Consilix AG will be happy to create a customized solution for budget forecasting in your company so that you too can benefit from the agility you have gained.
What is forecasting with Jedox and how does it work?
You may be asking yourself the question: What is forecasting and how does it work? The English term "forecasting" stands for "prediction". It refers to a look into the future that depicts upcoming developments as accurately as possible. This is best achieved by precisely evaluating past events.
This approach is particularly important in the business world. This is because current and past business figures are essential for companies. For example, they determine the amount of future investments that can be made. Positive business forecasting can also be used to convince investors.
Consilix AG recommends that companies use the EPM software Jedox. EPM stands for "Enterprise Performance Management". The software accesses existing data and creates a precise business forecast based on facts and the expert knowledge of the specialist departments. This enables decision-makers to guide the company confidently through difficult phases. The insights and figures gained can be automatically applied to the company-wide operating systems.
The Jedox user interface is very similar to that of Excel. This makes it easy for controllers to use the software, as they can draw on their knowledge of Excel. The program then transfers the entered data to a higher-level data management system. Decision-makers can access this from any desired end device - be it a PC, tablet or smartphone.
This allows the software to adapt flexibly to the company's existing IT landscape. This allows individual departments to work together smoothly. Jedox can also be tailored to the needs of companies of any size. Whether start-up, SME or established corporation: Jedox makes budget forecasting a breeze.
Why is budget forecasting important for companies?
Why is precise budget forecasting so important in the financial sector? The more accurate the future figures are, the better a company can be managed. Potential strategic partners are more willing to cooperate if they are presented with reliable figures. And a company 's share price also remains stable if its forecasting works optimally. You can also recognize negative business developments at an early stage and take effective steps to counteract them.
What are the benefits of budgeting & forecasting for your company?
Budgeting is of crucial importance for a company. It typically concerns the following areas:
- Financial planning
- sales planning
- personnel planning
A lot of money is moved in each of these areas. Decision-makers therefore want to know as precisely as possible how the individual areas are developing. If they know the figures, they are in a better position to take measures in the right place.
For example, they can ensure that profitable products are sold more effectively. Or they can monitor wage costs more easily. This improves productivity and the company's ability to act.
These are forecasting methods and their areas of application
Essentially, a distinction is made between
- qualitative forecasting and
- quantitative forecasting.
For qualitative budget forecasting, historical business figures are considered. Trends and demand figures are also taken into account. This results in projected figures for the future. However, this method does not work if a company has just been founded and does not yet have any figures to show.
Quantitative budget forecasting, on the other hand, is not based on figures, but on estimates and conclusions. It therefore relies on the knowledge and experience of experts. For example, the sales figures of a new product that is being launched on the market are predicted. However, this method is only as good as the expertise of the experts, as it is not based on key figures.
How can AI-based forecasting support companies?
Artificial intelligence is the technology trend of the moment. Countless industries are considering how AI can make business processes easier. Business forecasting in Jedox can also be based on artificial intelligence. The system automatically determines future key figures from the underlying data.
Jedox creates the best forecast as well as upper and lower limits from the existing database. To do this, it recognizes which parameters were the driving force behind past developments. These values can then be flexibly adjusted by the planners to simulate unforeseeable events.
Are you interested in business forecasting and would you like a Jedox demo or implementation of Consilix? Then please use our contact form. We will be happy to advise you individually and make you a customized offer.