A model is a structured representation of business logic constructed from an interconnected hierarchy of rows. Instead of using scattered formulas, a model organizes logic into a hierarchy of rows, where:
This approach ensures that your planning logic is centralized, transparent, scalable, and easier to maintain.
A driver model is a type of model in which the outputs are determined by key input variables called drivers. Drivers are the key inputs that influence business outcomes. Examples include units sold, price per unit, headcount, production volume, etc. These drivers are linked to outputs such as revenue, costs, or demand through formulas or proportional logic.
In a driver model, you first create a model with a hierarchical structure of connected rows representing business logic. Next, using the rows,
The following formulas illustrate how input drivers can be connected to business outcomes.
Revenue = Units Sold × Price
Total Cost = Headcount × Cost per EmployeeDriver-based modeling also aligns with allocation concepts, where values are distributed proportionally based on a driver’s relative contribution.
In Planning sheet, when you select Driver Model, the Model Builder is enabled.
Model Builder is a no-code, flexible interface for creating and managing advanced and driver-based models.
The image below shows the Model Builder interface before a model is built:
From here, you can create parent rows, add related line items as child rows, and define how values flow through the model.
The Model Builder supports a wide range of planning scenarios, including:
By organizing logic into a model, you can build reusable frameworks that adapt to changing business needs.
