Value driven integrated build-to-buy decision analysis system and method

• US 20060265276A1
• Filed: 07/26/2006
• Published: 11/23/2006
• Est. Priority Date: 11/03/2000
• Status: Active Grant

• Current Assignee: Mydecide Incorporated
• Original Assignee: Mydecide Incorporated
• Inventors: Belkora, Jeffrey Karim, Amos, John David, Korver, Clinton Douglas, Weller, Katherine Ann
• Granted Patent: US 7,797,185 B2
• Time in Patent Office: Days
• US Class Current: 705/10
• CPC Class Codes: G06Q 10/06315 Needs-based resource requirements planning or analysis
• CPC Class Codes: G06Q 10/0635 Risk analysis of enterprise or organisation activities
• CPC Class Codes: G06Q 10/101 Collaborative creation, e.g. joint development of products or services
• CPC Class Codes: G06Q 30/0201 Market modelling; Market analysis; Collecting market data
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 30/0605 Supply or demand aggregation
• CPC Class Codes: G06Q 30/0633 Lists, e.g. purchase orders, compilation or processing
• CPC Class Codes: G06Q 50/188 Electronic negotiation

Abstract

A value-driven build-to-buy decision analysis system and method is provided that addresses and integrates the system analysis for multiple parts of the build-to-buy business cycle. The system and method of the present invention includes a demand component and a supply component. The demand component includes decision analysis components for one or more demand oriented activities in the build-to-buy cycle, such as selling and buying activities. The supply component includes decision analysis components for one or more supply oriented activities in the build-to-buy cycle, such as product creation, product packaging and product pricing activities. Each decision analysis component utilizes values-based object-oriented analytical models.

Claims

1. A computer-implemented decision analysis system that facilitates decision making by integrating a values-based demand component for buyers of a product or service and a values-based supply component for sellers with feedback loops between the components and value optimization algorithms that enable the system to identify beneficial commercial transactions for participating parties, the system comprising:

means for creating a demand component comprising at least one demand-oriented, values-based decision analysis component, the demand component being based on;

i) a set of product or service characteristics and qualities;

ii) a set of product or service demand values associated with a buyer and resulting from the set of product or service characteristics and qualities, and a quantifiable metric associated with each product or service demand value;

iii) a set of buyer demand values associated with the buyer and predetermined by the buyer independent of the product or service characteristics and qualities, and a quantifiable metric associated with each buyer demand value;

iv) a set of demand value tradeoffs showing how the buyer would trade one product or service demand value for another product or service demand value and showing how product or service demand values mathematically relate to one common financial metric;

v) a set of demand information components, each defined in terms of a probability or a probability distribution; and

vi) a set of buyer alternatives that represent at least one of products and services the buyer is capable of purchasing;

means for creating a supply component comprising at least one supply-oriented, values-based decision analysis component, the supply component being based on;

i) a set of product or service supply values associated with a seller and resulting from the set of product or service characteristics and qualities, and a quantifiable metric associated with each product or service supply value;

ii) a set of seller supply values associated with the seller and predetermined by the seller independent of the product or service characteristics and qualities, and a quantifiable metric associated with each seller supply value;

iii) a set of supply value tradeoffs showing how the seller would trade one product or service supply value for another product or service supply value and showing how product or service supply values mathematically relate to one common financial metric;

iv) a set of seller information components, each defined in terms of a probability or a probability distribution; and

v) a set of seller alternatives that represent at least one of products and services the seller is capable of selling;

means for combining the product or service demand values, the buyer demand values, the product or service supply values, the seller supply values, the demand value tradeoffs, the supply value tradeoffs, the buyer information components and the seller information components to evaluate risk and return characteristics of the buyer alternatives and the seller alternatives; and

means for performing sensitivity analysis to show how the risk and return characteristics of the buyer alternatives and the seller alternatives change as the product or service demand values, the product or service supply values, the demand value tradeoffs, the supply value tradeoffs, the buyer information components and the seller information components change.

2. The system of claim 1, wherein the at least one demand-oriented, values-based decision analysis component, and the at least one supply-oriented, values-based decision analysis component each comprises at least one object-oriented analytical model that shows both graphically and mathematically how the demand values, the supply values, the buyer information components and the seller information components are related in order to calculate the demand value tradeoffs, the supply value tradeoffs, risk and return.

3. The system of claim 2, wherein each object-oriented analytical model collects user information while assisting users in a commercial decision making process and is able to share the user information with other object-oriented analytical models, wherein user information collected includes at least value assessments, value tradeoffs, probability assessments, alternatives considered, and alternatives selected.

4. The system of claim 1, wherein the at least one demand-oriented, values-based decision analysis component comprises a buy component for assisting a customer in choosing a product among a plurality of products.

5. The system of claim 4, wherein the buy component comprises an object-oriented analytical model.

6. The system of claim 1, wherein the at least one supply-oriented, values-based decision analysis component comprises a sell component for assisting a user in determining how to offer already built products to customers.

7. The system of claim 6, wherein the sell component comprises an object-oriented analytical model.

8. The system of claim 1, wherein the at least one supply-oriented, values-based decision analysis component comprises a build component for assisting a user in determining products to build.

9. The system of claim 10, wherein the build component comprises an object-oriented analytical model.

10. The system of claim 1, wherein the feedback loops are created so that demand information gathered by the demand component in the process of helping customers make purchase decisions is utilized by the supply component, and supply information gathered by the supply component in the process of helping providers make or build products or services, or offer decisions is utilized by the demand component.

