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Part 2 of the Value Simulator

Estimated gross financial value of 5-unit OEI increases = 5 million

ACTUAL SIMULATION
Score Impact
on OEI
Target score Diff Gross
financial
value
Cost of actions NET
FINAN.
VALUE
1.Products & services 70 1.9 74 4 1.5 1.1 0.4
The second part of the value simulation starts from the estimated gross financial value of 5-unit OEI increases as estimated in the first part of the simulator.

For each of the factors, the table includes present scores and impacts. Enter a target score, and the gross financial value for that score change is calculated. Enter the estimated cost for the action, and the net financial value is calculated.

Note that the appropriate target scores and costs are management decisions and can't be extracted from a survey.

Also note that the survey and the econometric analysis can't estimate how long it will take for the action to result in a financial performance improvement. It is sometimes claimed that it takes three months from a change in perception to a change in behaviour, but there is no rule for how long it takes to take an action and then to make it perceived by the target segment.

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