What is S&OP and Why Should Finance Care?
Initially, planning activities were centered entirely on metrics, such as:
Initially, planning activities were centered entirely on metrics, such as:
The value of predictive analytics allows companies to view the history of a seasonal product’s raw materials, for example, and predict how procurement needs to source the upcoming season’s inventory. Procurement gets a win for reducing costs, but the company doesn’t necessarily benefit if the product has overall lower margins
Myth #1: Companies believe they already have/use prescriptive analytics. Just mention advanced analytics or its subsets like machine learning, AI, simulation, etc., and you’ll find many people use these terms interchangeably. Advanced analytics is an umbrella term for the following:
Predictive and prescriptive analytics are two forward-looking tools used by business leaders which overcome these limitations. Using a combination of historical data (descriptive analytics), rules and a knowledge of the business, they more accurately predict the future, and, in the case of prescriptive analytics, guide leaders to the best overall
According to the Gartner report, “The prescriptive analytics software market will reach $1.88 billion by 2022, with a 20.6% CAGR from 2017.” The report also finds, “Overall buyer awareness and interest in the value of analytics and data-driven decision making continue to be key growth drivers. Currently, 11% of large and
