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The right approach
ОглавлениеThe right approach to modelling is a holistic one taking into account all of the issues surrounding the modelling problem – financial, technical and human – and not just some of the financial and technical ones.
The approach I propose in this book covers the following areas:
Financial & legal – dealing with the theoretical financial, commercial and legal issues, and solutions:
the project characteristics and legal entities involved
the industry characteristics
the macro economy
the government
strategic or operating solutions
seeding the future with the past
the relative importance of cash and accounting.
Technical:
using Excel
using a computer
using other software (the minimum required).
Human:
managing the build
managing model control
managing model delivery
checking the model for errors.
This approach is illustrated in Figure 1.