System and method of predictive modeling for managing decisions for business enterprises

Abstract

A system and method is provided for predictive modeling of technical and non-technical components in a business infrastructure that implementing one or more business solutions. According to a first aspect of the invention, performance metrics generated from a predictive model of a business infrastructure are translated into enterprise decision or indicators that correspond to the service, performance and financial states of a business enterprise. As a result, non-technical executives can utilize the enterprise decision metrics or indicators to evaluate, support, and monitor the effect of business decisions, for example, with respect to profitability, productivity, growth, and risk of the business. According to a second aspect of the invention, the accuracy of the predictive modeling is improved by mathematically expressing the dynamic characteristics and behavior of each infrastructure component as a result of direct and indirect effects of the infrastructure components impacting one another. Perturbation theory can be used to express direct and indirect effects.