Understanding the impact of potential opportunities of new technologies, population changes and many other external factors affecting the market, is a vital part of a company’s success. Historical data from both your organization and a competitor’s organization will allow you to identify and track market trends as well as predict future trends.
When building a strategic roadmap, is important to understand where to star, what is changing and how will that happen, and company leaders have to identify the biggest opportunities starting by a trend analysis. Future trends can be about large subjects mostly because everything that’s changing create the future. First companies need to know what are seeking to understand then identify the data sources, finding a source of information about what’s changing, understanding how data was collected and having faith that the information could be used as the basis of a strategic decision. Enterprises must understand, collect, analyze and interpret data. Observing changes in society, culture and people’s behavior is an important skill in forecasting giving actionable insights for defining and delivering a competitive vision. A proper trend analysis must have a sort of delivery mechanism. There must be a final, cohesive product or service that ties together what was learned from the activity.
Trend analysis means looking at how a potential driver of change has developed over time and how is likely to develop in the future. This does not mean to predict how the future will look like but is a powerful tool for strategic planning thanks to the creation of a plausible and detailed picture of what the future might look like. This help companies in determine what to do, why do it and how innovate both immediately and in long term from the strategic planning to proposition development by predicting the direction that the market will take moving forward. By combining several category trends and considering the questions that raised by each, a sector development can be generated.
Is important to say that trend analysis not only regard external trend but also internal one because is important understand the trends that are happening within your business which include the factors you can control. Look at trends by department like the performance of your sales, human resources, production, marketing, information technology, employee costs and turnover debt, profits margins and gross profits. Understanding your internal trend for a period or specific time or year, let you plan production, inventory and labor and capital needs in advance.