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Driver-based forecast

Managing a volatile and dynamic world in real-time

Driver-based approaches lead to efficiency gains and quality improvements not only in financial planning but also in the preparation of monthly or quarterly forecasts. With Valsight, you can quickly generate forecasts based on value driver models, which describe the main financial and operational factors influencing the business model. Changed market outlooks and new developments can be entered in just a few steps in order to update the forecast. You can then compare these new assumptions and plans with the original ones and, if necessary, take further action. Thus, the forecast meets today’s demands for an adequate control instrument.

Valsight supports the following features for your forecast

Scenario manager:

Valsight’s┬áintuitive scenario manager forms the basis for the efficient creation of regular forecasts. Quickly and flexibly enter your assumptions and expectations for the relevant factors influencing your business model.
The impact of the different updated measures and short-term changes in key value drivers is then evaluated and, if necessary, adjusted in management meetings.
The assumptions and premises, that are active in a certain forecast scenario are easy to understand and can always be adapted on short notice,
Workflow:

With the help of integrated workflows, Valsight enables you to easily create company and group-wide forecasts. Revenue and profit predictions are easy to aggregate along the company hierarchy and can then be merged into a combined forecast. This promotes the cooperation between the different organizational units as well as overall transparency.
Integration:

Efficient forecast processes take information from various information systems into account. An updated revenue pipeline from the customer relationship management (CRM) system can, for example, be communicated automatically.
If your company already uses predictive analytics algorithms to forecast individual metrics (such as sales volume), simply integrate those values into the driver tree, which the forecast is based upon. The dependent drivers and KPIs (e.g. sales) are then derived automatically

Benefit from driver-based forecasts in Valsight:

  • with the use of value driver models, you can easily steer the focus towards the most important KPIs
  • the reduced complexity lets you prepare forecasts with a higher quality
  • the values for relevant drivers can be adjusted easily in the scenario manager
  • data form different systems can be integrated automatically
  • the whole forecasting process is facilitated through integrated tools for analysis and visualization
  • simply take adjusted parameters into account and update your forecast accordingly

Reference Story:
AIDA Cruises

Because we are navigating within a complex business model it is important that Valsight enables us to extract relevant information quickly and with high quality from the large amount of data, that we have available.

Marcel Gnoth
Head of Financial Planning and Analysis
AIDA Cruises