Forecasting Drivers of Business Performance
Good business decisions are driven by accurate forecasts of the variables that drive business performance. Often, the required forecasts are market forecasts such as demand or rate forecasts. However, in many cases other factors will also drive performance such as forecasts of accident rates or retention rates for employees. It is absolutely critical for organizations to make the best possible use of both objective and subjective information when forecasting demand, capacity, price sensitivity, and other important drivers of business decisions.
Cascade has a broad range of experience in forecasting. The fundamental question is understanding the specific decision that the forecast is designed to support. For example, a market forecast to support asset deployment and valuation would have a much different level of detail and focus than a market forecast to support operations planning. In developing appropriate forecasts, Cascade addresses questions such as:
Choosing the appropriate forecasting methodology is a key first step, but it is equally important to embed the methodology in a forecast process that builds user buy-in and provides performance feedback so that high forecast quality is maintained over the long run.
- What factors affect market demand?
- How do you forecast demand that is not completely observed?
- How do you forecast with extremely sparse data?
- How can we easily incorporate business judgment into market forecasts?
- What is the most effective business process to generate the required inputs to the forecast?
Anticipating Business Trends Through Targeted Data Mining
Getting the most insight possible out of the available information that might support a particular decision is a key to maximizing competitive advantage. Cascade mines public and company proprietary data sources to provide focused forecasts to support decision making. |