Models and
Decision-Making
using Spreadsheet
Models
• Unit 5: Data Modelling
• Learning Aim A
• Scenario: Cheese Import
Company
, What is Data
Modelling?
• Data modelling is the process of organising
and structuring data so that it represents a
real-world situation.
• The purpose of data modelling is to allow
calculations and predictions to be made
about different possible outcomes. In
business, data modelling is commonly carried
out using spreadsheet software because it
allows large amounts of data to be processed,
analysed, and updated efficiently.
• A data model links related data together, such
as costs, sales, and exchange rates, so that
changes to one value automatically affect the
results. This makes it easier for users to
understand how different factors influence
decisions.
, Why Data Modelling
Supports Decision
Making
• Data modelling supports decision making by
providing accurate and structured information
that managers can rely on.
• Instead of making decisions based on
assumptions or intuition, managers can use
spreadsheet models to test different scenarios
and view the results before taking action.
• For example, a spreadsheet model can show
how changes in exchange rates or economic
conditions affect sales and profit. This reduces
risk, improves confidence in decisions, and
helps businesses choose the most effective
course of action.
, The Decision-Making
Process (Overview)
Typical stages:
The Decision-Making Process
• The decision-making process is a structured approach used to
identify problems, analyse information, and select the most
appropriate solution. This process is not limited to data modelling
but is especially important when developing spreadsheet models,
as decisions may need to be reviewed and refined multiple times.
• When using data modelling, spreadsheets support several stages
of the decision-making process by allowing data to be analysed,
alternatives to be tested, and outcomes to be predicted accurately
and efficiently.
Decision-Making
using Spreadsheet
Models
• Unit 5: Data Modelling
• Learning Aim A
• Scenario: Cheese Import
Company
, What is Data
Modelling?
• Data modelling is the process of organising
and structuring data so that it represents a
real-world situation.
• The purpose of data modelling is to allow
calculations and predictions to be made
about different possible outcomes. In
business, data modelling is commonly carried
out using spreadsheet software because it
allows large amounts of data to be processed,
analysed, and updated efficiently.
• A data model links related data together, such
as costs, sales, and exchange rates, so that
changes to one value automatically affect the
results. This makes it easier for users to
understand how different factors influence
decisions.
, Why Data Modelling
Supports Decision
Making
• Data modelling supports decision making by
providing accurate and structured information
that managers can rely on.
• Instead of making decisions based on
assumptions or intuition, managers can use
spreadsheet models to test different scenarios
and view the results before taking action.
• For example, a spreadsheet model can show
how changes in exchange rates or economic
conditions affect sales and profit. This reduces
risk, improves confidence in decisions, and
helps businesses choose the most effective
course of action.
, The Decision-Making
Process (Overview)
Typical stages:
The Decision-Making Process
• The decision-making process is a structured approach used to
identify problems, analyse information, and select the most
appropriate solution. This process is not limited to data modelling
but is especially important when developing spreadsheet models,
as decisions may need to be reviewed and refined multiple times.
• When using data modelling, spreadsheets support several stages
of the decision-making process by allowing data to be analysed,
alternatives to be tested, and outcomes to be predicted accurately
and efficiently.
