Q1. A CFO wants to simulate the financial impact of various business decisions (e.g., changes in cost structure, and sales volume changes) using live data.
How can you set up a scenario-based simulation in the SAC Digital Boardroom for real-time business decision-making?
Ans:
Here, in order to setup the scenario based simulation for better business decision making, we can use the concept of what-if analysis, input controls and predictive analytics using live data concept. This way we can let the CFO interact with the dataset dynamically and visualize the potential financial impact of different decisions.
Basic steps include:
– Integration of live data sources so that we can achieve real-time updates on each key metric such as sales, costs, etc. This will help with accurate simulation.
– Now design a data model that includes all the key financial metrics such as revenue, expenses, margins, etc. It should have all the historical and dynamic elements.
– For scenario-based simulation, we can use the concept of input controls using key variables such as sales volume, pricing, cost, etc. This way the data can be dynamically adjusted & automatically updated for various visualizations and calculations in the digital boardroom.
– Next, is to create a what-if analysis feature for simulating various scenarios based on the business decisions.
The final is to simulate the potential business outcomes using the concept of predictive analysis based on various historical trends and data.
– You also have to set up visualizations that dynamically can update themselves as the CFO can adjust the visualizations according to the input controls. Enable collaboration features for decision-makers to discuss outcomes in real-time. Ensure real-time data updates during the simulation for accurate decision-making.
This way we can create dynamic scenario-based simulations to explore the financial impact of different business decisions and make data-driven decisions in real time.
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