Butterfly Wing Revenue

About Butterfly Wing

The butterfly effect is the sensitive dependence on initial conditions in which a small change in one state of a system results in large differences in a later state. The term butterfly effect is derived from the metaphorical example of a tornado being influenced by minor perturbations such as a distant butterfly flapping its wings several weeks earlier. Usually butterfly effect takes place when multiple changes in one set of parameters affect other multiple parameters causing domino effect. There is no generic method for predicting such systems’ behaviour, each case requires a specific procedure. While working with digital advertising services I encountered a similar problem. Multiple content views represent advertising opportunities to be sold to multiple advertisers. This is a classical supply - demand problem when it is strongly desirable to meet all the demand without overproducing supply. Eventually digital advertising adopted a real-time bidding model. That’s like buying commodity goods on eBay, when one needs them at the price available. While the auction model works well for advertisers, as they have significant flexibility in meeting their goals, it doesn't work well for businesses purchasing commodities. The businesses have strict requirements for commodity’s quantity and specification and strict budget. The supply mesh model can solve many problems that beset modern supply chains including overproduction, delays and need for moving supply to and from the distributor's storage facility and carrying large inventories, at the same time increasing their resilience and providing cost reduction for suppliers and buyers.

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