In a recent white paper published by Ducker Worldwide, “When Just Forecasting Is Not Enough”, Ducker identified the growing need for organizations to evaluate their forecasting model and assess the drivers utilized and tracked within their model.
Forecasts are used for various purposes and planning activities throughout an organization. However, forecasting in today’s market is significantly different than in previous years.
Several variables and changing dynamics are influencing the use of market drivers in forecasting models including:
Globalization: Business is being conducted on a global scale; companies are manufacturing, selling and sourcing products throughout the world
Technology: The advancements of technology have provided organizations the opportunity to implement more systems and have access to more data than ever before
Data and analytics: The increased access to data, although very beneficial, can make it difficult to examine and prioritize its effects on the business
Due to the significant influence these variables have on specific market drivers, forecast models are being affected making it difficult for secondary data to be the only contributing research. In Ducker's most recent follow-up white paper: Fundamentals of Forecasting: Pulling it all together, you'll learn:
- Process for identifying key variables for your forecast
- The importance of updating your forecasting tool
- Opportunities for market driver tracking both internally and externally and the role market drivers play in the forecasting process