After getting first impressions on the functions and tools of Valsight, we now want to build our first more complex model that can explain the business processes and drivers of a multinational diversified enterprise. Therefore we will construct a model and workspace to illustrate the planning process.
In this tutorial you will learn how to create complex model for a business that has a product and service division and operates in multiple countries. It follows a couple of our best-practises, including a focus on drivers (Price, Personnel and Non-Personnel cost rates, Volume, etc..) and forecasting.
Our model (MDE) showcases the business model of a company that operates in 3 different countries spread across 2 regions. It sells 3 different products as well as 3 different services. Therfore they employ staff that can be categorized into 14 different groups. The model gives insight for the next 4 years. With this model we want to show what typical values can be calculated with our model broken down to each and every driver of the tree.
As this tutorial discusses building a more complex model we assume that you already know the basics of how to build a model with Valsight. If this is not the case we highly recommend to visit V2 - Building a First Model - Step by Step first
This is how the first nodes could look like. We now have three parts that define our profit. In the following two pictures we mapped out how a typical driver tree could look like that determines these three indicators.
The images also give you a first idea how drivers like a salary increase or the personnel split of the M&S department can influence the data from your xlxs sheet.
|1. MDE Base Data and Dimensions|
Creating Dimensions & Uploading the base data
|2. MDE Submodels||Defining the model hierarchy|
|3. MDE Product||Calculating the product revenue and costs|
|4. MDE Service||Calculating the service revenue and costs|
|5. MDE OPEX||Calculating operative expenses|
|6. MDE P&L||Joining 3, 4 and 5 into Profit and Loss Statement|