Scenario Planning
Manage Uncertainty and Build Confidence!
In situations where portfolio investment decisions are sensitive to uncertainty and changing conditions, Definitive Pro provides the capability to set and test the following variables for your planning scenarios:
- Criteria weighting factors
- Discount factors (by year)
- Cost forecast (set % increases/decreases by year)
- Optimization constraints and dependencies
The creation and use of these scenarios are independent of each other, providing 24 different combinations of scenarios that can set and tested. Finally, for ease of use, Definitive Pro provides a “Super Scenario” capability to select a scenario of scenarios in each of the four areas described. Rather than set and run the scenarios individually, they can be organized into super scenarios so that a set of them can be run together. Scenario testing allows the results of the scenarios to be compared side-by-side to help our customers make decisions with foresight into what the future could look like.
What is Scenario Planning?
According to Gartner, scenario planning is a must-use tool for functional leaders to drive immediate actions, decisions, and longer-term plans. In recent years, planning for possible future scenarios has become more complex and more critical, yet many organizations lack experience in this area. Scenario planning bolsters confidence and resilience by helping you decide what decisions to make given a wide range of different situations. Scenarios are compelling descriptions of possible futures — not necessarily the most probable ones. They should be plausible, coherent, and substantially different.
