Layered Scenario Management in Financial Data Flow Networks
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Solution Overview
Problem
Conventional financial planning models are complex and prone to permanent alterations when managing multiple scenarios, compromising the integrity of the computational model due to the difficulty in maintaining and comparing different financial projections and sensitivity analyses.
Innovation Solution
A software system that allows cell content alterations to be controlled as separate layers, enabling and disabling formulas on a layer-by-layer basis to create and manage alternative scenarios without altering the underlying model, using a data flow network with nested formulas to produce single values for each cell.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If conventional spreadsheet programs are used to manage complex financial planning models, then financial projections can be generated, but the model integrity is compromised when multiple scenarios are managed due to difficulty in maintaining and comparing different financial projections
Solution Approach 1:
The patent segments the financial model into multiple independent versions, each representing a different scenario or alternative. Each version contains its own set of cells, formulas, and data, allowing simultaneous management of multiple financial projections without interference. This segmentation enables users to create, compare, and switch between different scenario versions while maintaining the integrity of each individual model.
Solution Approach 2:
The patent implements a nested structure where multiple scenario versions are contained within a parent financial model framework. Each version nests its own formulas and data within the overall model structure, allowing hierarchical organization where version-specific modifications are encapsulated without affecting the underlying model architecture or other versions.
2Adaptability or versatility
If formulas are altered in spreadsheet cells to create alternative scenarios, then different financial projections can be generated, but permanent alterations occur compromising the original model
Solution Approach 1:
The patent performs preliminary actions by creating complete duplicate versions of the financial model before any scenario-specific modifications are made. Each version is pre-configured with its own independent formula set, allowing users to explore alternative scenarios without risking changes to the original model structure. This preliminary duplication ensures that all subsequent modifications occur in isolated environments.
Solution Approach 2:
The patent creates exact copies of the financial model for each scenario version. Each copied version contains identical initial formulas and structure, which can then be independently modified to represent different scenarios. The copying mechanism ensures that original model integrity is preserved while enabling extensive scenario variations through the use of multiple identical templates.
3Adaptability or versatility
If multiple models are copied and altered to represent different scenarios, then alternative financial projections can be created, but maintaining consistency across models becomes difficult
Solution Approach 1:
The patent creates a universal parent model structure that serves multiple functions: it acts as the template for generating all scenario versions, provides the master formula definitions, and enables centralized management of all variations. This multi-functional approach allows a single model architecture to support diverse scenario needs while maintaining consistency through shared structural elements and centralized control mechanisms.
Data Source
AI summary
A method and apparatus create a way of controlling alternative values of cell contents of a data flow network. Alternative values are computed from alternative formulas, which may be turned on and off in separate layers. Typically, one formula is provided for each layer for each cell of the data flow network. Layers can be grouped together to model different scenarios and can be added or removed.