Companies use IBP to translate insight into financial impact by providing analyses such as:[citation needed] Identification of top financial (profit) drivers
Answers to “what-if” questions
Simulation
Optimization to any variable or ratio, including balance sheet, profitability, NPV, cash flow, etc
Intelligent sensitivity analysis
Modeling infeasibilities
Understanding of unique performance driver relationships
Opportunity costs and marginal economic value Dr. Whitehair, working in collaboration with scientists in the U.S. and the Russian Academy of Science, solved the problem of scaling real-life situations in mathematical equivalents. Today, IBP software easily runs thousands of analyses of a mathematical representation of ~1,000,000 equations, each in excess of 1,000,000 variables, in a typical solve.[citation needed]
In broad terms, the use of mathematical representations and extensive knowledge bases enable users to build the massive, multivariable models required for Integrated Business Planning
Thursday, April 9, 2009
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