Extended revenue forecasting within a service industry

Research output: Contribution to journalArticle

10 Citations (Scopus)

Abstract

Revenue forecasting is an important topic for management to track business performance and support related decision making processes (e.g. headcount or capital expenditure). It focuses on how a business recognises operating revenue, which can differ from the point at which a sales order is won. Whilst there are many publications detailing forecasting theory, in a business context these largely focus on sales order recognition alone.

This paper describes the development of a revenue forecasting tool appropriate for service provision. The organisation involved in the development of the revenue forecasting tool will remain anonymous for commercial reasons but will be referred to as “Organisation A”. The targeted outcome was to extend the forecast window from one month to three months with an error rate of no more than ±10%. The tool was required to consolidate supporting data, adopt appropriate analysis/projection techniques and extend the forecast window in a specific and complex business environment.

The resulting tool returned high level results that were aligned to the original targets, and was developed with three components using a combination of projection approaches appropriate to the operating environment. Whilst limited to a specific service industry as a trial, the paper provides a useful reference point for revenue forecasting in complex service businesses and provides a basis for further research opportunities for extended revenue forecasting and business analysis approaches within other service industries.
LanguageEnglish
Pages505-518
Number of pages14
JournalInternational Journal of Production Economics
Volume141
Issue number2
Early online date22 Nov 2011
DOIs
Publication statusPublished - Feb 2013

Fingerprint

Industry
Sales
Revenue
Service industries
Decision making
Decision-making process
Service business
Business support
Reference point
Business environment
Business analysis
Service provision
Capital expenditures
Business performance

Keywords

  • revenue forecasting
  • service industry
  • key client
  • routine and custom
  • extended revenue forecasting

Cite this

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Extended revenue forecasting within a service industry. / Whitfield, Robert; Duffy, Alexander.

In: International Journal of Production Economics, Vol. 141, No. 2, 02.2013, p. 505-518.

Research output: Contribution to journalArticle

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