FGV IBRE launches software that forecasts business results one year ahead
Understanding the situations that a company may encounter a year from now can be crucial to its expansion or even its survival. Based on business people’s need to predict what might happen in future and to help them make better decisions, the innovation team at Fundação Getulio Vargas’ Brazilian Institute of Economics (FGV IBRE) has created Easy Forecasting, a time series forecasting software program. This tool lets companies of different sizes and sectors project sales figures, prices, costs, profits and productivity, among other indicators.
It works as follows: users enter their product or service data into the platform, which contains various statistical and machine learning models, and it then generates the results. No technical knowledge about subjects such as artificial intelligence or statistics is needed. The software program itself indicates to users which model best predicts the inputted variables, and also makes other analyses available – something that is useful for users with advanced knowledge.
“We wanted to align our knowledge of statistics and forecasting with the potential of machine learning and big data, in order to create an easy-to-use, low-cost tool to help companies plan, set targets, establish pricing policies and model future scenarios,” says Pedro Guilherme Costa Ferreira, one of the project’s creators.
In trials involving around 70 companies, including IBGE, XP Investimentos, BTG Pactual, Santander, TV Globo, Accenture, PagSeguro, Unicamp, Vale, the Brazilian Central Bank, TIM and Petrobras, it was found that the tool can have different applications.
“Companies’ margins are much smaller these days. So, any lost revenue or growth in costs has a big impact on businesses. It is essential to perform future planning and test different scenarios. Furthermore, companies in general are taking more precautions and those that aren’t are falling behind in terms of best practices,” Ferreira says.
To find out more about the software program, watch this webinar: https://www.youtube.com/watch?v=T9IVBFjXVkQ