We are very pleased about the successful collaboration with Infineon and the resulting paper about driver-based simulation in managerial accounting, which was published in the journal Controlling, issue 2/2020 (only available in German). The paper describes how Infineon set up and uses Dynaplan’s dynamic business planning solutions to support the evolvement of controllers towards business partners. By using driver-based simulation models, efforts for generating aggregated financial predictions have been reduced, providing more time for value-adding activities.
Identifying and quickly quantifying major business drivers consistently offers a potential for fast decision-making on the basis of several scenarios. The focus of the driver-based approach on essential parameters shortens the response times of simulations. For the future, it is intended to use uncertainty analysis, supported by the tool [Dynaplan Smia], to derive a range of possible developments in order to make the inherent uncertainty about future parameter values more tangible.
In times of an unprecedented global pandemic, future developments are impossible to predict. However, despite all the uncertainties and challenges ahead, we cannot bury our heads in the sand and wait for better times. Now, more than ever, it is important that we are prepared for change and able to adjust our plans in response to new information.
The paper shows that driver-based simulation models serve as an efficient communication platform that supports a quick deduction of insights based on multiple scenarios and statistical uncertainty analysis. Hence, controllers are better able to evaluate the sensitivity of financial forecasts, thereby supporting them in their new role as sparring partners to decision makers. These qualities of driver-based simulation models ensure that companies can make smart decisions, especially in times of great uncertainty.
Learn more by reading the full paper or signing up for one of our free webinars about driver-based simulation in managerial accounting.
Update March 2021
The article has been granted the Best Paper Award Praxis 2020 by the journal Controlling.