Learn about the next generation of model building that Concerto has to offer

To know about various Models and their approach, read the article below and watch the video to understand the Models in a better way!

This article covers the following topics

• Jump in to 'Value Model' to know more about the Value Driver Trees

• Benefits to Live and Breathe Value Driver Trees in Concerto Models

• Different visualisation tools

•  Know more about the 'Model Orientation' options in Concerto

• Link your Value Model to the 'Scorecard Model'

Value Model

Value driver trees are used to visualise and analyse the flow of value from one Value to another. The value Model can be expanded into various branches to explain in detail how certain critical decisions can directly affect the value generated or lost by an organization. It is helpful to organize the necessary information in the form of a value model; this model can be created in a collaborative manner and revisited when the team gets new information.

Without value models, you risk deciding in favour of something that does not generate business value or deciding against something that does. There are three categories of value drivers: growth drivers, efficiency drivers, and financial drivers.  We suggest you further read about the steps to create and customize Value Model in detail in our article Value Model Creation.

                              Navigation from Scorecard Model to Value Model

Value Model

Benefits to Live and Breathe Value Driver Trees in Concerto 

A Value driver tree can show how to model, visualize, simulate, and optimize process improvement or
business improvement. The usefulness and growing importance of value driver trees for scenario
planning in an ever-changing and unpredictable operating environment have increased. In Concerto, you can model a 360-degree view of your business in a matter of hours, not days or weeks. The intuitive value driver tree lets you perform the following:

Business, Sensitivity, Financial and Operational analysis

Different visualisation tools

Branch Types

The branches you see in the value model gives you an indicator of the component parts that make up the “what” above it and what KPI it reports. Its shows you the person responsible for that KPI. When you navigate on the value driver model, from left to right or top-down, you can become more granular or micro in terms of zeroing in to find a problem or issue in your model.

 Model Orientation options

The orientation of the value model can either be top-down or left-right as shown.

Left to Right approach

Top-Down approach 

Card Stack vs Branch view

There are two views that the model can be presented either as a stack of cards or the branch view. The card stack is usually a representation of the different drivers within that model whereas the branch view as shown you above allows you to visualise and analyse the KPIs to make recommendations and implement solutions.

Card Stack Vs Branch View

Scorecard Model Vs Value Model

Functionality

If I expand the tree, we see more elements to the Value Driver Trees. We see that the boxes are connected in a relationship and that that relationship is described mathematically, in this case, with small arrow signs. which indicated expansion. It’s apparent that these lower levels elements multiply together to equate to our starting element. This is the fundamental function of a Value Driver Trees, to transparently show the relationship between different elements of value. Interestingly, the value driver tree is not strictly a tree but a network. The driver tree abstracts a lot of complexity, however, when combined with metrics, it helps unearth potential opportunity areas and acts as a guide. Note that the Value Driver Tree models facilitate not only the analysis but also stakeholder discussion and communication in all the use cases.

Scorecard Model

For easy navigation and drill down, select Scorecard Model to view the scorecard layout. You can create your own Scorecard model and perform qualitative or subjective evaluation by adding attributes to the modeller. If you are interested in abandoning the judgmental approach and opting for a more formal data-based statistical approach, refer to the article Scorecard creation to create your Scorecard. 

                                                        Scorecard Model 

Personalisation and Event click for Scorecard

The Scorecard can be used to unify various business units or operational streams as shown. You can also personalize and customize your scorecard by simply selecting the visuals or image of your choice. You can control behaviour on node header click. The aggregation of all these Value drivers are being presented on the Scorecards to allow for the Managers or Board of directors to view and make recommendations. Drill Down option, drills down to another level of a model. Open Model, navigates to a different model entirely.

                                           Event Click and Personalise the image for Scorecard

 Still, having trouble navigating throughout Concerto? Get in touch with our support experts– we're happy to help.