A Value Driver Tree (VDT) is a visual planning tool in SAP Analytics Cloud that helps you understand how changes in one part of your business can impact other areas. It connects key metrics like revenue, cost, and margin to show cause-and-effect relationships and lets you simulate different planning scenarios in real time.
Whether you’re building a forecast, modeling strategic options, or preparing for executive review, VDTs provide a clear, interactive way to explore your data.
What Is a Value Driver Tree?
A Value Driver Tree is a visual model made up of linked “nodes.” Each node represents a key metric. Each representing a business measure—such as gross sales, labor cost, or profit. These nodes are connected to show how values flow from one part of the business to another. When you update a value in one node, the tree automatically reflects how that change affects connected values. You can use VDTs for:
- Strategic planning
- Forecasting
- Scenario modeling
- Executive decision support
Example
- ou increase projected sales volume in a region, and the VDT instantly shows how that affects gross revenue, cost of goods sold, and net income.
Why Use a Value Driver Tree?
| Benefit | Description |
|---|---|
|
Scenario modeling |
Test different assumptions and instantly see the downstream impact |
|
Visual storytelling |
Help leadership and stakeholders understand drivers and trade-offs |
|
Driver-based planning |
Shift away from manual spreadsheets and plan based on cause-effect logic |
|
Real-time insights |
Use current model data and predictive logic to simulate changes quickly |
Common Use Cases
- Sales Planning: Adjust unit price or volume and see how it affects total revenue and gross margin
- Expense Forecasting: Model changes in marketing or headcount and assess their impact on profitability
- Strategic Planning: Visualize how multiple departments influence company-wide outcomes
- Board Presentations: Present clean, interactive visuals with top-down and bottom-up data flows
Key Features
- Node customization: Choose which account or measure to show in each node
- Interactive updates: Use sliders, manual input, or formulas to simulate value changes
- Hierarchy navigation: Drill into or collapse sections of the tree for easier focus
- Data entry support: Plan directly in the tree, with changes reflected in the model
- Auto-calculation: SAC automatically recalculates values based on the relationships defined
User Access & Requirements
| Role | Capabilities |
|---|---|
|
Planning users |
Can create, edit, simulate, and publish value changes |
|
BI users |
Can create and view value driver trees, but cannot publish data back to the model |
|
Executives & stakeholders |
Can use view-only trees during presentations for decision-making support |
