The Problem With Cost Models
It’s difficult to completely understand and trust a cost model and all of its thousands of inputs.
Cost modeling tools often suffer from the black box syndrome.
There are various reasons, including:
- The tools are complex and error-prone.
- The formulas are complicated and difficult to understand.
- The staff providing the inputs may not completely understand the model.
- The modeler may not completely understand the inputs or their providence.
The Business Consequences
As a result, cost models are often:
Therefore managers may not feel accountable for the outcomes.
RuleFour is an innovative approach to cost modelling software that is accessible, repeatable, transparent and understandable.Learn more about the RuleFour solution.