Planning & Scenario Analysis2018-12-06T17:47:13+00:00

PLANNING & SCENARIO ANALYSIS

EXPLANATION

Traditional cost and profitability systems are not able to quickly and easily provide easy what-if scenario analysis. With Magic Orange, businesses can manipulate one or many cost or revenue inputs or drivers and immediately understand the change to the cost and profit of the products and services delivered. Being able to plan and manage multiple scenarios such as budget, actual, forecast, move to cloud, outsource certain services etc. are essential to effective cost management and strategic planning.

KEY BENEFITS

Optimal resource allocation – Predict future possible scenarios so that managers can more optimally allocate resources.

Risk Reduction – use scenario planning for new adverse scenarios so that you can better prepare for these.

WHO WE HELP

SHARED SERVICES

Struggle to price up the impact of scenario changes to their service offering

• Understand the impact of the change on the total cost of ownership and revenues of their products or services
• Better predict future products or services spend and revenues
• Better align resources to deal with planned changes

FINANCE

Have trouble in understanding the impact of scenario changes on the allocation of complex products or services costs

• Understand and manage the impact to the total cost of ownership (TCO) and revenues of products or services following a change in scenario
• Create accurate what if “budgets” that can be explained
• Show how revenue or spend on products or services will be impacted over time

BUSINESS UNITS

Struggle to understand the impact of scenario changes on their allocated costs

• Understand in granular detail how the change in scenario will impact their underlying cost and revenue allocations
• Work out what the true profit margin will be for delivering services and products to market in the scenarios analysed

QUESTIONS ANSWERED

SHARED SERVICES

• What is the true cost of ownership and revenue of products or services in the new scenarios?
• What will the future spend or revenues in the new scenarios look like?
• What resources are being used in the new scenarios?

FINANCE

• What will the total cost of ownership and revenues of products or services look like in the new scenarios?
• How does spending and revenue on products or services change in the new scenarios?
• How do costs and revenues of products or services change over time in the new scenarios?

BUSINESS UNITS

• What is the detail behind the changes in my allocated costs in the new scenarios?
• What is the impact on the profit margin of products or services for the business in the new scenarios?