In this article you will find out how to do scenario analysis in Visyond – from creating scenarios by combining individual assumptions to comparing and analyzing different scenarios.
Scenario analysis shows how an output varies when input cells are driven by certain scenarios.
Creating a Scenario by using Scenario Recording Mode
If you need to change multiple cells and group them automatically into a scenario, activate a recording session and edit cells.
Click on the R (recording) next to the Scenarios button.
This will open the scenario recording panel.
If you record while a scenario is already selected, you will have three options:
- If you enter a name for the scenario and click on New From Base, you will create a new scenario starting from the Base Scenario (that has all cells set on their default case);
- If you enter a name for the scenario and click on New From Selected, you will create a new scenario starting from the currently selected scenario;
- If you click on Extend Scenario, you will edit the currently selected scenario.
You can edit the spreadsheet freely: the new assumptions will not overwrite the existing ones and will be automatically linked to the new scenario.
Press Save when you have finished editing.
You will be able to rename cases and scenarios after ending the recording session. Note the dropdown icons appearing after editing the cell. It indicates that now the cell has more than one value. See How to create Cases in Visyond and Cases, scenarios, collaboration (overview video).
Creating a Scenario by Capturing the Spreadsheet State
After you and your collaborators have added multiple Cases (assumptions) in cells, you can assign them to a scenario.
- Click on the Scenarios button.
- Inside the panel, enter a name and click on Add Scenario.
Once the cases selected in the grid have been grouped in a scenario, on top of the grid it will be clearly displayed the name of the scenario that is currently driving the cells in the grid.
Also the charts will display the scenario name under the title so that you will not be wondering under which assumptions you took that printout.
You can switch cases one at a time from the cases panel, or you can switch scenarios and observe how all the cases part of that scenario are set to the right value, making it a breeze to watch charts changing as scenarios are changed.
Combining Multiple Scenarios
You can also create new scenarios by combining two or more.
For example, let’s assume that:
- John created 2 scenarios that drive revenue assumptions
- Mary created 3 that drive cost assumptions
- Your believe that a realistic scenario is when Scenario 1 by John and Scenario 2 by Mary are simultaneously active.
In the Scenario panel:
- Click on the drop-down and select Scenario 1 by John and Scenario 2 by Mary
- Click on “Combine Scenarios”
The new scenario name will be an automatic concatenation (you can edit it) of the ones combined (e.g., “Scenario 1 & Scenario 2“).
Comparing Scenarios from the Scenario Drop-down and Panel
Click on the scenario drop-down to select scenarios and see changes in spreadsheets and charts.
You can also use the Scenario panel.
Switch Assumptions (cases) in the Cells Driven by a Scenario
In the Scenario panel, click on the “plus” icon next to a scenario to expand the list of cells that are driven by the scenario.
You can change the case via the drop-down or unlink the cell so that switching back to that scenario would have no effect on the cell.
Reset Current Scenario
If you want to reset all the cells in the spreadsheet on their default case, click on the button Reset Scenario inside the Scenario Panel.
The Scenario Analysis TAB
Clicking on the Scenario Tab, you can compare scenarios side by side, automatically generating a chart and a variance table ready to be printed or exported.
As usual, setting up this analysis requires only the selection of the output cells to analyse, the scenarios to compare, and one click on the button Compare Scenarios.
Comparing Ranges of Formula Cells
You can select ranges (for example the Cash flow row) and see a time-based comparison (for each period on the x-axis, you will see the value of the cash flow when the selected scenarios are active).
Comparing Individual Formula Cells
You can also select sparse cells individually and, for each scenario (on the x-axis), see the values of those cells when that scenario is active.
Below the scenario comparison chart you will find a table displaying the values you see in the chart and their percentage change compared to the scenario that is currently selected in the grid.
See Which Cells Make One or More Scenarios Different
Here you want to see the cells that cause differences among scenarios you want to compare, and hide those that are on the same assumptions.
- Go to Report/Overview Tab
- In the scenario section, select the scenarios you want to compare
- See them with all the cells that are not on their default assumption
- Now switch ON “Hide cells on same cases” and see only the cells that are NOT on the same case in all selected scenarios
Scenario Waterfall Analysis
Visyond offers an intuitive visual breakdown (in a waterfall chart) of what cells have changed between two scenarios and the contribution of each change to a selected output cell. In the example below, you can see what cells changed (and by how much) to take the NPV from its positive value in the “Growth” scenario to the negative value in the “in Demo” scenario.