Business forecasting methods: Impressive advances, lagging implementation

Area of Science:

• Operations Research
• Business Analytics
• Management Science

Background:

• Accurate forecasting is critical for operational and financial performance in various industries.
• Recent advancements in forecasting methods offer significant potential for increased accuracy.
• Despite benefits, many organizations do not adopt systematic forecasting practices.

Purpose of the Study:

• To provide an overview of recent advances in forecasting techniques.
• To investigate the reasons behind the low adoption rate of systematic forecasting methods.
• To identify strategies for promoting the wider use of advanced forecasting.

Main Methods:

• Literature review of recent forecasting advancements.
• Analysis of survey data from organizations using forecasting.
• In-depth semi-structured interviews with forecasting professionals.

Main Results:

• Organizations face barriers to adopting advanced forecasting methods.
• Lack of awareness, perceived complexity, and insufficient resources hinder adoption.
• Specific organizational and technical factors influence the uptake of new forecasting tools.

Conclusions:

• Despite proven benefits, systematic forecasting adoption remains low.
• Addressing identified barriers is crucial for increasing the use of advanced forecasting.
• Implementing targeted strategies can facilitate wider adoption and improve organizational performance.