Question

Topic: Strategy

Help Forecasting For New Business Unit

Posted by Anonymous on 7/5/2005 at 10:26 AM ET 250 Points
We're a software engineering firm starting a new business unit, completely unrelated to the existing business lines. Current problem is how to forecast -- with some degree of confidence -- when we don't have any useable historical data. Any suggestions?
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RESPONSES

  • Posted by Chris Blackman on 7/5/2005 at 11:23 AM Accepted
    Few ideas for you:

    1. Research the market as suggested above
    2. Create a group of experts and have them forecast using Delphi methodology...
    3. Approach industry associations and look for key mentors who can advise you of trends and likely uptake with a new product - and can act as "thought leaders" to help mould and influence market opinions.

    Whatever you do - test the ideas as you go along. So many engineering companies are so blinded by the light emanating from the holy grail of their new product, they fail to see any competitors, pitfalls, market weaknesses, production or logistic problems etc., until it's too late.

    Good luck.

    ChrisB
  • Posted by ReadCopy on 7/5/2005 at 12:06 PM Member
    I would assume that if you are starting a new business unit, then someone has looked in the market and worked out some basic forecasts on market size, buying patterns, your capacity, your expected penetration rate etc ... this will all indicate a forecast for you. If this hsn't been done then you need this basic information.

    Good luck > I think you might need it!
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