Benefits and challenges of business forecasting

Business forecasting delivers a mix of increasingly critical benefits. Qualitatively, the certainty afforded by detailed forecasting can strengthen leadership and boost employee wellbeing as increased confidence in decision-making leaves the organization feeling more secure — improving morale and positive outlook. The right forecasting tools also facilitate data democratization — making reliable insights accessible to teams across the organization and fostering a culture of empowerment, foresight, and strategic thinking. 

The reduced business uncertainty achieved through forecasting-informed strategic planning also, more concretely, helps maximize sales and minimize waste — boosting profits. More accurate planning cycles, informed by projected consumer buying behavior and market characteristics, leaves teams across the organization better equipped to succeed. Product teams can time launches to coincide with an expected upswing in consumer demand, marketing teams can design promotional strategies that capitalize on market trends and opportunities, operations teams can streamline production, distribution and inventory management, and more. More broadly, resources can be reallocated proactively to mitigate the damage of anticipated disruptions or overall market shrinkage.

Some indices have the power to influence major shifts in financial markets — and some, like those by GfK, are even cited by the likes of the Financial Times. But while these measures are a robust indicator of market and consumer behavior, GfK Forecasting solutions adds an additional layer of value by turning these insights into easily understandable forecasts that teams across the organization can leverage. 

Let’s take a closer look at the impact of one real-life AI-led forecasting tool from the GfK Forecasting solutions suite, gfknewron Predict. A Total Economic Impact™ study, commissioned from Forrester Consulting, examined the benefits, costs, and risks associated with investing in the complete gfknewron suite, comprising gfknewron Consumer, gfknewron Market, and gfknewron Predict. For the purpose of the study, they interviewed 5 business leaders experienced in using the platform, aggregated the findings and combined the results into a single, composite organization. 

Forrester found that gfknewron Predict, in combination with gfknewron Consumer and gfknewron Market, can deliver up to 345% return on investment, with the improvements to strategic planning and operations through more accurate — and easy-to-use — forecasting streamlining everything from pricing, to portfolio and inventory management, go-to-market strategies and operational costs.