Value driver tree can be used when we want to simulate revenue or expense over subsequent years based on driver values or calculate specific account. Following are the couple of scenarios which we will explore here to build value driver tree. Value driver tree is currently supporting only the yearly projection.
Year on Year Node – Simulate Revenue by a growth percentage % for a company code for future years.
Simple Calculation Node – Calculate Cost based on the product of Price and Quantity.
Prerequisite is to maintain the accounts for Price, Quantity, Cost, Revenue and Revenue Growth %.
We need to have Revenue for previous year and Revenue Growth % for each year So that we can project future year values. We need to build story (Input form) to save those values. Similarly the Price and Quantity values are required for calculation node scenario.
Year on Year Node:
Revenue Growth driver tree simulation will simulate values based on the previous year 2016 values and update in subsequent years. We can also use filter options if we want projection to happen only for certain dimension filter like specific company code or product line. So we can see the Revenue numbers are projected for each year 2017, 2018, 2019 and 2020 based on the Growth % 0.3, 0.4, 0.5.
E.g. Projection for 2018 (8580) = 6600 + 6600 * ( 30%)
This value driver tree can be inserted a story canvas and make changes to values directly after simulation.
Note: We could currently do only yearly projection. Projected data will get saved only in Jan month of each year and need to have some trend values from previous year E.g. 2016. If there is no previous year value, simulation would bring projection as 0.
Simple Calculation Node:
Simple calculation node works similar to calculated measure in a story but we can project graphically. Here we can see the values for Price for each year 50, 60, 70, 80 and Quantity for each year 120, 150, 200 and 250. So the output cost for each year would be 6000, 9000, 14000, 20000 respectively.
Before calculation simulation in driver tree,
After calculation simulation in driver tree,
Node definition while creating driver tree for YoY and Calculation nodes:
Business users could simulate year on year projection based on a driver % or simulate calculations for a specific account. This value driver tree could be inserted in a story canvas and make updates to values directly after simulation like a normal save operation (Version Management -> Save values). So this value can be used as a projected budget values for future planning.