What-If Analysis: The Key to Unlocking the Opportunity in Uncertainty
Nobody knows your business like you do. You have an understanding of the key drivers of your operations, an awareness of the challenges and opportunities present in your business landscape, and a clear idea of what you need to do to reach your business goals. But there’s one thing you don’t know: The future.
Nobody knows the future. It’s a cliché, but it’s true. There is no crystal ball through which you can see exactly what the future holds for your business. This is especially in today’s business world, where volatility and uncertainty reign supreme.
To proactively plan and prepare for the future amidst such volatility and uncertainty, your company needs to be able to leverage real- time (along with historical) data as well as your own business expertise and experience to find solutions to your business problems and make decisions. Mathematical optimization is an AI tool that empowers you to do exactly that.
One feature of mathematical optimization that is particularly useful in helping you to handle uncertainty and volatility is What-If Analysis (which is also known as Scenario Analysis).
In this management paper, we explain what “What-If Analysis” is and explore how it can benefit your business.