S&OIS’s budget advantages are enabled by its three budgeting paradigm inversions from the traditional budget:
- Income statement cause or effect: The traditional budget causes the traditional income statement. The opposite is true for the S&OIS. It causes the S&OIS budget by simply adding the firm’s strictly fixed costs to it.
- Profit cause or effect: Profit is an effect for traditional budget= revenue-costs. S&OIS is the opposite; its profit causes its revenue and costs.
- Analytics: The traditional budget’s analytics are predictive; what is the result if X happens. S&OIS’s analytics are prescriptive; what is the best possible result.