How to implement forecasting

[naresh223]

Hi all,

How to implement Linear and Quadratic trends in TM1 for the historical years and future years.

Regards,
Naresh.

[David Usherwood]

TM1 doesn't have a stack of prebuilt stats functions, so you need to build from first principles. Wikipedia is your friend here:
http://en.wikipedia.org/wiki/Trend_stationary
I haven't used this, but I can record that I hand crafted an Internal Rate of Return calculation using TI, based on Newton-Raphson:
http://en.wikipedia.org/wiki/Newton-Raphson

[naresh223]

Hi David,

Thanks for clarifying my question.

I still have another question. If TM1 can be used to implement Planning, Budgeting, Forecasting application. How do we implement the forecasting applications, if the user has many forecasting methodologies. Is it a regular practice that we do these calculations in Excel or any other tools and insert these values in Contributor or in Architect. Can you please give me little more insight on this.

Regards,
Naresh.

[tomok]

How do we implement the forecasting applications

TM1 isn't a forecasting application, it's a tool set with which you can create a forecasting application. Much like you can use Visual Basic to create a checkbook balancing program. You need to take a training class and/or do a lot of reading about TM1 before asking for help. Such an open-ended question is not likely to get many replies. I could write a book about planning and forecasting in TM1.

[JDLove]

Is it a regular practice that we do these calculations in Excel or any other tools and insert these values in Contributor or in Architect. Can you please give me little more insight on this.

We tend to try and get as much as possible in the TM1 rules and TI as against having any calculations in excel.

I have found in various companies that some departments have rather complex models built in VBA or SQL Server, these have had considerable investment and in some cases you can find some reluctance to share the knowledge and it can get political.
Senior management may prefer to have "all" calculations in one tool but this is not always possible.

Actually in nearly all large projects I have come across this

[naresh223]

Thanks JD.