Flevy Management Insights Q&A

Can MBSE be effectively applied in non-technical sectors such as healthcare or finance, and what are the unique challenges in these fields?

     Joseph Robinson    |    MBSE


This article provides a detailed response to: Can MBSE be effectively applied in non-technical sectors such as healthcare or finance, and what are the unique challenges in these fields? For a comprehensive understanding of MBSE, we also include relevant case studies for further reading and links to MBSE best practice resources.

TLDR MBSE can be effectively applied in healthcare and finance to improve operations and decision-making, despite unique challenges like data sensitivity, regulatory compliance, and the need for adaptable models.

Reading time: 4 minutes

Before we begin, let's review some important management concepts, as they relate to this question.

What does Interdisciplinary Collaboration mean?
What does Regulatory Compliance mean?
What does Dynamic Adaptability mean?


Model-Based Systems Engineering (MBSE) is a methodology that utilizes models to support the requirements, design, analysis, verification, and validation activities associated with the development of complex systems. While traditionally associated with technical fields such as aerospace, defense, and automotive industries, MBSE's principles and practices can indeed be effectively applied to non-technical sectors such as healthcare and finance. However, the application of MBSE in these sectors comes with unique challenges that require careful consideration and adaptation of MBSE methodologies.

MBSE in Healthcare

In the healthcare sector, MBSE can be used to improve patient care processes, enhance the design and implementation of medical devices, and streamline healthcare operations. The application of MBSE in healthcare focuses on creating comprehensive models that represent the complex interactions between various healthcare processes and systems. For example, a model could simulate patient flow through a hospital to identify bottlenecks and optimize resource allocation. However, the unique challenge in healthcare is the critical importance of patient safety and privacy. Any MBSE initiative must rigorously ensure that patient data is protected and that any changes to healthcare processes do not compromise patient care.

Another challenge is the inherently interdisciplinary nature of healthcare, which requires collaboration between clinicians, administrators, and engineers. Effective communication and collaboration across these diverse groups are essential for the successful application of MBSE in healthcare. Additionally, healthcare systems are highly regulated, and any models or changes proposed by MBSE must comply with a complex web of regulations and standards.

Real-world examples of MBSE in healthcare include the development of digital twins for hospitals to optimize operations and the use of simulation models in emergency departments to reduce wait times and improve patient outcomes. These examples demonstrate the potential of MBSE to transform healthcare delivery, but they also highlight the need for careful consideration of the unique challenges of the healthcare sector.

Are you familiar with Flevy? We are you shortcut to immediate value.
Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab

MBSE in Finance

The finance sector can benefit from MBSE by improving the design and operation of financial systems, enhancing risk management, and facilitating regulatory compliance. In finance, MBSE can be used to model complex financial products, analyze risk across different scenarios, and optimize operational processes. For instance, banks can use MBSE to create models of their lending processes to identify risks and inefficiencies and develop strategies to mitigate these risks. However, the unique challenge in finance is the dynamic and volatile nature of financial markets, which requires models to be highly adaptable and capable of quickly incorporating new data and scenarios.

Additionally, the finance sector is characterized by its stringent regulatory environment. Any MBSE approach must ensure that models and processes comply with relevant regulations and standards. This requires a deep understanding of both MBSE methodologies and financial regulations, which can be a significant barrier to the adoption of MBSE in the finance sector.

Examples of MBSE in finance include the use of models to simulate the impact of market changes on investment portfolios and the development of risk management systems that can predict and mitigate financial risks. These applications demonstrate the potential of MBSE to enhance decision-making and risk management in finance, but they also underscore the need for models that can adapt to the rapidly changing financial landscape.

Addressing the Challenges

To effectively apply MBSE in non-technical sectors such as healthcare and finance, organizations must address the unique challenges of these fields. This includes ensuring the protection of sensitive information, facilitating interdisciplinary collaboration, complying with regulations and standards, and developing adaptable models that can respond to dynamic environments. Organizations can overcome these challenges by investing in specialized training for staff, fostering collaboration between different departments, and leveraging advanced modeling tools and technologies that offer flexibility and scalability.

Moreover, organizations should engage with regulatory bodies and standards organizations to ensure that their MBSE practices are in compliance with industry regulations. By actively participating in the development of industry standards, organizations can help shape the future of MBSE in their sector and ensure that the methodology evolves to meet their specific needs.

In conclusion, while the application of MBSE in non-technical sectors such as healthcare and finance presents unique challenges, these can be addressed with careful planning, collaboration, and the use of advanced MBSE tools and methodologies. By doing so, organizations in these sectors can leverage the full potential of MBSE to enhance their operations, improve decision-making, and drive innovation.

Best Practices in MBSE

Here are best practices relevant to MBSE from the Flevy Marketplace. View all our MBSE materials here.

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.

Explore all of our best practices in: MBSE

MBSE Case Studies

For a practical understanding of MBSE, take a look at these case studies.

Model-Based Systems Engineering (MBSE) Advancement for Semiconductors Product Development

Scenario: A semiconductor firm is grappling with the complexity of integrating Model-Based Systems Engineering (MBSE) into its product development lifecycle.

Read Full Case Study

Model-Based Systems Engineering Advancement in Semiconductors

Scenario: The organization is a semiconductor manufacturer facing challenges integrating Model-Based Systems Engineering (MBSE) into its product development lifecycle.

Read Full Case Study

Automotive Firm's Systems Engineering Process Overhaul in Luxury Market

Scenario: The organization is a high-end automotive manufacturer specializing in electric vehicles, facing significant challenges in its Model-Based Systems Engineering (MBSE) approach.

