Financial Modeling

Strategic Scenario Simulation (S3) Models provide organizations a financial tool to quickly evaluate strategic options based upon a few key variables.

• The S3 Model is normally a simplified 10 year income statement comprised of 5 years of history and 5 years of future.

• The challenge is to define the future variables that reflect the different strategic scenario performance.

• Forcing the planning process to financially model different strategic scenarios requires thinking through major the financial elements and determine which are impacted by what scenario and at what magnitudes.

• S3 models have been developed for:

  • internet services

  • cybersecurity

  • high technology

  • aerospace & defense

    In each case, the S3 Model provided leadership greater clarity on their vision and highlighted areas of key risk.