Predictive (Forecasting) systems are a group of systems that use past and present information to generally predict the future of an organization by analyzing business trends. An example of how these types of systems work is to estimate the amount of a variable, especially in the future. Prediction is about what is expected to happen, but if we want to talk about prediction, it covers a wider range and may point to things that are not expected. It is important to know that there is no guarantee that the predictions will be correct, but it is very important to plan ahead. According to Howard Stevenson, business forecasting has at least two characteristics: “it’s important and difficult.” Every manager deals with predictions in their own way. Predictions are sometimes simple and sometimes complex and difficult. Forecasts can also be made for short-term or long-term periods of time. Of course, predictions never exactly match reality, and you should try to minimize predictive errors. At present, management scholars have developed various techniques for forecasting and provided them to managers. Each of these techniques has its own application, and by combining them, more successful predictions can be made. Managers should try to choose a model for forecasting that meets the needs of the organization and is tailored to its activities. In many cases, a simple predictive model may provide better results than a complex model, and we at Fergas International try to help you succeed in this route with the help of our experts.
