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Simulation

Agile simulation of financial scenarios

  • higher flexibility
  • transparent and comprehensive
  • fact-based discussions

Create simulations flexibly in Valsight

Achieve better results through quickly and easily simulating different scenarios. Create new scenarios by entering your assumptions regarding the change of value drivers as well as the effects of strategic measures on KPIs.

With Valsight you can create different “what-if” scenarios. By using the scenario manager’s intuitive interface, you can directly enter new insights either derived from your business environment or regarding the development of certain drivers and then immediately include them in the respective scenario. With the possibility of quickly and flexibly creating new scenarios, a bigger spectrum of values can be calculated and analyzed for each KPI.

Furthermore, the simulation of multiple development options makes plans more comprehensible, as assumptions and effects are calculated and presented transparently.

Working with simulations

  • 1After you have built a value driver tree in accordance with your business model and integrated the necessary data, you can start with creating scenarios. In Valsight, scenarios build upon base data, that is extrapolated into the future with the help of assumptions. Base data normally uses the last available actual data or a current forecast, always depending on the use case at hand.
  • 2In the scenario manager, you enter assumptions about the development of key value drivers as well as planned strategic and operative measures. You can do this completely flexible as you can enter the effects for any available line item and on any available data dimension at the same time. The created scenarios are then tested against predefined validation rules for your support. The validation rules ensure that the total of all active assumptions within a scenario is accurate and feasible from a business perspective and that interdependencies between different assumptions are considered.
  • 3The created scenarios can then be discussed in management meetings, and, if necessary, still be adjusted. The simulation of different scenarios can be conducted ad hoc due to the easy handling of the underlying assumptions and the use of in-memory-technology. This way, the financial impact of certain measures and assumptions can be immediately assessed, allowing a real-time steering and decision-making process.
Higher Flexibility

New scenarios can be created and simulated within seconds by changing, activating or deactivating the different underlying assumptions. The creation of new assumptions can be done quickly and flexibly. When creating assumptions, it can always be decided according to the respective situation which level of detail the assumption should contain and on which level it should take effect. These effects can be entered as absolute values or as percentages.

Transparency

In the scenario manager – the core application for creating simulations – you gain a clear overview over the different assumptions and measures, which are active in any scenario. This enables all users to quickly understand how the different scenarios are derived, even if they were not involved in their creation themselves. The content and effects of the different assumptions can be analyzed with the help of multiple visualization options.

Steering and leadership in real-time

The user-friendly interface allows an agile and easy adjustment of assumptions and scenarios if need be. This enables top management to immediately take new insights into account and integrate them into existing scenarios – live and during their discussions. The calculation of new scenarios happens with the push of a button, so that results are instantly available. This way, different alternatives can be assessed ad hoc, further improving the decision-making process.