Iterative Problem Solving

Running the business is fundamentally an iterative problem-solving continuum.

Problems nowadays become more complex, hyperconnected. Iteration improves solutions through a repetitive process of refinement, using successive comparisons to approach an optimal solution. This method is especially useful when models are too complex for direct solutions.

How Iteration Works

-Inductive Procedures: Iteration uses inductive procedures to test and compare different values of controlled variables.

-Successive Improvement: These procedures are iterative, meaning they progress through successively improved solutions. This continues until an optimal solution is achieved or further calculation is deemed unnecessary.

-Stopping Rules: A rational basis for ending the iterative process involves determining when the expected improvement of the solution on the next trial is less than the cost of the trial.

Iterative Methods

-Algorithms: Well-known algorithms like linear, nonlinear, and dynamic programming use iterative procedures based on mathematical theory.

-Simulation and Optimization: Simulation and experimental optimization are iterative procedures that rely primarily on statistical analysis.

-Perturbation: In mathematics, perturbation is a method for solving a problem by comparing it with a similar one for which the solution is known. The process of iteration is one way in which a solution of a perturbed equation can be obtained.

Running the business is fundamentally an iterative problem-solving continuum. The business management should determine why problems happened, how problems escalated, which areas of the organization were affected, and when the problems started; then take an iterative approach to deal with complex problems effectively.