The Role of Forecasting for Business Essay

Exclusively available on Available only on IvyPanda® Made by Human No AI

Forecasting is essential for business as it allows identifying specific factors that will influence the operations. These techniques can help predict the supply, demand, and other indicators for products and services. Flostrand (2017) states that managers can “rely on their own intuition and judgment or resort to the insights of others” (para 1). This is because they often do not possess quantifiable data that can be used to resolve an issue. Considering this, the Delphi technique is crucial as it helps create forecasts for uncertainties relying on the opinions of experts. The process involves polling the specialists on their opinion regarding a problem, collecting the responses, giving the answers to other experts, and repeating the process until a consensus is reached (Flostrand, 2017). Therefore, the Delphi technique is useful in cases where the data amount is limited, and the opinion of specialists is the only option for performing a forecast.

Both in daily lives and business, the extensive use of computers offers a new way of forecasting. Weingärtner, Bräscher, and Westphall (2015) state that Cloud services provide a lot of functions that can be used by businesses to enhance their forecasting techniques. Thus, surveys and various market researches can be performed in this way, making it easier for both the researchers and the respondents. Furthermore, the computers allow utilizing techniques of data analysis that would enable receiving results of forecasts more quickly.

Different tasks may require a variety of forecasting techniques to carry out the process correctly. For example, Kahn (2014), states that forecasting for a new product should differ from the methods used to determine the values of existing commodities. The process of choosing the approach should include evaluating the data, plan, measurement, forecast, and analytics. In cases of new products, only a small number of data is available which requires qualitative methods of forecasting.

References

Flostrand, A. (2017). Harvard Business Review. Web.

Kahn, K. B. (2014).Harvard Business Review. Web.

Weingärtner, R., Bräscher, G. B., & Westphall, C. B. (2015). Cloud resource management: A survey on forecasting and profiling models. Journal of Network and Computer Applications, 47, 99–106. Web.

More related papers Related Essay Examples
Cite This paper
You're welcome to use this sample in your assignment. Be sure to cite it correctly

Reference

IvyPanda. (2021, June 22). The Role of Forecasting for Business. https://ivypanda.com/essays/the-role-of-forecasting-for-business/

Work Cited

"The Role of Forecasting for Business." IvyPanda, 22 June 2021, ivypanda.com/essays/the-role-of-forecasting-for-business/.

References

IvyPanda. (2021) 'The Role of Forecasting for Business'. 22 June.

References

IvyPanda. 2021. "The Role of Forecasting for Business." June 22, 2021. https://ivypanda.com/essays/the-role-of-forecasting-for-business/.

1. IvyPanda. "The Role of Forecasting for Business." June 22, 2021. https://ivypanda.com/essays/the-role-of-forecasting-for-business/.


Bibliography


IvyPanda. "The Role of Forecasting for Business." June 22, 2021. https://ivypanda.com/essays/the-role-of-forecasting-for-business/.

If, for any reason, you believe that this content should not be published on our website, please request its removal.
Updated:
This academic paper example has been carefully picked, checked and refined by our editorial team.
No AI was involved: only quilified experts contributed.
You are free to use it for the following purposes:
  • To find inspiration for your paper and overcome writer’s block
  • As a source of information (ensure proper referencing)
  • As a template for you assignment
1 / 1