Foresight is all about the ability to look forward, to forecast, to model the impact of business change and to evaluate scenarios.
It’s the difference between “a punt” and a calculated risk…
The specific analytic capabilities in the foresight capability stage are,
- Forecasting: The ability to roll you time series data (sales, income, profit, conversion, etc…) forward into the future. Forecasting is more than simply clairvoyance, it is a fundamental toll without which you are unable to plan and manage your business effectively. An example of some basic forecasting capabilities is univariate spreadsheet forecast using exponential smoothing methods (all built into a standard Excel installation). A best-in-class forecasting solution continually updates itself providing real-time forecasts using a variety of input (multivariate) data and forecasting techniques.
- Business modelling: “A statistical model is a formalization of relationships between variables in the form of mathematical equations”. Nicely put Wikipedia. There are relationships in your data that are not visible until the correct analysis is applied to it. There is a relationship between the type of customer you send an email to and the probability of them providing a positive response. There is a relationship between how a customer behaves on their first visit and their eventual long term value (LTV). Understanding these relationship enables you to target you marketing activity at those that are likely to respond, and likely to go on to have a high LTV. Awesome…
Foresight is the second of our capability stages, and is a prerequisite foundation for developing any more advanced capabilities. Similarly, it is not possible to develop strong foresight capabilities without a good hindsight foundation.
Depending on the size of your business, the size of your budget, and your business priorities there is no single solution for providing foresight capabilities.
To find out where you currently site in the capability matrix, and to plan your route map to achieving your target level of capability please get in touch with us.
For a full description of our approach to delivering strategic routemaps to “best-in-class” capabilities, please take a look at our PDF document, Atom Insight Business Solution Bundles.