scenario modelling and planning at csr · scenario modelling and planning at csr csr is one of the...
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Scenario modelling and planning at CSRCSR is one of the most innovative companies working in the UK today, designing software and chips for the high-tech micro-electronic devices powering a range of consumer and other products.
In response to the challenges of commercial planning in an extremely fast-moving and competitive market, Metapraxis designed a comprehensive planning and scenario modelling tool to help management optimise return on investment across the business.
CSR was acquired by Qualcomm Global Trading Pte. Ltd, a subsidiary of Qualcomm Inc.
BackgroundCSR designs and develops the chips and software that power connectivity, location and audio technology in the consumer electronics, healthcare and automotive industries.
Before its acquisition by Qualcomm in 2015, CSR was a constituent of the FTSE 250 Index, with revenues of over £800m.
ChallengeCSR operates in a highly competitive, fast moving market. Research and development is key to the company’s success, as is the optimisation of pricing and volume in response to market developments.
The company had access to a wealth of data but, with no unifying model, creating reliable insights and consistent plans was difficult and time consuming.
SolutionTo help CSR’s leadership team plan with confidence, Metapraxis worked with the leadership of the company to design a driver-based model, identifying the strategic priorities of the business, and the factors influencing their success.
Once the driver model was agreed upon, the Metapraxis team captured it as a metadata layer in our Empower analytics software, and then connected the relevant data sources.
This enabled the production of automated reporting for senior management, in a manner more clearly focused on strategic objectives than was previously possible.
The next step was to build an interactive planning tool to guide forward-looking management and investment decisions. This began by integrating forecasts with actuals and budgets, and then creating a user interface that allowed the management team to test a range of assumptions, and their impact on long-term results.
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The ability to test how scenarios are likely to play out is a powerful management tool. Crucially, this is done within the context of the driver model, which ties all scenarios together, and ensures that the impact of changes at the regional, divisional or product scale can be instantly assessed at the group level.
BenefitsThe business driver model enabled the production of automated reporting within two months, and the scenario planning tool was optimised and in use within four months.
With reports and planning powered by a unifying driver model, the company’s overall strategy is based on more focused, higher-quality inputs. This means that future performance can be assessed objectively, and investment decisions made with confidence.
“…much more of a forward focus, especially on key product and customer trends. As a result, Board discussions are grounded in the facts and decision-making processes are much faster, accelerating the delivery of shareholder value”. Andrew Allner, NED and Audit Committee Chairman
About MetapraxisMetapraxis provides strategic analytics solutions to some of the world’s most complex organisations, including WPP, Thomson Reuters, Reed Business Information, Newell Brands and Kloeckner Metals Ltd.