2020 was an atypical year that brought unprecedented challenges for almost every company in the world. Most of them were not prepared to face the crisis generated by the pandemic; practically no one had foreseen a similar scenario. Therefore, this crisis has brought home the importance of anticipating various sales and productivity scenarios.
Scenario planning is a method designed to test the impact of various strategic options on a company. That is, you can see what the future holds for your business by considering the impact of certain variables. It is a tool that helps to analyze situations that could arise and to discover how to manage them in order to make them favorable.
Why forecast sales and productivity scenarios
Planning scenarios is crucial for foreseeing future problems. Imagine what could happen if the risks you identify in the market turn into problems, what would you do in those cases? Not planning scenarios will not always lead to disaster, but it can leave the door open to greater risk and losses
It is no secret that we live in a highly dynamic world. Since changes are part of everyday life, it would be naïve to set a strategy and expect the future to follow the plan to the letter. Therefore, since the future cannot be predicted, it is best to foresee various scenarios. This can be essential for the survival of your company.
Having a tool that allows for more accurate sales and productivity forecasts in changing scenarios is important because it:
Prepares the company for future interruptions
By forecasting sales and productivity scenarios, companies become aware of the factors that could influence them in the near future. This knowledge helps leaders to better analyze their future possibilities and opportunities, as well as anticipate potential disruptions, as ‘early signs’ are recognized.
2.Helps create strategies
By knowing the different scenarios that could occur, you can create strategies based on them. You will be able to build a more solid, data-driven strategy to be well prepared.
3. Allows the development of necessary skills for the future
Once you know what impact the expected sales and productivity scenarios can have you will be able to develop the skills needed to manage the business well.
4. Increases organizational agility
With a scenario planning tool, your business will be more agile and able to adapt to multiple eventualities. Whatever changes occur, you will be able to respond accurately and quickly.
5. Improves decision making
By considering different scenarios you will be able to improve the decision-making, as you will have a broader and more accurate knowledge of how to act and which path to take to keep the company on a favorable footing.
¿How does Oracle EPM help you plan your business?
Oracle EPM is a solution for scenario modeling, as it includes a module called Planning, which includes several financial planning tools. Thanks to this functionality, you will be able to forecast sales and productivity scenarios in your company, because it allows to easily connect the data of the entire organization. In addition, the forecasts created are automatically updated as results change.
This software also stands out for its ability to integrate with other systems, allowing it to work with data that is usually isolated, such as ERP or CRM. This is important because it helps to have a comprehensive and real-time view of the business. If you want to implement this solution in your company, Fusionworks can help you, Contact us!