Scenario Planning solutions
The Challenge:Your organisation will need to cope with unexpected changes, such as threats from new competitors or new technology. To stay on top of their game, the business needs to be able to run multiple scenarios to assess the impact of changes and develop contingency plans.
The Solution:Financial Driver, an easy-to-use Cloud-based software application, makes it possible for your organisation to build models of how the business operates, which can then be changed and compared to allow them to better anticipate the future.
These scenarios or models can look at the relationships between resources, the amount of work those resources support, and the anticipated outcomes that would be generated.
- For example, sales revenue is the product of marketing, lead generation, sales calls, customer references and signing contracts.
- Similarly, production costs are the result of buying raw materials, fabricating them into products, packing and shipping them to customers.
Financial Driver allows you an unlimited number of versions. These are typically used for actual, budget and forecast versions of any data, but they can also be used for any number of different scenarios.
Let's say senior management want to better understand the impact of a rise in energy prices. All you do is create a new scenario – e.g. 'Higher Energy Price' and using Financial Driver's Data management capability you can copy the data from actual (or budget, forecast or a combination of all three) into the new version. You can even uplift numbers during the copy process.
If energy price was set up as a global variable, it can now be changed in the 'Higher Energy Price' version, which will then be used to re-evaluate all the data in that version but at the new energy rate.
This exercise can now be repeated but with another new version called 'Lower Energy Price', only this time using a lower energy cost. The two versions can now be compared 'side-by-side' in a report.
The Results:By continually evaluating different business scenarios, management can be better prepared for an uncertain future. This allows them to make changes early when needed.
Share your issues and contact us today and let's see if together we can find ways to help you plan simply and easily for various scenarios.