Desktop Computing with Applications Introduction Modeling

1
Desktop Computing with Applications
IntroductionModeling

• Richard Fisher
• The University of Texas at Dallas

2
MODELING

• A model is an abstraction of reality
• We will develop a model to represent businesss
  financial performance to help in deciding future
  course of action
• Some types of models
• Verbal Model (Narrative)
• Schematic Model (charts diagrams)
• Mathematical Model (PL, Product Report)

3
MODELING

• We will develop a Model-driven DSS - Decision
  Support System (standalone system that uses
  modeling to perform what-if and other kinds of
  analysis)
• A DSS is a computer-based information system that
  provides a flexible tool for analysis and helps
  managers with nonroutine decision-making tasks

4
MODELING Assumptions Drivers

• Assumptions are the hypothetical inputs to the
  model that drive the outputs (Pro Forma)
• Changing of Assumptions is what-if analysis
• An Assumption is a model variable (value) that is
  usually stored in a cell (not hard-coded)
• Drivers are variables that are used to determine
  (drive) higher level values in the model

5
MODELING Assumptions Drivers
6
MODELING Assumptions Drivers
What Drives Revenue ?
7
MODELING Assumptions Drivers
8
MODELING Assumptions Drivers
9
MODELING Assumptions Drivers
10
MODELING Assumptions Drivers

• Assumptions will tell the story
• Major Assumption Areas
• Manpower (Salespeople)
• Products
• P L

11
Accounting 101
12
Accounting Relationships

• REV COS GM
• COS GM 100

13
Decomposition

• Decomposition is the separation of something into
  its parts
• Task decomposition is splitting a task into
  subtasks
• Example Warm-up Exercise

14
the end