When Do You Need Advanced Business Modeling
and Decision Analysis?
A few key factors determine when advanced decision analysis
techniques can benefit your business initiative or operations.
These factors are indexes that help you gauge the level of complexity
in your business problem.
As the number and intensity of risks and uncertainties increase,
the problem complexity also rises. You need to evaluate more
decisions and the business impact of those decisions.
Complexity in Framing the Problem
Sometimes framing the problem is the most difficult
consultants specialize in mapping the “big picture” so you can see
how decisions and uncertainties impact the overall business.
As further iterations of the business model are required to add precision to the plan or decision, finding all the places in a standard spreadsheet model to change can be very difficult. There is now a much easier way to add products, regions and capital purchase categories to your model using Petranomics Analyzer's Fast Modeling[TM] capabilities. With Petranomics Analyzer's Economic Modeler, these extra dimensions are automatically propagated throughout the business model as the additional dimension such as Region or a new member like West is added to the assumptions or to an outcome’s equations. Then all outcomes using these dimensioned
assumptions or outcomes are automatically updated with these
Improve Cycle Time, Reduce Modeling
Errors and Accelerate Model Changes
Classic spreadsheet modeling is time-consuming, prone to errors and can be difficult to review, audit and analyze. With Petranomics Analyzer's Economic Modeler you can achieve Fast Modeling in your business planning and modeling. As a result, modeling and change cycles can keep pace with your planning timeframe.
Improved Model Understanding
Move beyond cell references and
the complicated cell based equations to using logical business
names for your assumptions and outcome equations. Logical names
make models easier to read, review and reduce errors.
and Scenario Management
Building Ad Hoc Analysis in Spreadsheets Isn’t Enough
Though business problems call for scenario analysis software tools, with spreadsheets you have to build the economic analysis from scratch, which makes it difficult to explore and compare more than just a few alternatives. Now you can focus your time on creating the right set of scenarios and learning from the results because you no longer have to manually structure, compare and manage multiple scenarios.
Business Assumption Uncertainty
Significant improvement can be achieved in business analysis
if business assumption uncertainty is incorporated instead of
single value inputs. This problem is further complicated when
uncertainty is medium to high with a wide range of assumption
values, or where there are numerous assumptions with uncertainty.
Numerous Alternatives to Examine and
Do you need to examine many alternatives but can’t manage the scenarios? With Petranomics Analyzer's sensitivity analyzer and scenario manager, the initial and changed values are tracked and scenarios are compared automatically with visual display results. As a result, you can create and examine many scenarios very quickly and focus on the analysis itself, not the analysis structure. By automatically creating the comparison views, you can quickly analyze the trade-off interactively and make good decisions.
Need to Understand the Dynamic Robustness
of the Business Model
Determining your business plan's robustness can be very difficult but critical for your financial plan and budget. Understanding the robustness of the business plan or pro forma yields great insight on how to manage the business and react as events occur. Incremental outcome sensitivity analysis offers a powerful capability to achieve this insight using our interactive tools.
Outcome Results to Incremental Changes
Hard to Determine
Tired of being tied to a batch input process to see output change? The Petranomics Analyzer's Sensitivity Analyzer and Scenario Manager can dynamically compute the impact to your business metrics and outcomes as you adjust the assumption variable. With this powerful set of business tools, you can achieve better analysis and reliability.
Multiple Alternatives and Scenarios
Managers often settle for only one or two scenarios or cases because business tools do not support scenarios adequately. By applying integrated scenario management with decision analysis from LayeredRock Software you can focus on the analysis and comparison because our tools allow you to make incremental what-if changes and see scenario results dynamically.