Cognitus: simulation for strategy and value development

Welcome to Cognitus - and Valculus

For two decades Cognitus has been recognised as a thought leader and innovator in our specialist field of business system dynamics and value-based simulation.

Now, in order to build upon the extensive intellectual property bank that we have created, Cognitus has formed a new vehicle - Valculus Ltd - to concentrate on the specific application of system dynamics to value-based management in business.

From April, 2007 all Cognitus products and services will be available through Valculus. Please visit the Valculus website for full details.

Cognitus = Pure system dynamics (SD). We teach it.

Valculus = SD applied in business strategy and business management. We deliver a wide range of business-orientated SD value solutions.

The case for "joined-up" strategy

Value Cycle Dynamics™ (VCD) brings together three well-established, previously separate, strategic disciplines, System Dynamics, Valuation and Performance Management.

System Dynamics (SD) is a simulation-based discipline that focuses on the structural interdependence of resources (e.g. capital, people, infrastructure, knowledge). SD provides a high-level, physical perspective of potential performance that is consistent across organisations and over time.

Valuation is a discipline that lies “at the crossroads between corporate strategy and finance” (McKinsey). Valuation analysis provides the financial "glue" for strategy evaluation.

Performance Management. The balanced scorecard is the established "gold standard" in strategy development and performance alignment. Simulation brings static scorecards to life, enabling managers to assess the potential impact of investment and operational strategies, across whole organisations and over time.

VCD bridges the gap between detailed, opaque financial analysis and more qualitative strategic methods. By modelling the “real world” of resources, VCD provides a sound framework for strategic and financial planning. VCD is a discipline, a process and a toolset. It is “top down”, progressive, transparent and widely applicable.

Value Cycle Dynamics™ - a new breed of strategy tools and methods for harmonising growth and creating value.

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Support for business since 1991

Established in 1991, Cognitus' clients include blue chip organisations such as BP, GlaxoSmithKline, Scottish Power and BT. We have also provided specialist support to some of the world’s biggest consulting firms, including IBM (PriceWaterhouseCoopers), KPMG and Errnst&Young.

Client feedback

Scottish Power has used VCD modelling over several years to develop, test and communicate its asset investment strategy.

“We have a high level picture of the lifecycle of our key assets. This allows us to analyse many investment scenarios where knowledge of performance and condition of assets may be uncertain, while remaining aware of the global and long-term consequences".

Power Systems Asset Manager

BP Amoco used VCD modelling to develop operational strategies for North Sea oilfields.

“VCD modelling has tremendous value in oilfield asset planning. The high level approach enables senior management to see all the issues, to progressively refine understanding of interdependencies, to learn quickly and without risk, hence to make better informed decisions”.

Section Head at BP’s Research Centre

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