By Donna Estrada
According to Pew, by 2020, the use of Big Data will improve our understanding of ourselves and the world and that ‘nowcasting’ or real-time data analysis, and pattern recognition will surely get better. This is the reason why the people in the business sector opt to incorporate the ‘nowcasting’ in their company instead of depicting the future through forecasting. Usually, forecasts for the next 0-2 hours are called nowcasting (NWC), from 2-12 hours very short-range forecasting (VSRF).
The business sector gave value to the effects that nowcasting more than forecasting could give. With the advent of social media, that fact is even more apparent as people rely on minute-by-minute updates for things like the news. These real-time updates can be an advantage to the organization as long as the data that were given is accurate.
Now, your question might be, can nowcasting help improve your business?
Helps you prepare for the present
You may ask if how nowcasting works. On a study entitled: Statement of Guidance for Nowcasting and Very Short Range Forecasting, nowcasting techniques use extrapolation of observations, applying heuristic rules to modify these observations into the future.
Once the businessman knew how to track the progress of their company, it will be easier for him to be able to prepare himself for the upcoming threats that his business will face. Nowcasting contributes a lot on by studying the possible problems that will occur out of the data found. Since nowcasting is the task of predicting the present, it can manage to deal successfully with the possible issue that will occur.
You’ll be prepared with the innovation
The right information at the right time can be the differentiator between business success and failure. If your business has the real-time data that could track your progress everyday, you will have an idea on how to improve your business. May it be relocating your business or expanding it to cater your customers’ needs. Once you have known the possibilities of relocation in advance, you can prepare what you need for moving. Since in business, time shouldn’t be wasted, you need to be prepared of the unplanned situations.
You’ll know your future consumers
How you reach your target audience changes as the time goes by. Your avid consumers might learn not to patronize your goods. The worst case scenario would be: the product that you’re presenting might be not acceptable to them anymore. Most especially to the younger generation, which is known as the millennials. For example, if you’re an owner of a restaurant, if you have knowledge to the current trends about your business, you will start reinventing your product so that your customers will get interested to purchase it.
Millennial workforce impacts how businesses are run on the whole. Since millennials are composed of 92 million people which made them surpass the population of the baby boomers. This is the reason why companies should shift their focus and create new marketing strategies for this generation.
It adds up to the quality of your business
Price forecast in commodity market remains an important part of export activities, especially for developing countries but nowcasting of price of primary commodity markets is a key factor to macroeconomic policy planning. How can nowcasting be relevant to macroeconomics and not in microeconomics? It is because former focuses on trends in the economy and how the economy moves as a whole while the latter focuses on the smaller factors that affect choices made by individuals and companies.
You’ll be updated of unemployment rate
If you think that employment rate won’t matter to your business, think again. You will not be able to see the overall economic increase without statistics of the job growth. The unemployment rate could weaken consumers’ purchasing power. When a person is unemployed, there will be a lesser chance for him to afford to buy what he wants. Since the most integral part when you’re having a business are customers, if there are an inadequate number of employment rate, fewer people will be buying, and the retail sector will decline.
Why is it that you really need to keep track of your business’ data?
Data is essentially the plain facts and statistics collected during the operations of a business. They can be used to measure/record a wide range of business activities – both internal and external. While the data itself may not be very informative, it is the basis for all reporting and as such is crucial in business.
The question: “Isn’t it that information is much important than data?” No, it’s not because information can’t be formed if there are no data that can support the information that has been disseminated.
Being able to have nowcasting is essential to the company since it can give an edge to the business. If the industry will just rely on the old information, it will not surely catch up with the latest trends and innovations in the business. Having the information in real time lets you address the problem today rather than next week or month.