11. The system of claim 1, wherein the at least one demand-oriented, values-based decision analysis component comprises a buy component and a sell component.

12. A computer-implemented decision analysis system that helps users make values-based decisions by leading them through a set of tools and a process to clarify and quantify their values, search for and identify the most attractive alternatives given their values, search for and identify the most relevant information given both their values and alternatives, and integrate all of these elements to reach testable, documented conclusions, and facilitates decision making by integrating a values-based demand component for buyers of a product or service and a values-based supply component for sellers with feedback loops between the components and value optimization algorithms that enable the system to identify beneficial commercial transactions for participating parties, the system comprising:

means for creating a demand component comprising at least one demand-oriented, values-based decision analysis component, the demand component being based on;

i) a set of product or service characteristics and qualities;

ii) a set of specific buyer demand values that quantitatively measure a buyer'"'"'s relative preference for each product or service characteristic and quality;

iii) a set of general buyer demand values, predetermined by the buyer independent of the product or service characteristics and qualities, that quantitatively measure a buyer'"'"'s preferences for making decisions, including risk preference, time value of money, preferred way to process information, and personality type;

iv) a set of buyer value tradeoffs showing how the buyer would trade one demand value for another demand value and showing how all demand values mathematically relate to one common financial metric;

v) a set of buyer-specific information components, representing a buyer'"'"'s unique beliefs about a product or service, codified in terms of a probability or a probability distribution; and

vi) a set of general information demand components gathered from across all similar values-based demand components, prioritized by similarity of the buyer'"'"'s specific values with the values of other buyers, creating values-based demand components;

vii) a set of general information supply components gathered from across all values-based supply components created by sellers, prioritized by the buyer'"'"'s specific values and the similarity of the products and services the buyer has identified as alternatives with the products and services the seller is selling;

viii) a set of buyer alternatives that represent at least one of products and services the buyer is capable of purchasing;

means for creating a supply component comprising at least one supply-oriented, values-based decision analysis component, the supply component being based on;

i) the set of product or service characteristics and qualities;

ii) a set of specific seller supply values that quantitatively measure a seller'"'"'s relative preference for each product or service characteristic and quality;

iii) a set of general seller supply values, predetermined by the seller independent of the product or service characteristics and qualities, that quantitatively measure a seller'"'"'s preferences for making decisions, including risk preference, time value of money, preferred way to process information, and personality type;

iv) a set of seller value tradeoffs showing how the seller would trade one supply value for another supply value and showing how supply values mathematically relate to one common financial metric;

v) a set of seller-specific information components, representing a seller'"'"'s unique beliefs about a product or service, codified in terms of a probability or a probability distribution; and

vi) a set of general information supply components gathered from across all similar values-based supply components, prioritized by similarity of the seller'"'"'s specific values with the values of other sellers, creating values-based supply components;

vii) a set of general information demand components gathered from across all values-based demand components created by buyers, prioritized by the seller'"'"'s specific values with the values and the similarity of the products and services the seller is offering with the products and services the buyer is considering as alternatives;

viii) a set of seller alternatives that represent at least one of products and services the seller is capable of selling;

means for combining the specific and general buyer demand values, the specific and general seller supply values, the seller supply values, the demand value tradeoffs, the supply value tradeoffs, the buyer information components and the seller information components to evaluate risk and return characteristics of the buyer alternatives and the seller alternatives; and

means for performing sensitivity analysis to show how the risk and return characteristics of the buyer alternatives and the seller alternatives change as the demand values, the supply values, the demand value tradeoffs, the supply value tradeoffs, the buyer information components and the seller information components change.

13. The system of claim 12, wherein the at least one demand-oriented, values-based decision analysis component, and the at least one supply-oriented, values-based decision analysis component each comprises at least one object-oriented analytical model that shows both graphically and mathematically how the demand values, the supply values, the buyer information components and the seller information components are related in order to calculate the demand value tradeoffs, the supply value tradeoffs, risk and return.

14. The system of claim 13, wherein each object-oriented analytical model collects user information while assisting users in a commercial decision making process and is able to share the user information with other object-oriented analytical models, wherein user information collected includes at least value assessments, value tradeoffs, probability assessments, alternatives considered, and alternatives selected.

15. The system of claim 12, wherein the at least one demand-oriented, values-based decision analysis component comprises a buy component for assisting a customer in choosing a product among a plurality of products.

16. The system of claim 15, wherein the buy component comprises an object-oriented analytical model.

17. The system of claim 12, wherein the at least one supply-oriented, values-based decision analysis component comprises a sell component for assisting a user in determining how to offer already built products to customers.

18. The system of claim 17, wherein the sell component comprises an object-oriented analytical model.

19. The system of claim 12, wherein the at least one supply-oriented, values-based decision analysis component comprises a build component for assisting a user in determining products to build.

20. The system of claim 19, wherein the build component comprises an object-oriented analytical model.

21. The system of claim 12, wherein the feedback loops are created so that demand information gathered by the demand component in the process of helping customers make purchase decisions is utilized by the supply component, and supply information gathered by the supply component in the process of helping providers make, or build products or services, or offer decisions is utilized by the demand component.

22. The system of claim 12, wherein the at least one demand-oriented, values-based decision analysis component comprises a buy component and a sell component.