Design Premises Business Unit Level Cluster/Divisional Level Group Level

The Premises behind the EVP™ design:

The EVP™ simulator has been designed around the premises that it must be:

  • enterprise-deep from corporate level down to cluster and to business units level
  • capable of two-ways planning flow , that is bottom-up capacity planning and top-down target planning
  • usable in-meeting real-time™ for the likes of rolling-forecasts, zero-budgeting, scenario planning, strategy planning, etc.
  • usable by business people who are not technicians by training
  • time-scalable from short-time simulations to intensive-computation simulations over long term like the typical 5-year or decade view

That EVP™ is an enterprise-deep simulator is a necessary condition for the value protection and creation of the Enterprise.

  • Indeed, value protection and creation has to be enterprise-deep because what is created at unit level can be destructed or protected at cluster and corporate level and vice versa

That EVP™ is a two-way planning flow simulator is also a necessary condition for the value protection and creation of the Enterprise

  • Bottom-up planning (from BUs up to Clusters) defines the enterprise value-generation capacity or, metaphorically, the ‘horse-power that can be delivered by the value-engine’ of the enterprise.
  • Top-down target planning (from Corporate level down to Cluster level and BUs level) sets the enterprise value-generation target or, metaphorically, ‘the throttle/gas-pedal that commands the release of the engine’s power’.
  • Misalignment of target planning and capacity planning either destructs enterprise value or ‘leaves enterprise value on the table’; metaphorically, it either ‘damages or blows the engine’ by commanding too much power or ‘soots up the engine’ by under exploiting its total power capacity.

That EVP™ is usable in-meeting real-time™ by non-technician business people is a necessary condition for our clients’ return on investment.

  • We know through years of experience that software which cannot be used by nontechnicians in business, meeting real-time (i.e. used in batch-mode by technicians who hand-out results to business people…), is rarely used, period.

As for EVP’s time-scalability simulation, this designed feature is to resolve one of the major flaws of spreadsheet-based modeling

  • Indeed, trying to use a spreadsheet model in simulation-mode (where the model’s trajectory is projected/simulated through time) generates so much complexity that it rapidly becomes intractable with medium to long-term time scales. For executives, seeing the results of medium to long-term time goal setting is simply a must.

Although these premises are quite stringent from a software-design perspective, our experience with enterprise planning has shown us that these are necessary conditions to resolve the universal frustration enterprises have with planning.

 
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