Behavior-Based Budget Management Using Predictive Analytics
Historically, the mechanisms to perform forecasting have primarily used two common factors as a basis for future predictions: time and money. While time and money are very important aspects of determining future budgetary spend patterns, organizations represent a complex system of unique individuals with a myriad of associated behaviors and all of these behaviors have bearing on how budget is utilized. When looking to forecasted budgets, it becomes a guessing game about how budget managers will behave under a given set of conditions. This becomes relatively messy when human nature is introduced, as different managers will react very differently under similar circumstances. While one manager becomes ultra conservative during periods of financial austerity, another might be un-phased and continue to spend as they have in the past. Both might revert into a state of budgetary protectionism masking what is truly happening at a budget holder level, in order to keep as much budget and influence as possible while at the same time sacrificing the greater good of the organization. To more accurately predict future outcomes, the models should consider both time and money and other behavioral patterns that have been observed across the organization. The field of predictive analytics is poised to provide the tools and methodologies needed for organizations to do just this: capture and leverage behaviors of the past to predict the future.
- Research Organization:
- Idaho National Lab. (INL), Idaho Falls, ID (United States)
- Sponsoring Organization:
- DOE - NE
- DOE Contract Number:
- DE-AC07-05ID14517
- OSTI ID:
- 1072389
- Report Number(s):
- INL/JOU-12-26713
- Journal Information:
- The Business Intelligence Journal, Vol. 18, Issue 1
- Country of Publication:
- United States
- Language:
- English
Similar Records
In Defense of the National Labs and Big-Budget Science
Analysis of combined hydrogen, heat, and power as a bridge to a hydrogen transition.