ROLE OF FINANCIAL FORECASTING IN STRATEGIC BUSINESS DECISIONS: A DATA-DRIVEN APPROACH
Abstract
The role of financial forecasting in strategic business decisions is becoming increasingly significant as businesses navigate through volatile and competitive markets. This study focuses on the data-driven approach to financial forecasting and its impact on decision-making processes. The aim of this research is to explore how advanced data analytics and forecasting methods can enhance the accuracy and reliability of financial predictions, thereby improving strategic business decisions. The relevance of the topic stems from the need for businesses to adapt and respond to complex economic challenges, utilizing precise financial insights to drive long-term success. The research methodology involves a comprehensive review of existing literature, case studies, and the application of quantitative forecasting models that utilize historical data to predict future financial outcomes. The study also employs a comparative analysis of traditional financial forecasting techniques and modern data-driven approaches. Key findings indicate that businesses that incorporate advanced data analytics into their forecasting process tend to make more informed and effective strategic decisions, leading to improved financial performance and competitive positioning. The practical value of this article lies in its ability to provide businesses with actionable insights into how data-driven financial forecasting can be integrated into their decision-making frameworks. The study highlights the potential for businesses to reduce uncertainty, optimize resource allocation, and achieve sustainable growth by leveraging accurate financial forecasts. This research contributes to the growing body of knowledge on strategic management and offers valuable recommendations for organizations seeking to enhance their forecasting capabilities. In conclusion, financial forecasting, when approached with a data-driven mindset, is a critical enabler of strategic decision-making in today's dynamic business environment. By harnessing the power of advanced technologies and analytics, organizations can improve their forecasting accuracy, enhance their strategic planning capabilities, and secure a competitive edge in the marketplace.
References
Baker W., Kiewell D., Winkler G. Using big data to make better pricing decisions. McKinsey. URL: https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/using-big-data-to-make-better-pricing-decisions?utm_source=chatgpt.com
Литвиненко А. Менше витрачали, економили на дозвіллі й донатили на ЗСУ: Дослідження «Делойт» про споживацькі настрої українців. Deloitte. URL: https://www.deloitte.com/ua/uk/about/press-room/consumer-behavior.html
Addy W.A., Ofodile O.C., Adeoye O.B., Oyewole A.T., Okoye C.C., Odeyemi O., Ololade Y.J. Data-driven sustainability: How fintech innovations are supporting green finance. Engineering Science & Technology Journal. 2024. Vol. 5. № 3. P. 760–773.
Фурса В.А., Гнатенко Є.П., Гнатьєва Т.М. Економічна сутність і роль фінансового планування в системі управління підприємством. Український журнал прикладної економіки та техніки. 2023. Вип. 8. №2. С. 69–75.
Кужелєв М.О. Фінансові інновації у забезпеченні розвитку фінансового ринку. Стратегія і практика інноваційного розвитку фінансового сектору : зб. матеріалів ІV Міжнар. наук.-практ. конф., м. Ірпінь, 25–26 березня 2021 р. Ірпінь, 2021. С. 120–122.
Кужелєв М.О., Федина В.В., Щербина В.Ю. Напрями зміцнення фінансової безпеки підприємства в умовах економічної нестабільності. Економіка і управління. 2022. № 2. С. 73–78.
Алексін Г.О., Ковбаса В.А., Стащук, Д.М. Компаративний аналіз категорій «фінансове планування», «фінансове прогнозування» та «бюджетування» в ключі інституціоналізації фінансового управління: Погляд прикладних корпоративних фінансів. Академічні візії. 2024. № 34. DOI: https://doi.org/10.5281/zenodo.13325211
Adelani F.A., Okafor E.S., Jacks B.S., Ajala O.A. Theoretical insights into securing remote monitoring systems in water distribution networks: Lessons learned from Africa-US projects. Engineering Science & Technology Journal. 2024. Vol. 5. № 3. P. 995–1007.
Ajala O.A., Arinze C.A., Ofodile O.C., Okoye C.C., Daraojimba A.I. Exploring and reviewing the potential of quantum computing in enhancing cybersecurity encryption methods. Magna Scientia Advanced Research and Reviews. 2024. Vol. 10. № 01. P. 321–329. DOI: https://doi.org/10.30574/msarr.2024.10.1.0038
Ajala O.A., Arinze C.A., Ofodile O.C., Okoye C.C., Daraojimba O.D. Reviewing advancements in privacy-enhancing technologies for big data analytics in an era of increased surveillance. World Journal of Advanced Engineering Technology and Sciences. 2024. Vol. 11. № 1. P. 294–300.
