What is the Scenario in Decision Critical and how does it work?

What can you make assumptions about in Decision Critical?

What is the Assumptions in Decision Critical and how does it work? 

After you have explored a scenario, you have now learned what drives a result in each scenario: Assumptions. In each scenario, you can set your assumptions. These are basically your best guesses about things that might affect your budget or strategy.

Now, think of assumptions as the building blocks within your Scenario. These are your informed guesses about various factors that might influence your budget and overall strategy. The more accurate and realistic your assumptions are, the more reliable Decision Critical's predictions of potential outcomes will be.

Why are Assumptions important?

By carefully considering and inputting these assumptions, you create a realistic foundation for your scenario. This allows Decision Critical to analyze the potential outcomes of your strategic plans with greater accuracy.

So, let's take a closer look at each assumption and explore it thoroughly, considering both theoretical and practical aspects. This will help you better understand and work with the assumption effectively.

Each scenario is associated with a set of "Assumptions." These assumptions are critical drivers for the budget or strategic plan being developed in that scenario. Users input these assumptions, which can be based on approximations and best available information.

What can you make assumptions about in Decision Critical?

Here's a glimpse into the key areas where you can define assumptions:

• Business Concept :
  • Organizational Structure: This could involve adding new departments, setting batch settings for resource allocation within departments, etc.
  • Products: Define the products you sell or use as components in other products.
• Resource Allocation :
  • Staffing: Set assumptions for different types of employee roles and needs.
  • Equipment: Manage assumptions about various equipment and their impact.
  • Land & Buildings: Model your real estate assets, including rentals, purchases, and new constructions.
  • Raw Materials: Define the materials needed for your production processes.
  • Financing: Set up debt and equity financing assumptions.
• Business Environment :
  • Tax: Model your tax situation, including income tax, VAT, sales tax, and payroll tax.
  • Utilities: Make assumptions about utility usage (electricity, water, etc.) based on your operation.

Nevertheless, we have already written an article that explains how to construct and use each assumption. Check out the related article below.

1. For Business Concept Assumptions
   (e.g. Organization Structure, Products)
   Click here
2. For Resource Allocation Assumptions
   (e.g. Staffing, Equipment, Landing and Buildings, Raw materials, Financing) 
   Click here
3. For Business Environment Assumptions
   (e.g. Tax, Utilities)
   Click here