Objectives

To understand the What-If Analysis.

What-If Analysis
The simulation of the outcome of various scenarios and alternatives when changes to the inputs and parameters are done. Supports managerial decision-making and longterm planning. The process of evaluating alternative strategies. Is scenario building capability of OLAP Used to evaluate the effects on the performance determined by variations in the control variables and changes in the parameters.

This is what you do in what-if analysis:

Create a what-if calculation model: Creating different set of what-if scenarios:

Create a what-if calculation model:

This is the calculation model on which you are going to apply different scenarios. A calculation model takes a set of input values, to give the set of out-put values. Consist of each different set of these 'input and output value combinations. Example: Profit and loss projection for next 5 years.

Creating different set of what-if scenarios:

Depending upon your needs you can build different scenarios of input values, and you can apply those scenarios on the calculation model, and generate the output values.
Let's say that you have Profit and Loss projections for next 5 years as the calculation model. Following can be some of the inputs values to the model: a) Revenue on year 0 b) Expected revenue rate of growth CAGR (cumulative average growth rate) c) Gross profit margin % d) Non-operating expenses. e) Income tax rate f) Rate of Dividend.Etc..
The output values can include: a) Revenue b) Gross margin c) Operating margin d) Profit before Tax e) Profit after tax f) Allocation to reserves.

How what-if analysis works in OLAP

Combination of a good End-User Tool and OLAP server. An OLAP tool will have an End-User Tool sitting on top of the OLAP server (like MS Excel or a business modeling tool). You will create a calculation model in the modeling tool, and the input and output data for each scenario is stored in OLAP (OLAP Server).

Just What is BI?

Microsofts vision of BI using SQL Server 2005 is defined as a method of storing and presenting key enterprise data so that anyone in your company can quickly and easily ask questions of accurate and timely data.

Effective BI
Allows end users to use data to understand why your business got the particular results that it did, to decide on courses of action based on past data, and to accurately forecast future results.

BI Data
Is displayed in a fashion that is appropriate to each type of user, i.e. analysts will be able to drill into detailed data, executives will see timely summaries, and middle managers will see data presented at the level of detail that they need to make good business decisions. Microsofts BI uses cubes, rather than tables, to store information and presents information via reports. The reports can be presented to end users in a variety of formats:Windows applications, Web Applications, and Microsoft BI client tools, such as Excel or SQL Reporting Services.