Value Driver Trees

A value driver tree, also known as VDT, is a tool for budgeting, forecasting based on different scenarios, and making daily business decisions.

By linking different types of nodes together in a directed graph, value driver trees allow you to explore the relationship between drivers such as head count and average contract value and top line metrics such as gross revenue.

For example, a simple value driver tree might show how changes in year over year (YOY) growth in sales across different accounts will impact overall sales revenue now, and in future years.

Therefore, a value driver tree can help align decision makers in different organizations or at different levels, focusing the business on a common overall goal.

In SAP Analytics Cloud, value driver trees are made up of different types of nodes, which can bring in data from a model and perform calculations on that data. You build this calculation flow in a section of the Modeler, which also allows you to simultaneously view and update the model data in a table. As you work on the calculation flow, you also copy the nodes to a consumption flow that will be presented in stories. The consumption flow allows you to streamline the value driver tree for easier analysis.

When a value driver tree is complete, you add it to stories for analysis. For example, you might add a value driver tree and a table based on the same model to a story page. To simulate different scenarios, you can choose the version and currency that the value driver tree displays, and recalculate its values after changing values in the table. Because value driver trees allow simulations and present a streamlined view of your data, they can be helpful to include in a Digital Boardroom agenda or dashboard.