The healthcare sector has many decision support needs that relate to valuation, economic and risk modelling and related advanced quantitative approaches, including:
- Creating clarity of cases being shown by existing plans, and of the true range of possible outcomes (e.g. for revenues, given the uncertainty both for establish products, and those in development)
- Identifying where gaps may exist (e.g. in portfolio structure if long-term risk-based view shows wider gaps than short-term base cases)
- Creating a transparent process to ensure that risk/uncertainty profiles of projects are considered
- Forcing an explicit distinction between base case assumptions and the possible range of outcomes
- Establishing a basis for reflecting different risk/uncertainty profiles across projects or other activities
- Identifying opportunities to improve planning processes (e.g. free up capital, by capturing the benefits of diversification and reducing “resource-hoarding”)
- Optimising deployment of capital for future growth
- Identifying gaps in investor communications
- Understanding the likely ranges for KPIs at a product, product group and portfolio level, and the likelihood that any base forecast or internal plan can be achieved e.g.
- How optimistic/pessimistic are these plans?
- What are the main reasons for the differences?
- Is there too much/too little contingency in our planning?
- Can resources can be freed up or new projects authorised from existing budgets?
- Do we need to find or consider additional projects (organic/non-organic)?
- What is the best way to allocate resources (and contingencies) to benefit from diversification and reduce resource-hoarding?
Contact Us for more information on possible consulting or training engagements.