What action can improve model performance in SAP Analytics Cloud?

Using flat hierarchies can significantly improve model performance in SAP Analytics Cloud because flat hierarchies simplify the data structure and reduce the complexity involved in data aggregation and retrieval. In a flat hierarchy, all data points are on a single level, which means that the system does not have to navigate through multiple levels of aggregation to obtain the necessary information.

This streamlined structure minimizes the processing time when queries are run, leading to quicker response times and more efficient use of computing resources. In contrast, complex hierarchies with multiple levels can be resource-intensive to manage and can slow down performance due to the extra computations required during data access and analysis.

By opting for flat hierarchies, users can enhance both the speed and efficiency of their data models, making it easier to access and analyze data without sacrificing detail or accuracy.