Value Creation Strategies (V.C.S.) is a Value Scout feature that correlates completing an objective and initiative to an estimated amount of value creation. There are two modes when using V.C.S; basic and advanced.

### Basic Mode

The basic V.C.S. approach **is not** driven by an algorithm. Therefore, the estimated value impact is input by business owners, advisors, and their teams.

**Advanced Mode**

The advanced V.C.S. approach uses an algorithm to calculate how much estimated value will be created upon an objective's completion. There are five V.C.S.; strategies: revenue, gross margin, cost out, acquisition, and de-risk. Read Value Creation Strategies to learn more.

**Best Practice: Basic vs. Advanced**

At the end of the day, both basic and advanced accomplish the same task: assigning a value to a specific objective or initiative. . Using the basic V.C.S. approach is simply user input, which for even the most experienced individuals is a guess. Remember, V.C.S. is not projecting revenue or your profit margins, but value.

This is why we suggest using the advanced V.C.S. approach when applicable. The advanced mode measures how much value an objective or initiative will create based on valuation fundamentals and the subject company's historical performance. The advanced V.C.S. approaches algorithm is also designed to provide a better estimate over time.