What makes the driver based forecasts tricky is that they can feel subjective and vary from industry to industry and company to company. Drivers will likely range from macro economic indicators to industry specific metrics to unique ones for specific company, and potentially even drivers closely aligned to business function. The key is that driver data should be measurable to use in mathematical models reflect how an enterprise would respond in different core variables. It is up to forecasters to determine their own criteria for selecting core drivers. Key selection criteria could include ease, timeliness of availability, materiality, causality and ease of understand to the business.
Drivers data typically takes in three forms predictive, casual, and life cycle. This can be combined to create most acaccacc forecasts.
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