Read Full Case Study

MBSE Transformation for Engineering Firm in High-Tech Electronics

Scenario: The organization is a mid-sized player in the high-tech electronics sector, struggling to integrate Model-Based Systems Engineering (MBSE) into their product development lifecycle.

Read Full Case Study

Automotive Firm's Model-Based Systems Engineering Process in Precision Agriculture

Scenario: The organization specializes in the design and manufacture of advanced sensor systems for precision agriculture vehicles.

Read Full Case Study

Model-Based Systems Engineering for High-Performance Automotive Firm

Scenario: The organization is a high-performance automotive company specializing in electric vehicles, facing challenges integrating Model-Based Systems Engineering (MBSE) into its product development lifecycle.

Read Full Case Study


Explore all Flevy Management Case Studies

Related Questions

Here are our additional questions you may be interested in.

How does MBSE integrate with existing project management methodologies like Agile or Lean Six Sigma?
MBSE integration with Agile and Lean Six Sigma combines structured, model-based insights with flexibility and process optimization, improving project outcomes, efficiency, and adaptability. [Read full explanation]
How is the rise of quantum computing expected to impact the future development and application of MBSE?
Quantum computing promises to revolutionize MBSE by offering Enhanced Simulation and Modeling Capabilities, Improved Optimization and Decision-Making, despite challenges in Integration, Skills, and Security, signaling a transformative future for engineering solutions. [Read full explanation]
How can MBSE help in optimizing the supply chain and logistics operations within an organization?
MBSE improves Supply Chain and Logistics Operations by enhancing visibility, enabling simulation-based optimization, and fostering continuous improvement and innovation, leading to Operational Excellence. [Read full explanation]
How can MBSE be integrated with existing legacy systems without causing significant disruptions?
Integrating MBSE with legacy systems requires Strategic Planning, stakeholder engagement, phased technology integration, robust Data Management, and a commitment to Continuous Improvement to minimize disruptions and enhance system design and operational excellence. [Read full explanation]
What are the common pitfalls in MBSE implementation and how can they be avoided?
Common pitfalls in MBSE implementation include lack of clear objectives, inadequate training, and resistance to change, which can be overcome through Strategic Planning, skills development, and effective Change Management. [Read full explanation]
How does MBSE support the integration and management of customer experience (CX) strategies?
MBSE supports CX strategies by enhancing Strategic Planning, optimizing Operational Excellence, and driving Innovation and Continuous Improvement, leading to better decision-making and outcomes. [Read full explanation]

 
Joseph Robinson, New York

Operational Excellence, Management Consulting

This Q&A article was reviewed by Joseph Robinson. Joseph is the VP of Strategy at Flevy with expertise in Corporate Strategy and Operational Excellence. Prior to Flevy, Joseph worked at the Boston Consulting Group. He also has an MBA from MIT Sloan.

To cite this article, please use:

Source: "Can MBSE be effectively applied in non-technical sectors such as healthcare or finance, and what are the unique challenges in these fields?," Flevy Management Insights, Joseph Robinson, 2025




Flevy is the world's largest knowledge base of best practices.


Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.




Read Customer Testimonials

 
"One of the great discoveries that I have made for my business is the Flevy library of training materials.

As a Lean Transformation Expert, I am always making presentations to clients on a variety of topics: Training, Transformation, Total Productive Maintenance, Culture, Coaching, Tools, Leadership Behavior, etc. Flevy "

– Ed Kemmerling, Senior Lean Transformation Expert at PMG
 
"[Flevy] produces some great work that has been/continues to be of immense help not only to myself, but as I seek to provide professional services to my clients, it gives me a large "tool box" of resources that are critical to provide them with the quality of service and outcomes they are expecting."

– Royston Knowles, Executive with 50+ Years of Board Level Experience
 
"As a small business owner, the resource material available from FlevyPro has proven to be invaluable. The ability to search for material on demand based our project events and client requirements was great for me and proved very beneficial to my clients. Importantly, being able to easily edit and tailor "

– Michael Duff, Managing Director at Change Strategy (UK)
 
"As a young consulting firm, requests for input from clients vary and it's sometimes impossible to provide expert solutions across a broad spectrum of requirements. That was before I discovered Flevy.com.

Through subscription to this invaluable site of a plethora of topics that are key and crucial to consulting, I "

– Nishi Singh, Strategist and MD at NSP Consultants
 
"The wide selection of frameworks is very useful to me as an independent consultant. In fact, it rivals what I had at my disposal at Big 4 Consulting firms in terms of efficacy and organization."

– Julia T., Consulting Firm Owner (Former Manager at Deloitte and Capgemini)
 
"FlevyPro provides business frameworks from many of the global giants in management consulting that allow you to provide best in class solutions for your clients."

– David Harris, Managing Director at Futures Strategy
 
"Flevy is now a part of my business routine. I visit Flevy at least 3 times each month.

Flevy has become my preferred learning source, because what it provides is practical, current, and useful in this era where the business world is being rewritten.

In today's environment where there are so "

– Omar HernĂ¡n Montes Parra, CEO at Quantum SFE
 
"As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value."

– David Coloma, Consulting Area Manager at Cynertia Consulting



Receive our FREE Primer on Lean Management

This 32-page presentation from Operational Excellence Consulting explains the Lean Management philosophy, based on the Toyota Production System (TPS). Learn to eliminate waste.