For any business interested in long term prosperity and success, the ability to predict the future would likely be at the top of their business wish list. Knowing what is going to happen before it happens would give your company a decided advantage in your particular marketplace.

Of course, there is no magic genie that will predict everything that is going to happen, but it is possible to get a glimpse of what lies ahead. Business forecasting has been around as long as businesses themselves. This function would typically come down to a handful of heavily educated business people, analyzing the business, the economy, and many other factors to help them predict what will happen next. Now, it is possible to install business forecasting software that will essentially do all the ‘heavy lifting’ and predict the outcomes for you.

Forecasting software will allow you to input data on a specific variable then analyze that data and choose the proper forecasting technique. It will generate reports and recommendations based of the findings so you will know what actions to take as you move forward.

Forecasting software can help with a variety of different functions within your business. It can find unseen trends and anticipate fluctuations. It can show you the best way to allocate your budget. It can help with inventory control and even sales.

There are basically two types of business forecasts, operational and strategic. Operational forecasts support routine business processes like production planning, inventory management and sales force evaluation. Strategic forecasting is used to compare competing business plans and strategies.

Within these categories are three sub-categories. These are known as ‘time series forecasting,’ simulation based forecasting’ and ‘statistical forecasting.’

Time series forecasting analyzes trends and patterns from historical data you have entered. It can take all of the information you have given it and predict the future performance of your business.

Simulation based forecasting takes your information and evaluates different business scenarios. These can include economic factors, competition and the behavior of your target markets.

Statistical forecasting will take your information and find relationships between multiple inputs and business outcomes. This will in turn give you a better idea where to focus your attention to achieve specific goals.

There are many different types and brands of forecasting software available for you to use. Each will have its own properties and features, and it is up to you to determine which will satisfy your business needs. When analyzing the different types of software, always keep your end goals in mind. This will help you choose software that is going to move you in the direction your business wants to go.

There is no concrete way to know absolutely everything that is going to happen with all aspects of your business. Sometimes things just happen that no amount of software forecasting will be able to predict. Economies crumble, acts of nature happen and new technologies emerge from nowhere. There will always be the ‘unknown factor’ when it comes to business. By implementing forecasting software in your business and using it, you can greatly reduce that ‘unknown factor’ and maximize your future success.

Author Bio: Market leader in providing a new generation of predictive, business analysis software and services that create true business intelligence. Offering masterful tools in data collection, performance management, and collaborating business statistics.

Category: Computers and Technology
Keywords: business, forecasting, software, computers, hardware, systems, banking, financial, economy