10. Scenario Analysis
Description and Purpose
A scenario is a detailed description of what the future may look like. It is based on a set of assumptions that are critical to the evolution of an economy, industry, market, or technology. Scenario analysis is a structured way of developing multiple scenarios that help executives address two common decision-making errors—underprediction and overprediction of change. The objectives of scenario analysis are building a shared baseline for strategic thinking, enhancing flexibility in long-term planning, and providing strategic early warning.
This type of analysis has been in place for decades and is used extensively in a range of industries and by a variety of different organizations (business, not-for-profit, ...
Get The Complete Guide to Business Analytics (Collection) now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
