Perspectives™

Advanced Portfolio Optimization &

Uncertainty Analysis

Gain insight into your performance potential and

strategic alternatives
Perspectives™ is an analytic platform for evaluating decisions related to strategy development, portfolio management,
capital allocation, and M&A. Perspectives brings together data, business goals, assumptions and constraints to address
decisions involving risk or uncertainty.

Integrated, Predictive
Business Modeling
• Model strategic, operational and
financial plans

• Review business unit plans and

budgets tied to specific initiatives
and operations

• Quickly assess how changes in one

area would impact others, through
interconnected plans

• Identify opportunities and challenges

based on the interactions among
your current business, opportunities,
leading indicators and
business drivers

Constraint Based Optimization

• Quickly sort through thousands or millions of options and combinations

• Identify the optimal mix and timing of new projects, expansions, cutbacks, acquisitions R&D, and alliances

• Optimize performance from a financial and/or operational perspective, considering multiple goals and constraints,
and then easily derive budgets from that plan

Evaluation of Risk and Uncertainty

• Use predictive analytics to understand if you can succeed given the uncertainties in your business

• Quantify the probability that specific objectives will be met and see the range of probable outcomes

• Analyze how different assumptions for factors such as price, costs, timing or market uncertainty affect your ability
to succeed

Experience Perspectives software for yourself with a customized

demonstration or no-obligation proof-of-concept.
info@3esi.com · www.3esi.com
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 Perspectives™
Advanced Portfolio Optimization &
Uncertainty Analysis

Input Data: Business Components

• Business components to be modeled (projects, products, assets, lines of business, etc.) link investments, key
resources required, outcomes, market assumptions etc. into a logical decision unit. They are described with time
series financial and operational information

• Business components may be extremely well understood and part of the existing business, or they may be a
“surrogate” or “analog” for a potential opportunity

Optimization
• The optimization uses company numeric goals over time
as constraints. The goals are customizable and usually
include items such as growth, cash flow, net income,
ROCE, operational measures etc.

• The optimization seeks a solution so that all goals can be

met in all time periods specified and, given this context, a
metric of your choice reaches its maximum value

• Financial and/or operational factors can be incorporated

into the optimization as the objective function or
as constraints
Dependencies • The optimization algorithm will build business portfolios
• The model enables dependencies and rule building, by choosing or rejecting business components, selecting
so that it can approximate practical situations timing, and selecting working interest if applicable, all
within user-defined limits
• Dependencies can also reflect probabilistic
relationships. For example, if a pilot project is
selected but the outcome (in a Monte Carlo
simulation) is“Failure”, then all projects that are
dependent upon the pilot do not contribute to the
aggregate forecast

• Custom dependencies can be built beyond the

library of existing options

Risk and Uncertainty

• Risked input can be based on forecast uncertainty,
probability of closing new deals, probability of
technical failure, uncertainty regarding time to
commercialization, etc.

• Risked output includes

- Probability of achieving all targets in all time frames, calculated using stochastic input (multiple outcomes) and
a simulation routine.
- Ranges of uncertainty in aggregate performance across time. (“How good could it be? And how bad could
it be?”)

Extensibility
• Perspectives gives users the ability to customize a model to meet the specific needs of decision makers and
business challenges. Users frequently extend their models by creating integrated financial statements, additional
graphs, and custom reports.

Calgary Houston Bogota Barcelona Dubai APAC Abingdon

Canada USA Colombia Spain UAE New Zealand UK
+1.403.270.3270 +1.823.456.0000 +57.301.660.2811 +34.932.018.872 +97.150.651.2403 +64.9489.7560 +44.7710.918.417