Algorithmic business – an illustration
As Gartner explained, Algorithmic business involves the industrialized use of complex mathematical algorithms pivotal to driving improved business decisions or process automation for competitive differentiation.
The building blocks of any system following algorithmic business logic contain input, output, and a feedback loop. Input, a system using Decision tree, Fuzzy logic, Excel, SAS, SAP, Tibco Software, MathWorks, or Ayata is analyzed by an algorithmic function driven by the feedback loop and based on the analysis the output function provides. Depending on the output system, the application changes the resulting output in forms, such as price, inventory details, patient's statistics, and others. The following model shows a high-level understanding of the algorithmic business approach:
To better illustrate this practice, let's take the example of Amazon.com. Amazon has a recommendation engine that gives suggestions to online buyers...
