Quality financial modelling takes time and attention to detail

Excel lets you tailor inputs, quickly change data and integrate with other software. But most analysts know that’s not enough. On its own, Excel doesn’t help you record changes or reproduce your work.

It doesn’t help you quickly test the many scenarios in your financial model, each made up of thousands of variables. And it doesn’t help when you need data to answer the questions posed by managers, executives or auditors.

When your work underpins critical business decisions, you need a tool tailored to your needs.

Why Lugano?

In today’s rapidly changing world Excel is the leading application for business modelling and what-ifs analysis. Excel has a rich function set and can create complex bespoke models, but the tools to run scenarios are wanting. The current built-in scenario manager is obsolete and unchanged since its introduction in 1994.

Consequently, users must add custom-made model structures and code to their models to run reliable what-ifs scenarios. These structures are then continuously reworked and adapted for new data combinations and permutations. Updating these structures within tight deadline is tough. Shortcuts are sought, some analysis is skipped, models must be re-checked to mitigate the risk of new errors.

Lugano is an integrated scenario manager, with auditing, reporting, and charting tools, allowing users to track and make their data change directly in the model with no need for complex code or lookup structure. Unlike the custom-made structures, Lugano scales up and can just as easily manage dozens or hundreds of versions or scenarios with thousands of data cells.

The Excel add-in that takes your work to the next level

Lugano does the things you always wanted to… (if only you had the time).

What is Lugano?

Lugano is an Excel add-in accessed through the Excel ribbon. Once Excel is launched a multi-functional Scenario form is opened to create versions, and build & run scenarios.

Lugano can records model data, including formulas, and update cells in any worksheet in any open workbook. Lugano can initiate the execution of user defined VBA routines, and log and chart all your changes and results.

Versions are created directly from the data in the model and are assembled to create scenarios using mouse drag & drop and context menu commands. Lugano runs offline on your local computer and all your data and metafiles are saved on your own drive.

How does Lugano work?

To create a scenario, you update selected cells in your model with the new version data, then select the range you have updated and use Lugano to capture the version data.

Once all the desired versions are captured, these are selected and added to your scenario. This process is then repeated for all your scenarios. Reporting commands are added as desired to track, report and chart all the changes you wish to monitor during scenario execution. Reports consist of charts or range of values selected by the user. During execution, the version values or formulas are added back to the model and the reporting data is updated and reports are created.

Each version is a step and your data changes (values and formulas) after each step can be recorded. Scenarios can be edited, copied, and repurposed. Versions and commands can be moved and updated. Scenarios can call other scenarios.

Your version data is saved in workbooks where it’s easy to access and review. The scenario structure and version properties are saved in separate metadata files.Lugano will work with your existing custom-made solutions. Implementing Lugano will enhance and bulletproof your models for more complex but unknown future scenarios.

How does Lugano work?

To create a scenario, you update selected cells in your model with the new version data, then select the range you have updated and use Lugano to capture the version data.

Once all the desired versions are captured, these are selected and added to your scenario. This process is then repeated for all your scenarios. Reporting commands are added as desired to track, report and chart all the changes you wish to monitor during scenario execution. Reports consist of charts or range of values selected by the user. During execution, the version values or formulas are added back to the model and the reporting data is updated and reports are created.

Each version is a step and your data changes (values and formulas) after each step can be recorded. Scenarios can be edited, copied, and repurposed. Versions and commands can be moved and updated. Scenarios can call other scenarios.

Your version data is saved in workbooks where it’s easy to access and review. The scenario structure and version properties are saved in separate metadata files.Lugano will work with your existing custom-made solutions. Implementing Lugano will enhance and bulletproof your models for more complex but unknown future scenarios.

Benefits of Lugano

Versions and scenarios can be added to your model “as is”, with only range names added and requires no programming from the user. Lugano can drive your existing scenario or dashboards. There is no built-in limit to the number or size of versions or scenarios.

You specify what model changes to record, and then track and replay these changes, create audit trails, logs, reports and chart the results. Use these reports to demonstrate that the scenarios are implemented correctly and are complete with no omissions.

Lugano is ideal for sandbox experimentation. By recording all your initial values, you can reset your model back to your start scenario. You may experiment on copies of your model, and any scenario of interest you develop can be added to your master scenario.

Lugano provides a highly systematic and reproducible approach to evaluating scenarios and is ideally suited to systematize the spreadsheet evaluation of corporate forecasting activities (M&A, strategic plans, budgets plans, ad hoc what-ifs, external disruptions).

Scenarios are created using an intuitive drag & drop, hot-key based context menus with navigation tools to find ranges and source data.

Scenarios can be saved in separate workbooks. You can share your model without your confidential scenarios, or you may save your versions in separate workbooks to reduce model bloat.

Scenarios can be developed collaboratively. Scenarios may be developed separately offline and merged into your master scenario.

Reviewers or auditors can track and replay your scenarios independently. They can add to your scenario or create new scenarios and reporting scripts to test the validity of the analysis.

Lugano facilitates the unscrambling of complex counter intuitive results. Results are broken down into bite size steps that are easy to comprehend based on the user’s preferred granularity, specifically how much or little data to record in each step. The user then analyses and explains the results for each simple step change. Logically if each small step change is evidently correct than the overall result is correct, and even if the result is still not evident it will now be understood.

This is analogous to a movie with each step represented by a frame in the film. Contentious sections are played back frame by frame (small steps with small amounts of data change) and well understood sections are played on fast forward (multiple steps or steps with numerous data changes are processed as a group). Similarly, Lugano includes equivalents to stopping, pausing, frame by frame play, re-play, and editing.

Why choose Lugano?

Work smarter.

Create robust financial models with ease.