While we’d all love the ability to predict the future of our business, the reality is that none of us have a crystal ball. The future is, by nature, unpredictable—and even highly educated assumptions can never truly be made with 100% confidence.
In fact, our economic and business future is about as unpredictable as it can get right now, and there are thousands of individual factors at play that can influence any number of differing outcomes for your business.
How does a business gain more control over uncertainty?
In a recent article, we discussed how important it is to be able to gain instant access to your business data as it comes in so that you can make better business decisions.
Today, however, we want to talk about the concept of scenario planning. Scenario planning can help prepare your organisation for all possible future outcomes before the raw data begins to filter through.
Through scenario planning, you can ensure that when you do receive access to the data that you need, you are ready to make the right decisions for your business.
Scenario Planning: a powerful tool for your organisation
If your business doesn’t use scenario planning when strategising for the future, you are leaving yourself open and vulnerable.
Scenario planning is, without doubt, the best and most effective way to prepare your organisation for the future, because it allows you to determine the impact that small or large changes in individual data sets could have on each area of your business.
Consider this example
Consider the following example, using a scenario that most businesses are currently facing right now: rising interest rates.
If your business practices effective scenario planning, then you should already have a clear understanding of the impact that each possible rate increase will have on your business, as well as a plan of action related to each outcome.
For example:
Scenario 1. If interest rates rise by 0.5%, this is the impact that it will have on our business, and this is what we will do to navigate these changes.
Scenario 2. f interest rates rise by 0.75%, this is the impact that it will have on our business, and this is what we will do to navigate these changes.
And so on, until every possible scenario has been considered and all outcomes have been understood.
By doing this, you can equip your business with the ability to be prepared for all possible outcomes before a rate rise even takes place. This helps to provide you and your team with increased confidence, especially during these uncertain times. It also ensures that you won’t get caught off guard and left unsure of what to do next.
Effective scenario planning requires efficient access to business data
Without the right business data, you cannot possibly determine the impact that a change or event will have on your business.
For example, if you want to determine the impact of interest rate rises, you first need accurate and up-to-date financial data to measure each possible rate increase.
To do this, you need a powerful digital data ecosystem that effectively collects and processes your business data in real-time to provide you with legitimate data sets for each area of your business.
Of course, this is easier said than done, and you certainly don’t have the time to build this ecosystem from scratch. So, how can you ensure that you’re getting the data that you need, when you need it, to practice scenario planning and safeguard your business for the future?
This is where Minerva can help
At Minerva, we can provide you with the solutions you need to build the foundations of effective scenario planning and shift your decision-making from reactive to proactive.
By providing you with direct access to your data at a granular level, we help you take back control of your business and make better and more strategic decisions for the future.
Minerva can make your business dynamic and agile.
With Minerva’s business and technology expertise, you’ll get access to tools and solutions needed to effectively execute scenario planning and stay prepared for whatever the future may bring.
We can work together with your organisation to understand your goals and requirements, before providing you with the right systems and procedures that you need to get the most out of your data and make better business decisions—helping you to become truly better at what you do.
If you’d like to learn more about how Minerva can help your business, contact us on 1800 646 378 or email info@minerva.com.au. For more great data management content, follow us on LinkedIn.
