Product Viability Model - Consolidation

Product Viability Model – Consolidation

£145.00

 

 

The Product Viability Model (PVM) has been meticulously designed  to offer a thorough financial perspective of new and existing products, ensuring businesses have a well-rounded view of their product’s potential performance before expensive mistakes are made. It goes without saying, that understanding the financial prospects and commercial viability of a new / existing product is paramount to the making of compelling arguments and key strategic decisions. So with this model and with relative ease, comprehensive financial plans can be created, sensitivities analysed and subsequent business rationale made with absolute confidence.

 

  • Consolidate up to 6 Product Viability Models
  • Easy to use professional Product Viability Modelling
  • Easy data entry – Direct or linked with your own data sheets or other business models
  • Comprehensive Discounted Cashflow analysis – comprehensive professional financial planning
  • Dependable, Confidential and Secure files – Username, Password and secure online verification
  • Business model design architecture enables easy alignment to your company / business with relative ease
  • Fully variable +/- plan sensitivity controls – drives interactive multidisciplinary discussion
  • Full Discounted Cashflow analysis and two ‘Sensitivity’ plans – Baseline and 2 delta ‘case’ scenarios
  • Automatically generates 10 key financial ratios (Baseline and Scenarios) – can be used directly as plan objectives / KPI’s
  • The ability to run unlimited ‘what if scenarios’ during a live presentation – Robust strategic analysis at its best
  • Compelling financial results generated in real time – perfect for business plans
  • Professional Product LifeCycle Management – Strategic proactive alignment

 

The Product Viability Model, with its multi-faceted and robust structure, offers businesses a granular view of their product’s financial potential. By examining both fixed and variable costs, revenue streams, and performing an in-depth sensitivity analysis, businesses are well-equipped to make informed decisions about product launches, investments, and market strategies.

Consolidation and Sensitivity Analysis

The consolidation model allows up to six PVMs to be merged, providing a comprehensive view of a product portfolio over a defined timeframe block across six periods (years). The consolidated results are presented as a total summary where further sensitivities can be applied via variable sliders across eleven parameters. The generated sensitivities are then presented as Scenario 1 and Scenario 2.

The Product Viability Model has been developed with attention to detail, and if further reassurance is needed, it has been thoroughly ‘real world’ tested by our long-standing clients.

Professional business modelling for ‘Strategic Thinkers, Innovators and Direction Setters’.

 

 

SKU: product-viability-model-ver-2-1 Category:

Description

Product Viability – Consolidation Model Overview

Introduction

In the modern business landscape, understanding the financial prospects and viability of a product is paramount to successful market entry and sustainability. The Product Viability Model (PVM) is tailored to offer a thorough financial perspective, ensuring businesses have a well-rounded view of their product’s potential performance. The Product Viability – Consolidation Model extends this capability by consolidating up to six Product Viability Models (PVMs) into a single, comprehensive overview. This model facilitates in-depth hypotheses and strategic decisions through consolidated financial data and sensitivity analysis.

Model Architecture

Sales Channels

The model bifurcates sales into two channels: Direct Sales and Indirect Sales. Here, you’ll input the forecasted number of products to be sold against the market potential, culminating in the total projected revenue.

Manufacturing and Cost of Sales

This section addresses manufacturing costs, direct cost of sales, and indirect cost of sales. The resultant total revenue minus the variable cost of sales provides the Gross Margin (GM).

Fixed Costs

Fixed costs are segmented into development costs (inclusive of capital expenditure), direct SG&A costs, and indirect SG&A costs. The summation of these provides the Total SG&A Costs.

Working Capital Analysis

This includes an assessment of creditors, debtors, and inventory costs.

Project Summary

The model gives a clear snapshot of:

GM1: Revenue minus Manufacturing Costs

GM2: GM1 minus Cost of Sales (COGS)

Net Profit: GM2 minus Total SG&A

Financial Projections

A holistic summary sheet provides insights into Net Present Value (NPV) and projects discounted cash flows. Cumulative discounted cash flow, standalone cash flow, and profit are also graphed for visual understanding.

Consolidation and Sensitivity Analysis

The consolidation model allows up to six PVMs to be merged, providing a comprehensive view of a product portfolio over a defined timeframe block across six periods (years). The consolidated results are presented as a total summary where further sensitivities can be applied via variable sliders across eleven parameters. The generated sensitivities are then presented as Scenario 1 and Scenario 2.

Graphical Presentation

The model includes graphing capabilities to present the expected Revenue, Profit, Cashflow, and Discounted Cashflow. This visual representation aids in understanding the financial trajectory and viability of the products.

Sensitivity Analysis

Beyond foundational calculations, the PVM delves deep into sensitivity analysis. Twelve plan variables are tested under best and worst-case scenarios, pinpointing the most financially volatile components of the plan. Results are laid out for the Baseline Plan, Sensitivity Scenario 1, and Sensitivity Scenario 2.

Resultant Overview

The Product Viability Model, with its multifaceted and robust structure, offers businesses a granular view of their product’s financial potential. By examining both fixed and variable costs and revenue streams and performing an in-depth sensitivity analysis, businesses are well-equipped to make informed decisions about product launches, investments, and market strategies. This model serves as an indispensable tool for businesses aiming for strategic and financial acumen in the ever-evolving market landscape.

 

 

Overview Graphics / Screenshots:

 

PV Consolidation Architecture

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PV Model Sensitivity Analysis – Best and Worst Case Scenario’s

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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