Дослідження ринку споживчих товарів. Market Search. URL: https://marketresearch.ua
Максютенко І. Аналіз тенденцій розвитку електронної комерції. Економіка і суспільство. 2024. Вип. 64. С. 1–8. DOI: https://doi.org/10.32782/2524-0072/2024-64-54
Arinze C.A., Ajala O.A., Okoye C.C., Ofodile O.C., Daraojimba A.I. Evaluating the integration of advanced IT solutions for emission reduction in the oil and gas sector. Engineering Science & Technology Journal. 2024. Vol. 5. № 3. P. 639–652.
Національний банк України. Щорічний звіт. Bank.gov.ua. URL: https://bank.gov.ua/reports
Ernst & Young Global. Опитування EY в Україні та Американської торговельної палати в Україні – оцінка збитків компаній після 15 місяців повномасштабної війни в Україні. EY. URL: https://www.ey.com/uk_ua/newsroom/2023/06/ey-ukraine-and-acc-survey-results-june-2023
Висновок Європейської Комісії щодо заявки України на членство в Європейському Союзі / Європейська Комісія. Брюсель, 2023. С. 3–67.
Ayanda A.M., Bukola O.H., Adeyemi A.M., Mercy S. Sustaining employees and organizational productivity through technological change in consumers’ goods industry. DBA Africa Management Review. 2018. Vol. 8. № 1. P. 1–16.
Міністерство економіки України. Прогнози розвитку економіки України на 2024 рік. Me.gov.ua. URL: https://me.gov.ua/Documents/Detail?lang=uk-UA&id=77059300-efc0-4c61-8a67-3974e0cd27a5&title=PrognozEkonomichnogoISotsialnogoRozvitkuUkraini
Державна служба статистики України. Показники інфляції. Ukrstat.gov.ua. URL: https://ukrstat.gov.ua
Babatunde S.O., Odejide O.A., Edunjobi T.E., Ogundipe D.O. The role of AI in marketing personalization: A theoretical exploration of consumer engagement strategies. International Journal of Management & Entrepreneurship Research. 2024. Vol. 6, № 3. P. 936–949.
Baker W., Kiewell D., Winkler G. (2024). Using big data to make better pricing decisions. Available at: https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/using-big-data-to-make-better-pricing-decisions?utm_source=chatgpt.com
Lytvynenko, A. (2023). Menshe vytrachaly, ekonomyly na dozvilli y donatyly na ZSU: Doslidzhennia «Deloit» pro spozhyvatski nastroi ukraintsiv [They spent less, saved on leisure and donated to the Armed Forces of Ukraine: Deloitte study on consumer sentiment among Ukrainians]. Available at: https://www.deloitte.com/ua/uk/about/press-room/consumer-behavior.html [in Ukrainian].
Addy W.A., Ofodile O.C., Adeoye O.B., Oyewole A.T., Okoye C.C., Odeyemi O., Ololade,Y J. (2024). Data driven sustainability: How fintech innovations are supporting green finance. Engineering Science & Technology Journal, vol. 5(3), pp. 760–773.
Fursa V.A., Hnatenko Ye.P., Hnatieva, T.M. (2023). Ekonomichna sutnist i rol finansovoho planuvannia v systemi upravlinnia pidpryiemstvom [Economic essence and role of financial planning in the enterprise management system]. Ukrainskyi zhurnal prykladnoi ekonomiky ta tekhniky – Ukrainian Journal of Applied Economics and Technology, vol. 8(2), pp. 69–75 [in Ukrainian].
Kuzheliev M.O. (2021) Finansovi innovatsii u zabezpechenni rozvytku finansovoho rynku [Financial innovations in ensuring the development of the financial market]. Stratehiia i praktyka innovatsiinoho rozvytku finansovoho sektoru: zb. materialiv IV Mizhnar. nauk.-prakt. konf (Irpin, March 25–26, 2021). Irpin: State Tax University, pp. 120-12). [in Ukrainian].
Kuzheliev M.O., Fedyna V.V., Shcherbyna V.Iu. (2022). Napriamy zmitsnennia finansovoi bezpeky pidpryiemstva v umovakh ekonomichnoi nestabilnosti [Directions for strengthening the financial security of an enterprise in conditions of economic instability]. Ekonomika i upravlinnia – Economy and Management, no. 2, pp. 73–78 [in Ukrainian].
