This PPT slide, part of the 96-slide Dynamic Business Modeling PowerPoint presentation, presents a comparison between a typical static model structure and a scenario-based model approach. It emphasizes the need for a dynamic framework that can efficiently store and recall different scenarios while summarizing the results. The left section outlines the components of a static model, including an assumption sheet detailing key variables like market growth rate, market share, and operational expenses. Each of these variables is assigned specific values, which serve as inputs for the calculation modules on the right.

The calculation modules convert these assumptions into outputs, including market size, revenue, cost of goods sold (COGS), operational expenses (OpEx), operating income (OpIncome), and internal rate of return (IRR). The output summary sheet displays these results, highlighting how the model generates various financial metrics based on the input assumptions.

The slide also notes the limitations of static models, particularly their inability to easily test different values for key assumptions. It points out that manual re-keying of values is cumbersome and that the results are not readily accessible for comparison across scenarios. This lack of flexibility can hinder decision-making processes.

The callout at the bottom emphasizes 3 critical functionalities that a scenario-based model should provide: the ability to store scenarios, recall them conveniently, and summarize outputs across all scenarios. This shift towards a more dynamic modeling approach is crucial for organizations looking to enhance their strategic planning and responsiveness to market changes.

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