The value cycle is a breakthrough idea in resource-based valuation. Resources must be the common denominator of any realistic planning approach. A resource language already exists – system dynamics (SD). But how does this approach link to the ultimate end measure - value?

The unique contribution of the value cycle is to create a coherent architecture to link strategy, finance and operational management to valuation. It extends the current SD method by linking all resources dynamically to the two fundamentals - cash and knowledge– that are the beginning (and the end) of every business enterprise. Cash and knowledge are ultimately all there is!

The value cycle provides a sound basis to connect short-term management actions and performance to long-term value creation. It also provides a clear basis to link strategy to organisational structure - via resources.

All resources - cash, physical resources and knowledge resources - can now be described, linked, quantified and simulated in value terms. The value cycle enables the planning, measurement and communication of value within a consistent and aligned strategy and finance framework.

The toolset is brought to life through advanced computer simulations. Valculus uses best of breed technology to develop value simulations (ValueSims) based on the industry/company knowledge and the strategic direction of senior managers.

In summary, ValueSims integrate strategy, finance and operational performance under the umbrella of valuation. They allow managers to experiment with alternative strategies and to ‘work through time’ to play out the progressive, logical, long-term consequences of their operational and investment decisions, in a risk-free environment.