Question

Why is forecasting important in organizations, especially as related to understanding the relevant time horizon to develop a forecast against? What are some examples from industry?

Answer 1

Answer 1) Forecasting is something which is said to be planning for the future and in today’s competitive era it is very important for companies to stay ahead of their competitors and bring some kind of new technology in the product and service so this only possible if a company does its future planning that is forecasting in betters way than that of competitor. Forecasting in today’s time have become a part of working giving example of Apple, Apple is going to launch Iphone 12 in September and planning/designing of Iphone 13 would also have been started and forecasting of what changes could be brought in Iphone 13, how much will be the cost of Iphone 13, regarding demand and supply of Iphone 13 all these things will be forecasted by Apple. By this example it might be clear what is forecasting now let’s talk about why it is important companies invest huge in amount in their product and services is any things goes wrong all of this amount goes in vain and there is huge amount risk involved when we predict future because future is very unpredictable, the atmosphere, the eco system, just see how corona completely changed the market, companies going bankrupt, big companies suffering huge losses, employees losing jobs all this happened because of poor forecasting. If forecasting would have been successful world would have been saved from covid pandemic. So this is importance of Forecasting in order to save a universal body from future risk.