80/20 rule, more like 40/80 rule..

The Pareto principle suggest that with 20% of effort already 80% of the result can be achieved. Translated to business management, it is often reported that 80% of sales come from 20% of clients.

The following case study shows a example flight from Washington to London Heathrow operated by BA:

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Even though the prices shown are undiscounted trip prices and before and yield optimization to fill the plane, the give a rough indication.

In this case, 45% of the passengers (of the none economy classes) will contribute 84% of the revenue.

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This shows that the 80/20 rule can sometimes be more like a 40/80 rule.

This can also be visualized with a stacked bar graph:

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Within Oracle OAC, a dedicated Pareto graph is also available to show the relation between effort and results and the importance of the top contributors. This is definitely one of the patterns that each business should know about and beware of:

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