Detailed method of and system for modeling and analyzing business improvement programs

A computer readable medium having sequences of instructions stored therein, which when executed cause a processor to perform a method for estimating the impact of specified changes in the value drivers of an enterprise on a component of value of said enterprise, comprising:

• obtaining data related to the value of the business enterprise, identifying the causal enterprise value drivers;
• determining, for each one of the causal value drivers, a percentage of each component of value attributable to the causal value driver;
• defining a probabilistic financial simulation model for a component of value;
• simulating the impact of the specified changes in value drivers on the component of value;

A computer system, comprising:

• a processor having circuitry to execute instructions;
• a means for accepting user specified changes in value drivers;
• a storage device coupled to the processor and having sequences of instructions stored therein, which when executed cause the processor to,
• obtain data related to a value of a business enterprise,
• identify the causal enterprise value drivers;
• determine, for each one of the causal value drivers, a percentage of each component of value attributable to the causal value driver;
• define a probabilistic financial simulation model for a component of value;
• and
• simulate the impact of the specified changes in value drivers on the component of value.

A computer-implemented method for identifying the changes in value drivers of an enterprise that will achieve a pre-defined financial goal for a component of value of said enterprise, comprising:

• obtaining data related to the value of the business enterprise including a revenue component, an expense component and a capital component;
• identifying the causal enterprise value drivers;
• determining, for each one of the causal value drivers, a percentage of each component of value attributable to the causal value driver;
• defining a probabilistic financial simulation model for a component of value;
• and
• identifying the changes in value drivers that will achieve the pre-defined financial goal for the component of value.

A computer-implemented method for identifying the proper method for completing element of value valuations as a function of the level of interaction between value drivers by element of value, comprising:

• obtaining data related to the value of the business enterprise including a revenue component, an expense component and a capital component;
• identifying the causal enterprise value drivers;
• determining, for each one of the causal value drivers, the level of interaction by element of value;
• and
• using the method that sums value drivers by element when interaction is low and using composite variables for each element when interaction is high.