Different Business Forecasting Methods
different business forecasting methods
business intelligence guide
Business intelligence can be defined as a set of business processes designed to garner and analyze business information. It is a vast category of application of programs that includes providing access to data to help an entrepreneur in his business decisions, task of query and reporting, online analytical processing (OLAP), statistical analysis, forecasting and data mining.
Big and small companies collect information to assess the business environment i.e. to acquire a sustainable competitive advantage in the business environment and also cover the areas of marketing research, industry research and competitive analysis. Every business intelligence system has a particular purpose (be it short term or a long term purpose) based on a vision statement or organizational goal.
Business intelligence involves different strategies. The BI task can be handled with the aid of application software. Application software is broadly categorized under class of computer software that enables a computer to function in accordance with what the user desires. The application software is different from the system software that integrates different capabilities of the computer but these are not directly applied to the benefit of the user. The application software is designed to help people be prudent in taking decisions by imparting them accurate, current and requisite information. This is precisely the reason that business intelligence is also referred to as ‘decision-support system’ or DSS.
While framing and implementing a business intelligence program there are several crucial points to be borne in mind.
a) The goal or the purpose of the program, in simple terms the goal of the organization that the program will address should be considered. There should be a rough idea of how can the program will lead to better results.
b) Secondly the expense of adopting a new business intelligence program should be estimated. Along with this the risk involved in the business intelligence program should also be calculated and so planning should be done accordingly.
c) A person should also know that who all will be direct and indirect beneficiaries and who will pay for the initiative. Also see what will be the quantitative and qualitative benefits and about employees, shareholders, distribution channels etc.
d) The information so gathered must be tracked into well-defined metrics. A person should be sure of the kind of metrics adopted, its standardization and its performance.
e) A person should establish a procedure to reach the ideal way of measuring the requisite metrics. In this you must also acknowledge what methods to be adopted and the pace at which the organization will collect the data. Make sure that you know about existing industry standards if any and the best way to do the measurements.
f) The business intelligence program should be carefully governed to ensure completion of the desired targets. You may have to make several adjustments or modifications in the program from time to time. The business intelligence program should also be tested for accuracy, reliability and validity. One should also know that how the business intelligence initiative entails a variation in results and how much change was a chance product.
About the Author
Mansi gupta recommends that you visit http://www.businessintelligencelowdown.com/business_intelligence/index.html for more information on Business Intelligence.
(A) What is forecasting? Why is it so important in the management of business firms and other enterprises?
(B)What are the different types of forecasting?
(C)How can the firm determine the most suitable forecasting method to use?
A.) Forecasting is the science of predicting future outcomes. In business, it applies to the future of a business, product, or industry. It’s extremely important for a business to do proper forecasting before developing new products or product lines, lest you spend a lot of time and money developing a product that fails in the marketplace. An excellent example of a failure in forecasting is New Coke.
B.) This question sounds like it’s looking for types that are given in your textbook somewhere. However, here are some ideas:
From wikipedia (since their description was concise and well written):
Product forecasting is the science of predicting the degeree of success a new product will enjoy in the market place. To do this, the forecasting model must take into account such things as product awareness, distribution, price, fulfilling unmeet needs and competitive alternatives.
Trend estimation is the application of statistical techniques to make and justify statements based on trends in data. For example, trying to discern if the trend of a certain industry’s expansion will continue, level off, or actually reverse itself.
Technology forecasting is forecasting the future characteristics of useful technological machines, procedures or techniques.
C.) Again, this question is probably looking for information already given to you in the textbook or assignment.
I’ll take a stab:
1.) Analyzing the methods used by similar successful companies, and modifying them for their own business plan.
2.) Try several, and see which method work best with the available data, and which methods seem to produce the best results (trial and error).
|
|
The Six Sigma Way: How GE, Motorola, and Other Top Companies are Honing Their Performance $7.49 This title is an implementation blueprint for Six Sigma! “”The Six Sigma Way” demystifies Six Sigma with a real-world ‘how-to ‘guide. A good investment for any business planning to launch Six Sigma.” – John Biedry, VP Quality and Compliance, Sears Home Services. Cost reduction …productivity improvement …customer retention …these are the promises of the Six Sigma quality management system. “T… |
|
|
Market Models: A Guide to Financial Data Analysis $83.58 Market Models provides an authoritative and up-to-date treatment of the use of market data to develop models for financial analysis. Written by a leading figure in the field of financial data analysis, this book is the first of its kind to address the vital techniques required for model selection and development. Model developers are faced with many decisions, about the pricing, the data, the stat… |
|
|
Currency Forecasting: A Guide to Fundamental and Technical Models of Exchange Rate Determination $65.00 Information-packed guide to fundamental currency price forecasting by a professional currency analyst. Teaches you to decide when currencies are likely to rise or fall using analysis of balance of trade, purchasing power parity, et al. Explains the effect of interest rates, fiscal policies and central banks, and includes currency trading methods…. |
|
|
Methods for Business Analysis and Forecasting $68.56 This book is in New – Excellent condition |
|
|
Forecasting Methods in Business and Management $23.4 No Synopsis Available |
|
|
Methods for Business Analysis and Forecasting : Text and Cases $186.91 No Synopsis Available |
|
|
Business Forecasting $165.62 No Synopsis Available |
|
|
BUSINESS FORECASTING $81.9 No Synopsis Available |
|
|
Business Methods $19.99 Business Methods – Premium Poster |
|
|
Statistical Methods for Forecasting $120.9 No Synopsis Available |
|
|
A View of Different Methods for Air Conditioning $79.99 A View of Different Methods for Air Conditioning – Premium Photographic Print |
|
|
Business Forecasting with Student CD $144.32 No Synopsis Available |
|
|
Forecasting for Economics and Business $197.46 No Synopsis Available |
|
|
Advances in Business and Management Forecasting $99.95 This book is in New – Excellent condition |
