Areas of application
Companies expect a better understanding of their market environment through the use of predictive planning. They want to better understand their customers‘ purchasing behavior and incorporate this understanding into their planning. If the expected sales can already be estimated in the planning stage, pricing, logistics and production can be aligned accordingly. The earlier this knowledge is available, the more flexibly you can react, for example, by adjusting production or stock levels. The result is higher sales and more satisfied customers.

Great benefits through predictive planning
The operational benefits of predictive planning for companies are multifaceted. It ranges from higher planning quality and accuracy to the reduction of planning effort and the use of resources to the opportunity to be able to react more quickly to requirements in order to gain a clear competitive advantage. The rapid provision of forecasts and assessments is important for success in complex markets.

Through regular interim forecasts, management receives feedback on the current status and thus a picture of the overall situation of the company. Less detailed rolling forecasts at shorter intervals provide those responsible with a better overview.

Efficiency through transparent processes
Overall, there are strategic advantages for companies, ranging from increased earnings and higher operating margins through the reduction of several cost components to increased efficiency due to transparent planning processes.

Conclusion
The planning focuses on key drivers relevant to management. A stronger focus and more automation make it possible to carry out planning and forecasts faster and more reliably. Uncertainty and dynamics can be taken into account with the help of simulations. As a result, there are resilient options for effective action in a multitude of possible events.

Current technical possibilities such as digitized processes, comprehensive data storage and powerful computing capacity in conjunction with robust, mature methods and algorithms allow corporate planning to be taken to the next level through predictive planning. The predictive planning approach provides greater security and can help companies to anticipate the future reliably and quickly, even in the present, if the necessary framework conditions are met.

If you have any further questions, please visit our social media channels (Xing, Linkedin) or call us at +49 (0)641 984 46 – 0.

Der Beitrag Predictive Planning as a success factor for companies (part 2) erschien zuerst auf Dastani Consulting.

Without planning possible future scenarios, the economic success of a company can hardly be organized. However, as the environment becomes more and more complex, combined with unexpected events, painstakingly created plans often deviate from reality. As a result, the company reacts retrospectively instead of looking far into the future. An extension of the planning cycles can help to a certain extent, but the limited resources set a limit. Predictive planning makes it possible to exceed this limit.

The next level of business planning
Many events happen unexpectedly. In this case, a company has to react quickly – at best with a knowledge advantage. Predictive planning focuses on the analysis of specific processes and challenges of a company and is rapidly gaining relevance for many companies (75% of companies see increasing relevance of predictive planning).

Reliable predictions through the use of intelligent analytics
Predictive planning refers to the use of predictive models based on statistical methods, machine learning and artificial intelligence for business planning. The drivers for this are the ever-increasing amounts of generated and processed data, as well as the more comprehensive use of machine learning in business intelligence and analytics due to the simple availability in the cloud.

Predictive planning and forecasting are intended to provide better technical support and shorten existing processes. Furthermore, the planners are to be relieved. The aim is to automate projections. This offers considerable time savings in the analysis.

To this end, the quality and accuracy of planning should be increased by identifying cause-effect relationships and integrating them into planning models. In the foreground, knowledge about the company and its environment is to be gained. This will be done by linking internal and external data with the help of explorative analyses. In this way, a realistic representation of future scenarios can be created.

In the second part of the article, opportunities and benefits as well as areas of application of the predictive planning method are presented.

If you have any further questions, please visit our social media channels (Xing, Linkedin) or call us at +49 (0)641 984 46 – 0.

Der Beitrag Predictive Planning as a success factor for companies (part 1) erschien zuerst auf Dastani Consulting.