What is meant by What-if scenarios?
The term "what-if scenarios" refers to an analytical method where various hypothetical assumptions are made to simulate their impact on future outcomes. These scenarios are often used to support strategic decisions, assess risks, and identify opportunities by playing through different assumptions about market trends, cost changes, or resource allocations. Companies use these scenarios to be better prepared for changes in the business environment.
Typical software functions in the area of "what-if scenarios":
- Scenario Simulation: Creation of multiple hypothetical scenarios and their impact on business processes, finances, or logistics.
- Scenario Comparison: Analysis and comparison of different scenarios to identify the best outcome or the least risks.
- Data Modeling: Using historical data to model and analyze various future scenarios.
- Risk Analysis: Identification and evaluation of potential risks based on the simulated scenarios.
- Real-Time Analysis: Adjusting scenarios in real-time with current data to make quick and informed decisions.
- Reporting: Creating reports and charts that visualize the impact of different scenarios and make them available to decision-makers.
- Scenario Storage: The ability to store scenarios for future reference and review previous simulations.
