The value driver tree is used to simplify various analysis and planning scenarios in the company. Until recently, however, it was difficult to implement value driver planning with IT systems. This is because trees with several hundred or even over a thousand nodes, which are also called up by several users at the same time, require considerable computing power. However, thanks to new technologies such as in-memory computing and computing resources from the cloud, complex value driver trees can now be built without difficulty.
Today, value driver trees are therefore being used more and more frequently in various areas of a company - for example in sales, finance and controlling. They are particularly popular because of their intuitive, visual arrangement of nodes, which illustrate relationships. Many tools now support the self-service concept. This means that users can create their own value driver trees without the need for IT support.
In practice, the value driver tree primarily helps to make corporate planning more dynamic and intuitive. This is achieved because the approach makes it possible to quickly generate new forecasts and thus improve responsiveness. All in all, planning and budgeting cycles can be shortened and streamlined.