Financial planning: optimization through driver models and scenario simulation
Article in Controlling-Berater Volume 57 “Instruments, processes and business models on the move” – How controlling can be made fit for the future
- The use of value driver models in financial planning increases the transparency of cause-effect relationships and enables the focus on relevant influencing factors in enterprise performance management.
- Based on actual data, key performance indicators can be derived as a result of simulations, leading to greater planning efficiency.
- Forecast and plan scenarios can be created through a flexible combination of assumptions, drivers, and impacts of actions, allowing for immediate evaluation of possible outcomes.
- The paper presents the characteristics and approach of driver-based planning with scenario simulations. The example of the Siemens Digital Factory is then used to illustrate the experiences of a software-supported implementation of this modern form of planning.
