Forecast in Planning Analytics with AI

AI and Forecasting in Planning Analytics
Written by Mike Bernaiche, October 14th 2021

Did you know that you can forecast in Planning Analytics Workspace by using automated tools that model time dependent data?  What does this mean for you?  You can take a series of time related data and let Planning Analytics suggest a forecast for the coming years based on statistics and trends from years past.  You can create a forecast, forecast low or forecast high version simply based on the trends of the past.  Below I will walk you through the steps to get started and create a forecast in Planning Analytics.

Requirements to use Forecasting

Time Dimension

  •  One or more time dimensions can be used to forecast against, and they must all appear on the column of the exploratory view.  In either case, the leaves must result in contiguous, evenly spaced periods of time.

Historical Data

  •  The historical data must represent at least double what is being forecasted.
  • The historical data must represent at least two seasons of data if it has seasonality.  For example, if the data cycles yearly and the leaf time members are at a month level of granularity, then it must have at least 24 months of data in the history.  This way, the feature can automatically detect the cycle.

Forecasting Data Cells

  •  The historical data must represent at least two seasons of data if it has seasonality.  For example, if the data cycles yearly and the leaf time members are at a month level of granularity, then it must have at least 24 months of data in the history.  This way, the feature can automatically detect the cycle.

Version Dimension

  •  The version dimension, if you want to use one, must appear in the context of the exploratory view.
AI and Forecasting in Planning Analytics

In the example above we have historical data to 2013 and will be forecast 2014 to 2019.

The Process to Forecast in Planning Analytics

The process starts by highlighting the members you want to forecast.  In the example below you will see that I selected all members shown.  Then click the forecast button .  This will open the forecast dialog box.  You will see 2 options.  Set up and advanced.  The first forecast we will create is in the set-up area.  I am forecasting years 2013 to 2019 based on the set up below. 

forecast button
forecast in planning analytics

Once you have selected everything correctly you will see the preview and forecast button enable and you can select one.  Preview will provide the below info.  You will see I changed the drop down to member 4 and the accuracy based on the AI in the Planning Analytics is high.

forecast preview

If you click the statical details tab you will see all the different statistical points.  This is for all of you data scientist out there!  You can click the learn more link and it will open a window that explains all of this information.

statistical details

If you like what you see you can simply close the preview window and click forecast.  The process will run and you will see all of the forecasted data in the cube.  You will notice the comment flag in 2013.  If you open the comments, you will see that the system has added in the statical information for each member.

forecasted data
comments

Advanced Tab Forecast

Keeping the time frame loaded in the set-up tab, you can now choose to have the forecast written to the optional version dimension (if you created one for your cube).  You can also ignore certain time frame(s).  This can be useful for times like the last 18 months of Covid data that may skew your data high or low, depending on your business.  Now you can select the version dimension and hierarchy.  And assign where you want the values to be loaded.  See below.

select version dimension and hierarchy

Now hit the forecast button and watch the forecast in Planning Analytics get loaded into the version dimension.  I moved the version dimension to the rows to show the below results.  As you can see Planning Analytics wrote data to the Forecast, Forecast Low and Forecast High fields.

forecast low and high

For detailed information on Forecast in Planning Analytics

Forecasting - IBM Documentation

For what is new in Planning Analytics Workspace

What’s New in IBM Planning Analytics Workspace Version 64, 65 and 66 - Lodestar Solutions

Summary

As you can see the process is very simple to get the automated forecast in Planning Analytics.  Take your planning process to the next level with this automated forecasting process.  Is it perfect, no.  But does it give you a great starting point with some artificial intelligence, yes!  For more information on forecasting or anything else planning analytics related reach out to us at services@lodestarsolutions.com

Are you ready to become a Transformational Leader?

Are you wondering how you become the transformational leader?  Lodestar Solutions is here to help!  You might want to check out our blog, It’s Time for CFOs to Leverage Transformational Planning.  

But more importantly Enroll in our complimentary webinar on Thursday, November 18th  from 10:30am-noon Eastern.

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In this webinar you will discover:

  •  Why every CFO must discover and lead Transformational Planning
  • How to identify where the quick wins are in your organization
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