Finance departments often spend days, if not weeks, preparing a budget or forecast. This process can be frustrating because opinions can differ and data is often outdated by the time the process is completed. Fortunately, it can be faster, easier and more accurate with Predictive Forecasting from SAP Analytics Cloud (SAC).
Predictive power of SAP Analytics Cloud (SAC)
SAC uses historical data to generate an accurate forecast, all with just a few presses of a button. Who wouldn't want that? People are often skeptical about the idea that a planning solution can predict the future. Can a system really make a better estimate than a financial? We think so, provided they work together.
Human prejudice
People are often not good predictors, numerous studies show. Several biases influence our forecasting skills, think optimism and a "Self-serving bias. This affects our forecasts in the workplace. In addition, we often overestimate our influence on certain situations and underestimate external factors.
The power of data
Predictive forecasting harnesses the power of data. Historical data has strong explanatory value and can therefore be used as a basis for forecasting. As a basis, because this is where the role of the financialian comes into play. Because although historical data offers a lot of information, there are always external factors that are not included in the data. Consider, for example, unplanned shutdowns of production lines, logistical disruptions such as a Suez Canal blockade, or geopolitical conflicts that affect energy costs.
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