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Requirement

Can handle multiple forecast versions

Functional Area

Planning

Industries
All
Tags
Forecasting
Versions
DETAILS

Description

In the realm of Corporate Performance Management (CPM) software, the ability to handle multiple forecast versions is elemental. This feature allows users to create, view, edit, and compare different forecasts simultaneously. Forecast versions may encompass baseline, best case, worst case, or other customized scenarios, providing a comprehensive view of the potential business trajectories.

Example Use Case

Scenario: A manufacturing company utilizes CPM software to forecast revenue and expenditure. They wish to create different versions of their financial forecast including an optimistic scenario, a likely scenario, and a pessimistic scenario.

Solution: With a CPM solution capable of handling multiple forecast versions, they can create these distinct forecasts in parallel. This allows them to compare possible outcomes, plan mitigations for potential risks, and identify opportunities under different scenarios.

Considerations

This is one of the most basic features of any CPM tool. If the tool does not have the ability to do this, it is likely not ready to be on the market.

When looking at these tools, make sure it will accommodate the amount of versions you'll have at any point in time. For example, if you have 30 live what-if forecasts at any point in time, make sure you can have those all accessible in the tool. Some products might make you archive those. Others may charge you storage fees. While others might slow to a crawl. Confirm that the system's limitations are with your tolerance.

Also confirm that the comparison tools, which are essential to any product that allows versions, are to your liking. Are they only available in reporting? Can I show them on a sheet where I can model different versions and see the outcome? Do I need to make a new comparison report for each and every version? Make sure the maintenance burden is not extensive.

Questions to Ask a Vendor

  • Creation and Comparison Capabilities: How easy is it to create multiple forecast versions in your software? What tools are available to compare them?
  • Customization Features: How customizable are the version scenarios? Can users define their parameters and inputs?
  • Scalability: How many versions can we have going at once? Are there extra fees?