Companies have long used business forecasting to anticipate the future needs of their company for manpower and materials. Sadly, many a business forecasting model has been based less on hard analysis of comprehensive data than on discussions with management and staff and extrapolation on past performance. This has led to many missed opportunities to take advantage of market trends. Fortunately there are a number of new, more accurate qualitative forecasting methods to which businesses now have access. These new qualitative forecasting methods are ushering a new era in business.
A New Approach
Identifying, preparing for and taking advantage of opportunities are essential to success in business. With the new scientific approach to business forecasting which is coming into common use, companies can now gather pertinent information, analyze it carefully and make effective plans to turn that information into a positive bottom line. The business forecasting model which is now in vogue utilizes techniques, methods and theories specifically designed for gathering accurate information and turning it into cold, hard cash. These new methods of business forecasting are miles ahead of the old model.
The development of the internet and new information technologies adopted by many businesses today has taken business forecasting to an entirely new level. They have made decisions on which goods and services companies should commit the resources to a lot more accurate and ultimately more profitable. Waste is the enemy of profit. Businesses that are able to reduce or eliminate waste increase their chances for success exponentially. The use of sophisticated business forecasting software, advanced mathematical algorithms and electronic networks now allow companies to gather and process mounds of data and turn it into accurate information for identifying business trends.
The Scientific Method
Many of these systems can be tailored to meet the specific needs of a particular company or industry. Qualitative forecasting methods which employ these new tools have enabled many companies to take the guesswork out of business forecasting and base it on solid science. This has led to better products, better marketing programs and happier customers and business owners.
The new business forecasting model has also led to accurately projecting optimal levels of raw materials to be purchased and products to be produced. Web-enabled technologies like advanced management systems for supply chains, electronic spreadsheets, electronic data interchange and enterprise resource planning has increased profits for many companies. Business forecasting is an indispensable tool for modern businesses. Being able to pinpoint key production and marketing factors and accurately extrapolate what the needs of the buying public, and therefore the business will be, is crucial to a company’s long term success. The new business forecasting models and tools are making this easier than ever before.