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Getting Started With Strategic Planning

Strategic Modeling provides features for strategic planning, forecasting, scenario analysis, and financial modeling. It offers a built-in chart of accounts, consolidation capabilities, predefined forecasting methods, target setting, and what-if analysis. Key advantages include comprehensive strategic and financial planning, flexibility to evaluate assumptions, audit trails for calculations, and debt and funding options to improve forecast accuracy.

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Amit Sharma
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813 views9 pages

Getting Started With Strategic Planning

Strategic Modeling provides features for strategic planning, forecasting, scenario analysis, and financial modeling. It offers a built-in chart of accounts, consolidation capabilities, predefined forecasting methods, target setting, and what-if analysis. Key advantages include comprehensive strategic and financial planning, flexibility to evaluate assumptions, audit trails for calculations, and debt and funding options to improve forecast accuracy.

Uploaded by

Amit Sharma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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What Is Strategic Modeling:

Core Features:  Strategic Modeling provides a forecasting solution that enhances scenario modeling
processes. Using out-of-the-box capabilities, you can model and evaluate financial planning,

Forecast Methods
perform scenario analysis, debt modeling, and robust consolidation capabilities.

 Strategic Modeling, a part of Oracle Enterprise Performance Management Cloud Services for
Planning, integrates with Financials, Capital, Projects, and Workforce Planning, along with
Audit Trails your Planning reporting cubes to quickly view detailed planning and budgeting data in your
model.

Reporting

Model Change
Business Case and Funding Options and Manager and
What If
Consolidation Debt Scheduler Assumption
Manager
Source: Oracle
Features:

Strategic Modeling Features

Strategic Modeling provides these features:

 A built-in hierarchical chart of accounts to get you up and running quickly


• Strategic model with predefined templates to meet different business sectors such as Financial, Education, etc. have a built in hierarchical chat
of accounts to cater to the need of planning. For example a service industry has a predefined
 Consolidations
• In Strategic Modeling you set up consolidation structures to represent the structure of your organization. For example, you can conduct region-
specific analysis, by setting up four regions within the Service division.
 Forecast modeling
• With Strategic Modeling, you can project account values for forecast periods. You can define unique forecast methods for each account by
selecting from several pre-defined forecast methods or you can create your own. You can also build your own freeform formulas.
 Target setting
• With goal seek, you specify a target value for an account, and you determine the changes to a related account needed for you to achieve that
target. For example, you can identify a sales target for a product and use goal seek to determine the change needed in the price per unit to
achieve that sales target.
 What-if analysis
• With Strategic Modeling, you can model different business outcomes that are calculated based on different sets of forecast assumptions.
• You can create additional scenarios to conduct What-If analysis. For example, you can have one forecast in a High Growth scenario with
optimistic assumptions, and another forecast in a Low Growth scenario with a more pessimistic set of assumptions.
Source: Oracle
Advantages:

Advantages of Strategic Planning

 Strategic Modeling provides on-the-fly scenario analysis and modeling with financial forecast modeling so that your operational plans, long range plans
and financial strategy align.
 The Strategic Modeling business process is comprised of one or more models. You perform long-term strategic planning within those models. Models
contain predefined reporting and modeling standards, and are populated with a hierarchical chart of accounts, a time structure, reports, dataviews,
account groups, and all the metadata from the template or the model from which it was created.
 Every account uses a unique forecast method to project account values in future (forecast) time periods. Use Account Forecast to review or define the
forecast method for accounts.
 You can investigate the components that contribute to cell values. You determine how a value is calculated by using Audit Trail. From any cell, you can drill
to notice the values that contributed to the cell value.

Source: Oracle
Strategic Modeling Vs. Planning:

Strategic Modeling Vs. Planning

 Benefits of Strategic Strategic Modeling


• Strategic, long term comprehensive view of your financial statement
• What If analysis with the flexibility to determine the impact of various assumptions
• Audit trail to analyze the calculations along with built in reporting
• Debt schedular, Funding options, Consolidations
• Improved forecast accuracy using simulations

Source: Oracle
Strategic, long term comprehensive view of your financial statement:

Comprehensive View of Income Statement Comprehensive View of Income Statement Accounts Used in
Accounts Used in Excel Strategic Modeling

Source: Oracle
What If analysis :

 What If analysis with the flexibility to determine the impact of various assumptions

With scenario manager Financial planner With Simulation Financial planner/CFO With Goal Seek Financial planner/CFO can
can create various scenario to manage can simulate forecast based on range estimate weather target goal which is
various business use case such as: dependent on another key indicator is
• Expansion achievable or not.
• M&A
• Capital Addition
Source: Oracle
Audit trail:

Audit trail to analyze the calculations along with built in reporting


 With Audit trail, user can identify the backend calculation that are taking plane in order to reach to forecast or plan numbers. It tracks down all the
calculation level by level to help the business user to identify the correlation and also make the changes as desired.

Source: Oracle
Debt schedular, Funding options, Consolidations:

Debt schedular, Funding options, Consolidations

Strategic model utilizes funding options to use excess cash to pay down high interest debt or buy back shares of stock. Items used to balance the model are
called Funds. With a surplus of funds, the system finds available uses of funds to balance; with a deficit of funds, the system finds available sources of funds
to balance.

Source: Oracle
Improved forecast accuracy using simulations:

Improved forecast accuracy using simulations

Strategic Modeling Simulations use the Monte Carlo method to


automatically generate hundreds of “what if” scenarios for your
model. Each “what if” scenario is considered one trial of the
simulation.

Source: Oracle

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