What is value driver tree in SAP FIN-SEM-CPM - Corporate Performance Monitor?

SAP Term: value driver tree

• Component: FIN-SEM-CPM

• Component Name: Corporate Performance Monitor

• Description: Causal links between value drivers. The causal links show mathematical relations as well as associative relations between value drivers.

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• Key Concepts: 
  Value driver tree is a feature of the Corporate Performance Monitor (CPM) component of SAP. It is a graphical representation of the relationships between different business drivers and their impact on financial performance. It allows users to identify the most important drivers of value and to track their performance over time. 
  
  How to use it: 
  The value driver tree can be used to identify the most important drivers of value in an organization. It can also be used to track the performance of these drivers over time. The tree can be used to identify areas where performance can be improved, as well as areas where performance is already strong. 
  
  Tips & Tricks: 
  When creating a value driver tree, it is important to consider the relationships between different drivers and their impact on financial performance. This will help ensure that the tree accurately reflects the organization’s performance. Additionally, it is important to regularly review and update the tree as changes in the organization’s environment occur. 
  
  Related Information: 
  The Corporate Performance Monitor (CPM) component of SAP provides additional features that can be used in conjunction with the value driver tree. These features include budgeting, forecasting, and reporting capabilities that can help organizations better understand their financial performance. Additionally, CPM provides tools for analyzing data and creating visualizations that can help organizations better understand their performance and make informed decisions.