Predictive Forecasting in Dynamics 365

Predictive Sales Forecasting: Meaning

Dynamics 365 is a collection of software applications provided by Microsoft. It is an interconnected set of Software-as-a-Service applications with predictive forecasting capabilities. The collection of applications has been designed to assist customers and transform the patterns of business activities.

Dynamics 365 integrates data analysis and business logic processes. The applications within this collection help the user company to automate and integrate the sales and marketing functions. As a result, the organization can convert basic business leads into paying customers.

The whole system of applications is built on top of Microsoft Azure which provides a broad range of services. The applications within Dynamics 365 are very adaptable to the collective and departmental needs of the user organization.

Dynamics 365 is based on the Azure platform due to which benefits from the Microsoft cloud services as well. The whole stack of applications helps businesses to transform and employ a connected and intelligent business strategy.

‘Predictive Sales Forecasting‘ is one of the features of Dynamics 365. The term ‘Forecasting’ in business, implies the ability to predict the sales pattern of an organization.

The Dynamics 365 Predictive forecasting can be manual as well as performed by software. But, in the advanced contemporary world, technologies are being employed to perform predictive functions. The advanced machine learning technologies are being designed for three future sales patterns and possible trend changes.

Dynamics 365 performs this predictive function by extracting information patterns from the customer management systems of an organization. These data models are then projected into the future by the application system. Previously, the predictive analysis process was expensive and complex. But, the Microsoft Dynamics 365 Sales Insights perform these functions in a simpler and more cost-effective method. In the current business arena, companies are required to be prepared for any sudden changes in trends or sales patterns. This is where predictive analysis becomes instrumental in improving a certain company’s decision-making procedure.

Dynamics 365 predictive forecasting helps the user organization to improve their decision-making technique. This subsequently enhances the market value of the company.

Method of configuring Predictive Forecasting in Dynamics 365:

Certain prerequisites need to be fulfilled in order to configure Predictive forecasting in Dynamics 365. These include the assigning of the role of Administrator or Forecast Manager. The role needs to permit the user to perform tasks like creating, assigning and editing the forecast configurations for the organization.

Along with this, the user must be able to delete, activate or deactivate the forecast configurations too. Generally, an organization using the Dynamics 365 predictive forecasting has the forecasting feature enabled by default. In order to configure the forecasting techniques, the following steps need to be followed:-

• Navigate to the Forecast Configuration page.
• Sign in to the Sales Hub application.
• The site area map appears. Here, click on the Change area icon.
• Click on App Settings.
• The Performance Management option appears. Click on the Forecast Configuration.

After this, certain changes appear in the Sales Hub application. These include the following:-

1. The Forecasts option appears under the Performance option within the Sales Hub application.
2. The Forecast Category appears on the Opportunity form.

These categories are used to define the level of confidence of a company. In case it is required, an administrator can add the custom values that are specific to the organization in question. In the recent settings, the Forecast category field cannot be hidden in the Opportunity form with the help of visible by default field. If the organization does not wish to use the forecast category field, it can remove it from through customizations. The purpose of this configuration in Dynamic 365 predictive forecasting is to help the user company to utilize the predictive faculties to the fullest.

Advantages of Predictive Sales Forecasting:

In the modern competitive world, businesses are benefiting from predictive analytics techniques. The forecasting feature of predictive analytics in particular is helping organizations to transform their business patterns. This in turn boosts their sales and enhances their brand value.

Apart from this, predictive forecasting is proven to provide several other benefits to user organizations. Some of these advantages can be categorized as follows:-

• Gaining competitive advantage – The forecasting technique has data analysis at its core. Proper data analysis helps in recognizing relevant data models. These data models in turn provide the organization with data in the context of changing business trends. Finally, the user organization can be better prepared to handle changing business trends than other companies in the same arena.
• Recognizing new opportunities – Intelligent forecasting analytics is known to inform the user company about possible business changes in the future. These changing business trends or sales patterns can also indicate the need for a new service or product in the market. Thus, a company can be aware of any new opportunity arising in the market.
• Optimizing products and services – Companies are required to change their business patterns or enhance their product quality from time to time. Predictive forecasting helps the organization to recognize the impact of a certain service or product in the market. The improvements within a product or service can also be highlighted. So, predictive forecasting helps the company to improve its products according to changing trends.
• More customer awareness– The predictive analytics functions are performed based on the customer information derived by the system. In turn, the organization becomes aware of the changing needs and behaviour of the customers.
• Cost-effective – The process of Predictive forecasting in Dynamics 365 is simple yet very cost-effective. Other predictive analytics patterns require huge expenditure for deploying software and techniques. But, the Dynamics 365 predictive forecasting functions can be performed within the same system.
• Decreases Risks – One other advantage is that improved predictive analytics decreases the risks that the user company faced previously. The predictions about changing business trends can help organizations to prepare better. This in turn decreases business risks drastically.
• Addressing problems beforehand– The basic point of predictive forecasting is getting an idea about the possible business threats of the future. This will lead to organizations making well-versed decisions. In turn, companies can address their possible problems before they become too complex.
• Meeting consumer expectations – Along with several other advantages, companies can increasingly meet consumer expectations. The changing trends are indicative of what customers want. The companies can meet consumer expectations by performing proper forecasting functions.
• Improved collaboration – The companies can make well-informed decisions through predictive sales forecasting. As a result, companies can work in close cooperation with their internal departments.

Other than this, Forecasts help organizations to predict the average revenue the internal departments may generate. If the process is performed with expertise, it can contribute to the success of the company. Various authorities of the company use predictive forecasting for their purposes. These include the following:-

1. Sellers use this technique to track the performance of their lead targets. Along with this, they can recognize the possible risks that prevent the method of recognizing profitable targets.
2. Managers monitor individual sales target quotas. The deficient departments can be provided with additional training to improve.
3. Directors use the forecasting trends to predict the sales numbers of individual departments. The resources can be allocated according to the performance standards.
4. Organizational leaders utilize these predictive forecasts to estimate the changes to be made to product strategies. The investments can be allocated accordingly.

Customizing the Forecasting Layout:

Generally, organizations opt for the general patterns of forecasting techniques. But, for competitive purposes, companies should customize their forecast layout. This will help the system to perform predictive forecasting for the company according to its tailored needs.

To begin with, Option Set, which defines the confidence level of the company, has to be chosen. After this, the roll-up columns have to be configured accordingly. The date and number of fields for each of the columns have to be selected. In this way, organizations can customize their forecasting layouts to achieve better results from the services.

In Dynamics 365 predictive forecasting, the roll-up columns are not the only kind of columns available. After selecting the roll-up columns for the forecasting layout, the company can create some other columns too. These can be categorized as follows:-

• Calculated Columns: These columns help to combine several columns into one. This creates a gap for a quota column. It helps the sellers to recognize the gap between the current sales standards and the target sales patterns.
• Simple Columns: These columns are simple as their name suggests. They are created to store the data which the company intends to keep under control.
• Hierarchy-related columns: This column assists the system to pull information from the hierarchy into the column. It is usually done because the pulled out information is relevant for the particular forecast.

Conclusion:
Dynamics 365 predictive forecasting is increasingly becoming popular in the contemporary business market. The advanced applications within the software service provide several analytics services to user organizations. The predictive analytics patterns help organizations to mitigate risks more simply and cost-effectively. This is the reason why software companies have been increasingly opting for predictive forecasting from Dynamics 365.