Uncertainty makes strategic planning complex. Removing, or even mitigating, uncertainty can create unlimited business value. However, most companies lack the strategic planning infrastructure to rise above the unknown.
My previous blog have illustrated how OLAP tools support management processes and provide key stakeholders with relevant, actionable insight for speed-of-thought analysis. Yet while understanding the past through historic data is necessary for sound decision-making, is it sufficient for forward-looking estimates? Making the right decisions requires you to anticipate and plan for possible changes in the future. A common approach to anticipate these changes is to first assess the company's current position by analyzing historical information to understand the company's past. Occasionally, however, there might be very little or no historical precedent. And even if you do have historical data, it might not extrapolate correctly into the future. For example, let's assume your company wanted to launch a new product or compete in a different market. Your company's past and present state can be a good indicator of future performance, but does not guarantee it. The linkage to making the right actionable decisions still requires additional analysis.