By Ron Moore on June 8th, 2017
Doing what-if isn’t new. As long as I can remember everyone talked about it and the goal-seeking functionality using LOOP has been around for decades. But do most of our calculations use causal drivers or are they “type it in and agg it up” type databases. And how much what-if-ing can you really do if the database takes an hour to aggregate?
What Are Companies Doing Today?
Today more and more companies are using driver-based designs and recent improvements such as Hybrid Aggregation, new calculation functions, and bigger hardware mean that there are new possibilities. Profit opportunities don’t usually follow simple linear patterns. Well-designed driver-based models capture complex patterns and help identify risks and opportunities that would otherwise be missed. Goal-seeking can significantly reduce the time it takes to set and distribute targets. Sensitivity analysis can help set priorities by identifying the most important drivers. It can also help compare a range of options to identify sweet spots.
What-if, Goal Seeking, and Sensitivity Analysis
For Kscope17, we’ve put together a presentation that will walk you through the ins and outs of what if, goal seeking, and sensitivity analysis.
First, we will examine the business logic behind some useful what-if calculations that help uncover financial dynamics that make a difference in business results.
Next, we will examine the outline and business rule considerations and options.
Then, we will dig into the code and show examples of outlines and business rule code for:
- Pushing down top-side budget adjustments
- Driver based what-if calculations
- Goal-seeking for target setting
Prioritization and range comparison with sensitivity analysis
Last, we will show some examples of using these techniques in real world applications.
Join Ludovic De Paz and me on Wednesday, June 28 at 1:45 p.m. for a deep dive into Extreme Essbase Calcs. Don’t forget that TopDown’s experts are presenting seven other sessions at Kscope17. We’re covering the gamut of topics:
Handling Textual Data in Planning and Essbase—A Starbucks Case Study – Juan Porter and Rhonda Brigham, Starbucks