:
- Modeling a marketing mix to statistically correlate a number of inputs (or independent variables) - such as a marketing campaign - to outcomes (or dependent variables) - such as sales or profits.[2]
- Modeling the links between enterprise actors to make an informed choice on splitting organizations.[3][4]
- Modeling the coupling of an electromagnetic interference to a PCB to reduce its susceptibility by improving the routing of traces.[5]
References
- 1 2 Proper, Erik (2009). "Models that matter; Return on Modelling Effort". erikproper.blogspot.fr. Retrieved 2016-10-06.
- ↑ Thomas, Jerry W. (2006). "Marketing Mix Modeling". Retrieved 2016-10-06.
- ↑ Op 't Land, Martin (2008). Instrument for fast and effective splitting of organizations. TU Delft. ISBN 978-90-71382-37-6.
- ↑ Op 't Land, Martin (2008). Applying Architecture and Ontology to the Splitting and Allying of Enterprises. TU Delft. ISBN 978-90-71382-32-1.
- ↑ Op 't Land, Sjoerd; Mandić, Tvrtko; et al. "Comparison of Field-To-Line Coupling Models: Coupled Transmission Lines Model versus Single-cell Corrected Taylor Model". Proceedings of the 2013 International Symposium on Electromagnetic Compatibility (EMC EUROPE 2013).