In economically challenging times, companies must be able to act quickly and flexibly. The basis for this is a high-performance and daily updated information and decision basis for corporate management. An automated forecast and scenario planning prove to be very energetic instruments in determining suggested values from the past.
Either via simple updating of the past, actual+plan, actual+plan with consideration of already accumulated plan deviations etc. and alternatively also with AI algorithms.
The planning horizon of forecasting is much shorter and not as detailed as the classic annual planning, because the forecasts during the year must also be able to be adjusted more quickly to new conditions. An accurate and automated forecast is essential because it influences many business decisions. The forecast and the budget are relevant factors for setting the overall budget including operational levers such as marketing budgets, production costs, new hires or targeted sales incentives.
For the management and the controllers in the company, forecasting is a time-consuming process that is often impaired by various Excel sheets and tools. Advanced predictive analytics supports the responsible persons to reduce the effort by automating the rolling forecast.