We’re getting specific today and really showcasing the analytical power of Power BI. Sensitivity analysis, or even running some ‘what ifs’ around this, allows you to almost predict what may happen in the future with your results. In this example I want to see what will happen to my profitability if I am able to increase the gross margin on my sales.
While you might think this is quite niche, which it is, it’s the techniques to get to these results which I always want to get across with these examples. As soon as you learn how to implement this, you’ll likely identify three to five other ways you can use it to find valuable insights, and that where I want to get you to.
There are ultimately so many things you could run sensitivity analysis on as well. And try to think about showcasing not just the immediate results, but think of the second or third order effects that changing a variable inside your calculated results will create. In my example in the video, I’m not interested in just the straight change in profits from a change in gross margin – I’m actually looking for the percentage change in profits.
You’ll see that it’s always going to be much larger than the scenario change you place into it. This is terrific insight that a CFO and employees at board level would want to understand about your results, or potential future results for that matter.
I also show you in this video a little trick around getting your sensitivity visualization sorted out so that they fit into you reports well. Definitely check it out to learn more.
If you want to see how I develop and build reports from scratch, you can check out my Dashboarding and Visualisation Intensive course. It’s here that I show you, end to end, how to develop compelling Power BI solutions, combining techniques just like this one into a all-encompassing analytical report.
Got some thoughts or feedback on this technique? Let me know in the comments. Good luck implementing this one.