What-if Analysis

What-if Analysis is a brainstorming tool used in business intelligence to predict the outcome of a scenario by changing different variables. Imagine you’re playing a video game where you can change your character’s skills to see if you can beat a level more easily. In business, it’s similar: you change some numbers around—like the cost of materials or the amount you charge for a product—to see how it could affect your company’s future.

This type of analysis is especially valuable when a business is faced with decisions where the outcomes aren’t clear. By using data analytics software, companies can simulate different situations, such as “What if we decrease the production cost by 10%?” or “What if the market demand increases by 20%?” Answering these questions helps businesses prepare for various possibilities, plan their budgets, and make strategic decisions more confidently.

Thanks to What-if Analysis, companies can look before they leap. Instead of guessing the outcomes of their actions, they can use data to explore potential consequences. This way, they’re less likely to be caught off guard by changes in the market or their own business decisions, and they can steer their operations toward the best possible results.