Scenario simulation

Simulate financial scenarios in real-time to make better management decisions

The business environment is shaped by increasing complexity and uncertainty. Therefore, being able to transparently portray and spontaneously analyze not only current, but also future business trends and their impact on key performance indicators, is becoming continuously more important. These new requirements quickly bring conventional methods of planning and forecasting to their limits, as they are often tedious and ty up too much capacity. Because of new technologies like simulation, in-memory database technology and predictive analytics the finance department has a whole new set of tools available. Simulating scenarios with Valsight enables your top management to get a detailed overview of how current trends and changes affect your KPIs. Based on the results, decisions can be made in a faster and more fact-based manner. This is what we understand as “Financial Planning & Analysis in real-time”.

Use cases

Business case simulation:

Valsight enables the simulation of financial KPIs in order to make an investment’s profitability or the return of strategic measures more assessable. Simulate in detail, whether your planned investments, which may take place over a timespan of multiple years, are profitable. Explore the effects that adjusting relevant KPIs, CAPEX structures and future cash flows can have on your company’s financial situation with the push of a button.

Increased flexibility

Scenarios in Valsight are set up on base data, which is then extrapolated by using different assumptions about the future. By simply selecting or deselecting certain assumptions, new scenarios are created and simulated within seconds. A user-friendly interface enables the fast and easy adjustment of parameters. Additional data dimensions, like countries or products, can be added at any time without having to adjust the underlying calculation logic.

Transparent results

The notation of the operations used in the graphic driver tree is easily understood, even without programming skills. The Scenario Manager, the core application for using simulations, provides a structured and comprehensible overview of the assumptions created for any scenario. Profit bridges outline the impact assumptions have on a defined KPI and provide additional options for analysis.

Fact-based discussions

The graphic driver tree and the flexible ad hoc simulations promote fact-based discussions in management meetings. During management discussions, new insights can be immediately taken into account , which is why their effect on the driver model’s different variables can be shown transparently and in real-time. Therefore, the discussions are focused exclusively on the relevant functional topics e.g. assumptions or measures, which are the backbone of any financial scenario.

Reference Story:
Leipziger Verkehrsbetriebe

As a Valsight user, I am able to quickly create new value driver models with multiple data dimensions. If needed our models are easily adjusted on-the-fly to enable a more streamlined and focused planning process.

Uwe Pohlers
Director Finances and Controlling
Leipziger Verkehrsbetriebe (LVB) GmbH