What’s the difference between forecasting and foresight?
Forecasting.
Forecasting is usually based on numbers using data from the past to project a linear path into the future. It is based on the assumption that past results are a reliable predictor of future results. Often forecasting involves more than one line as inputs to the forecast are adjusted to create different scenarios. As an example a forecast that has revenue growing in alignment with previous results as one line, a line for a 10% increase and a line for a 10% decrease to show 3 scenarios. Forecasting is usually only done over 3-18 month time frames.
Foresight.
Foresight is more about understanding a range of issues, signals and trends - it is more about exploring possibilities than predicting numbers. We create a range of scenarios from a wider selection of data over a longer time span like 5 to10 years into the future. We then look at each point, identify which are possible, probable and preferred futures and then think about the impact that these futures appearing could have on our business. This puts us in a strong position to plan and make decisions for impact and future growth with increased levels of confidence and greater reliability.
Difference between forecasting and foresight.
