Business Modelling

Business Modelling is the representation of the business’s current state in the context of the environment in which it operates. Strategic business planning is one of the most common areas where modelling and planning work together to provide greater value for the organization. We have all seen good examples of financial models such as balance sheets, income statements, and cashflow statements, which represent the current state of the business. Apart from the budgeting and financial planning, which are quite popular and well know, Business Modelling and Planning can also contribute to better-informed decision-making in all other aspects of the business.Some of the benefits, which cannot be ignored by modern business, are set out below:

  • the clear representation of the current state of the business mitigates the risk of making decisions based on inaccurate understanding of the situation;
  • planning can reflect different viewpoints and scenarios of the outcome of a particular situation;
  • models are excellent means to identify bottlenecks or issues with a business process that would otherwise go unnoticed;
  • Modelling and Planning can be used to run simulations and what-if scenarios of proposed business changes, helping companies evaluate desired results;
  • Modelling can integrate all related or influential factors within the organization to ensure completeness of a solution, subject to implementation; and
  • communicating business changes, risks or simply unifying processes is much easier when effective Modelling and Planning exist within the organization.

How does all this generate value?

Business Modelling and Planning helps a company organize how it will generate revenue and make profit. The business model describes what products or services the business plans to manufacture and advertise and how it intends to do that including what expenses it will incur. The business plan is an outline of the company’s goals and how they plan to achieve them. These processes will help you lay out a step-by-step plan of action for profitably operating the business in a specific marketplace.

In the last 30 years, technology has revolutionized how businesses do their planning. Spreadsheets have given us a very flexible and easy to use planning tool, while planning applications now tackle most types of business planning carried out by business functions such as HR, Finance, Sales, Marketing, and Operations.

B EYE expertise in Business Modelling and Planning

Our recommended tool Anaplan will help you eliminate unnecessary complexity in collaboration, caused by multiple spreadsheets and overwhelming email exchange. You will be able to avoid security risks from business-owned databases and ensure compliance with laws, regulations, and standards. Anaplan will improve the capabilities of all areas of your business by providing data on different levels of granularity and real-time, scalable Modelling and Planning.