Most managers’ works require making predictions. When Hr experts make a decision whom to hire, they are predicting who might be best. When marketing experts select which marketing options to use, they’re guessing where a product or service will sell best. When Venture Capitalists decide whether to finance a start-up, they are predicting if it will be successful. For making these and numerous other business estimations, businesses today are turning more to algorithms, which accomplish step-by-step analytical procedures at amazing speed and level.
Algorithms have an effect on everything we do – involves planning, control, Internet, advertising and marketing, mobile business and textile automation.
So the question remains: Which are some useful algorithms that can help in the business world? Here I’ve put together a little list.
3 Useful Algorithms for Business Management
1) Hungarian algorithm
The Hungarian algorithm is a combinatorial optimization procedure that resolves the assignment problem in polynomial time. It was designed and released in 1955 by Harold Kuhn, who gave the name “Hungarian method” mainly because the algorithm was basically depending on the previous works of two Hungarian mathematicians: Jenő Egerváry and Dénes Kőnig. So what exactly does this algorithm do?
Suppose that your business assigns contractors to fulfill plans. You take a look at your rosters and determine which contractors are ready for a one-month agreement and you run through your available agreements to see which ones are for 1 month long tasks. Since you already know how efficiently every contractor can accomplish every contract, how would you assign contractors to make the best use of the overall effectiveness for that month?
Well, you can learn about the implementation of the Hungarian algorithm to solve this linear assignment problem in this amazing blog article by Dmitri Ivanovich Arkhipov.
2) MeMatch algorithm
Consider identifying your consumers’ 3rd party data by name, phone no, address and other contact details from your customer management databases.
So, how would you effectively match minor modifications on your client’s names and address from your master admin database standard name and address?
How will you create an effective approach that uses different matching conditions to cross match and find your customers?
The MeMatch algorithm matches versions of contact details in both files to generate a file with the matching customer ID. The algorithm allows working with sounds like criteria.
The algorithm conditions are table driven. It considers that the conditions Rank, crit field, in the requirements table shows the precision and strictness of a provided requirements when compared to others.
3) SIMMETHOD Algorithm
How to identify B-I-C companies and predict their performance when a shift in market & Balance Sheet values has invalidated Old industry-barriers, strategies, business models, performance & risk metrics Outdated leadership, management and forecasting skills.
SIMMETHOD™ performance predictive algorithms analyze, calculate and convert 1000’s pieces of data from global businesses in order to create Best Practices Performance Profiles, a competitive intelligence database, Strategy/Execution Performance Predictive Indices and unique leading indicators for every industry in order to enable business executives to receive early warning alerts of threats and opportunities coming from inside and outside their industries.
In conclusion, I only want to add that this list should be considered as an opinion, not a complete list because you will find some other algorithms in fields like Machine Learning, Categorization, Matrix multiplication, etc, which can also be beneficial in Business Management and are not described here.