Current business forecasting methods rely heavily on simple predictions or employee assumptions. In fact, your company probably uses a host of Excel spreadsheets to make decisions that have a major impact on the organization’s operations. However, these methods contain many biases since forecasts are often based on individual instincts or on incomplete or even inaccurate information.
The advantage of prediction models is that they allow you to exploit the full potential of different data sources. Thus, by using your in-house data (e.g., data from your ERP system) and external data (e.g., weather, economic conditions), you will be able to obtain reliable, real-time predictions.