Presenting a forecasting system | Business & Finance homework help
Operational forecasting is an essential tool for organizations to maximize their success and efficiency. As a predictive measure, it allows organizations to plan ahead so that they are better prepared when opportunities or risks arise. This ensures that resources are utilized optimally and organizational goals can be achieved in the most efficient manner possible.
Studies have shown that operational forecasting has immense potential impacts on an organization’s performance (Makridakis et al., 2021; Intes et al., 2018). By helping companies analyze market trends before making decisions, operational forecasting enables them to capitalize on current conditions while also mitigating any associated risks (Intes et al., 2018). It offers insight into customer demand and preferences, allowing businesses to effectively shape their strategies according to what will likely result in increased revenue (Makridakis et al., 2021). In addition, it provides valuable data that can aid decision makers in examining the impact of various scenarios before taking action (Intes et al., 2018).
Overall, operational forecasting is a powerful tool with the capability of transforming an organization’s performance for the better.