This extension of classic forecasting consists of a large structure of data from the various business units. With their help, automated future forecasts are possible. Manual data collection is often costly and not accurate enough. Forecasts derived in this way are therefore insufficient for rapid corporate decisions. If the market situation changes within a few hours, other tools must be used. Predictive forecasting is one of the solutions of the future. Predictive maintenance is an important part of Industry 4.0, which stands for the digitalized world of industry. Predictive Forecasting is therefore a tool of the pioneers of the industry.
The term forecasting refers to the prediction of data, future values and new trends in internal business decisions. Predictive forecasting surpasses this process through the use of AI. This is because even more extensive values are included by relying on the advanced principle of machine learning (AI). By automatically calculating probabilities, one can more accurately predict the future state of the business. Values can be relied upon. The tedious manual calculation for predictions is a thing of the past. In addition, even with a lot of extra hours of work, this outdated way of forecasting is not the same as a predictive forecast. The emerging patterns from real-time data (Big Data) from competitors’ prices, the most frequent search queries and possible environmental situations are automatically analyzed and evaluated in a preventive manner. This creates an otherwise unattainable level of data accuracy. The method supplements the company’s own data set with a large construct of possibilities and their probabilities.
Subjective, corporate policy decisions are relegated to the background by data-driven forecasts. The numbers and real-time data are the driving factor and cannot be manipulated by opinions. Predictive Forecasting provides a pool of variables that serve for internal and external decisions. Thanks to intelligent algorithms, a solution that is as satisfactory as possible can be derived within seconds. Strategic “mind games” and trade-offs are completely eliminated and do not demand unnecessary time. In addition, the AI learns from every consideration and thus constantly improves itself.
Corporate success stands and falls with the results of predictive forecasting. Thanks to the values, it is possible to continuously identify unique opportunities and otherwise unforeseeable risks at an early stage. This results in a much smaller risk of wrong decisions, which is further minimized by each newly discovered causality. Almost incidentally, the company saves time and money. Crisis management is more important than ever and the unpredictable situations of the decade show that their triggers are often not only financial. It is not only worthwhile to include external factors in the forecasts for the company, it is nowadays indispensable.
Get to know our predictive forecasting module