Forecasting Methods for Product Managers
Elements of Forecasting and Its Applications in Product Management
The word “forecasting” is often associated with the weather. However, it goes beyond just weather. Knowing what will happen in the future help us prevent disasters or prepare to reduce the impacts. An interesting thing about forecasting is that the more you know about the past better is your prediction about the future. The history of forecasting goes way back in time. The Egyptians used forecasting techniques to predict harvests based on the water level of the Nile River during the flooding season. Since then, forecasting techniques have slowly evolved and become an integral part of the business. They are used almost in every area of business. Finance uses forecasting in making investing and budget decisions. Operations use it for managing inventory, staffing, and business expansion. Sales and Marketing use it to analyze the market and opportunities. Similarly, product managers must master forecasting techniques to understand product dynamics, coordinate with various departments, and understand market trends.
With effective forecasting methods, product managers will be in a great position to understand customers, plan production, and deliver the right products to the market. In this article, I discuss popular forecasting methods available for product managers.