Aleksin H.O., Kovbasa V.A., Stashchuk D.M. (2024). Komparatyvnyi analiz katehorii “finansove planuvannia”, “finansove prohnozuvannia” ta “biudzhetuvannia” v kliuchi instytutsionalizatsii finansovoho upravlinnia: Pohliad prykladnykh korporatyvnykh finansiv [Comparative analysis of the categories of "financial planning", "financial forecasting" and "budgeting" in the context of the institutionalization of financial management: The view of applied corporate finance]. Academic Vision – Akademichni vizii, no. 34. DOI: https://doi.org/10.5281/zenodo.13325211 [in Ukrainian].
Adelani F.A., Okafor E.S., Jacks B.S., Ajala O.A. (2024). Theoretical insights into securing remote monitoring systems in water distribution networks: Lessons learned from Africa-US projects. Engineering Science & Technology Journal, vol. 5(3), pp. 995–1007.
Ajala O.A., Arinze C.A., Ofodile O.C., Okoye C.C., Daraojimba A.I. (2024). Exploring and reviewing the potential of quantum computing in enhancing cybersecurity encryption methods. Magna Scientia Advanced Research and Reviews, vol. 10(01), pp. 321–329. DOI: https://doi.org/10.30574/msarr.2024.10.1.0038
Ajala O.A., Arinze C.A., Ofodile O.C., Okoye C.C., Daraojimba O.D. (2024). Reviewing advancements in privacy-enhancing technologies for big data analytics in an era of increased surveillance. World Journal of Advanced Engineering Technology and Sciences, vol. 11(1), pp. 294–300.
Market Research. (2024). Doslidzhennia rynku spozhyvchykh tovariv [Consumer goods market research]. Available at: https://marketresearch.ua [in Ukrainian].
Maksiutenko I. (2024). Analiz tendentsii rozvytku elektronnoi komertsii [Analysis of electronic commerce development trends]. Ekonomika i suspilstvo – Economics and Society, no. 64, pp. 1–8. DOI: https://doi.org/10.32782/2524-0072/2024-64-54 [in Ukrainian].
Arinze C.A., Ajala O.A., Okoye C.C., Ofodile O.C., Daraojimba A.I. (2024). Evaluating the integration of advanced IT solutions for emission reduction in the oil and gas sector. Engineering Science & Technology Journal, vol. 5(3), pp. 639–652.
National Bank of Ukraine. (2024). Shchorichnyi zvit [Annual report]. Available at: https://bank.gov.ua/reports [in Ukrainian].
Ernst & Young Global. (2023). Opytuvannia EY v Ukraini ta Amerykanskoi torhovelnoi palaty v Ukraini – otsinka zbytkiv kompanii pislia 15 misiatsiv povnomasshtabnoi viiny v Ukraini [Survey by EY Ukraine and the American Chamber of Commerce in Ukraine – assessing the losses of companies after 15 months of full-scale war in Ukraine]. Available at: https://www.ey.com/uk_ua/newsroom/2023/06/ey-ukraine-and-acc-survey-results-june-2023 [in Ukrainian].
European Commission. (2023). Vysnovok Yevropeiskoi Komisii shchodo zaiavky Ukrainy na chlenstvo v Yevropeiskomu Soiuzi [Opinion of the European Commission on Ukraine's application for membership in the European Union]. Brussel: Publications Office of the European Union [in Ukrainian].
Ayanda A.M., Bukola O.H., Adeyemi A.M., Mercy S. (2018). Sustaining employees and organizational productivity through technological change in consumers’goods industry. DBA Africa Management Review, vol. 8(1), pp. 1–16.
Ministry of Economy of Ukraine. (2024). Prohnoz ekonomichnoho i sotsialnoho rozvytku Ukrainy na 2024-2026 roky [Economic and social development forecast for 2024]. Available at: https://me.gov.ua/Documents/Detail?lang=uk-UA&id=77059300-efc0-4c61-8a67-3974e0cd27a5&title=PrognozEkonomichnogoISotsialnogoRozvitkuUkraini [in Ukrainian].
State Statistics Service of Ukraine. (2024). Pokaznyky infliatsii [Inflation indicators]. Available at: https://ukrstat.gov.ua [in Ukrainian].
Babatunde, S. O., Odejide, O. A., Edunjobi, T. E., & Ogundipe, D. O. (2024). The role of AI in marketing personalization: A theoretical exploration of consumer engagement strategies. International Journal of Management & Entrepreneurship Research, vol. 6(3), pp. 936–949.
