Common High-Level Forecast Usage Examples

This chapter provides you with examples of the ways in which forecasts can be used. Using a number of examples, it offers a glimpse into the requirements of different situations. It also describes how administrators and users can create and use these different forecasts.

This chapter contains the following topics:

Use this topic after learning the details of how to create forecasts using the Siebel application as described in the rest of this guide. This topic is designed to familiarize you with how forecasts are used.

The following examples illustrate situations in which you can decide to forecast. Each specific situation discusses, in general terms, what steps an administrator and user performs to forecast a certain way. Each example is not detailed enough to allow you to perform each task. Use this section to gain an understanding of how forecasts work with regard to the data you want to analyze.

Product Quantity Forecasting

Often users need forecasts that break down revenues according to business requirements. For example, they sometimes want revenues grouped by Account by Product by Product Line.

Forecast Requirements

The forecast must group results by Accounts, by Product Line within the accounts and by Products within product lines (three dimensions).

Administrator Usage Example

The administrator:

Creates a forecast series with Quarterly summary period type and Monthly Interval period.
Specifies simple Auto and Associated Search Specs. For example, the Auto Search Spec is set as follows:
```
[Calculated Primary Flag] = ‘N’ AND [Committed] = ‘Y’ 
```
The Associated Search Spec is set as follows:
```
[Calculated Primary Flag] = ‘N’
```
Defines the aggregation dimensions as follow:
```
Account 1 
Product Line 2 
Product 3 
```
Defines Forecast Dates, at least one for each quarter.
Defines Forecast Participants to include the managers and subordinates.

User Revenue Example

The user:

Adds new opportunities with assigned accounts.
Maintains relevant opportunity data including revenue records with product line, product, quantity, price, and calculated revenue values.

User Forecast Example

The user:

Creates a new forecast based on the forecast series.
Users can use the Forecast Summary view to easily find out the forecasted revenue and quantity of the products being forecasted and sold in each quarter of the year.
Analyzes all revenue records in the List and Tree view tabs.
Makes adjustments for individual products, aggregated revenues for Product Lines, as well as total revenues for some Accounts.
When changing the revenue or quantity values for a particular product, the adjusted value is automatically rolled up to its parent Product Line and in turn to its immediate parent Account. The same is true for changes to the revenue/quantity values for a Product Line or Account, that is, their respective aggregated values are rolled up to their immediate parent (for example, Account rolls up to Date).
Submits the forecast.

Opportunity Forecasting

Users often need a sales pipeline and actual revenues to proactively manage key deals, allocate sales resources, manage sales costs, and respond to competitive or industry trends.

Forecast Requirements

The forecast must allow opportunity management consistent with the company’s sales methodology, for example, sales stage, revenue class, and probability.

Administrator Usage Example

The administrator defines a forecast series with the name WW Sales. The Auto Forecast Search Spec is set as follows:

[Calculated Primary Flag] = 'Y'

This search pulls opportunity-level revenue items into the forecast.

User Revenue Example

The user:

Adds a new opportunity.
Maintains relevant opportunity data.
(Optional) Uses the Revenue Type field in each revenue item to add booked, billed, and actual status as revenue data is actualized over time. Users can use the Revenue Class field to categorize each revenue item with service/hardware/software attributes.

User Forecast Example

The user:

Creates a new forecast based on the WW Sales forecast series.
In the Details view, users can see opportunity data they are working on being automatically pulled into their forecast.
Makes adjustments and views the adjustment history.
Submits the forecast.

Service Forecasting

Often users need a service pipeline, a backlog, and actual revenues for capacity planning, resource allocation, and service product planning.

Forecast Requirements

The forecast must include revenue scheduling, spreadsheets, services as products, easy to add recurring revenues, and pull scheduled revenue into the correct lengths of time.

Administrator Usage Example

The administrator defines a forecast series with the name Service. The Auto Forecast Search Spec is set as follows:

[Product] IS NOT NULL and [Calculated Primary Flag] = 'N'

This search specification pulls revenue line items that have a product indicated into the forecast.

User Revenue Example

The user:

Creates a new opportunity or project.
Associates and creates revenues using revenue scripts or revenue plans to establish a revenue group ID.
Uses the revenue spreadsheet to view and maintain revenues over the scheduled time. As revenues become backlog or actual revenues, they must be updated by the practice manager.
Uses revenue charts and reports to graphically display data and to perform ad hoc analysis.

User Forecast Example

The user:

Creates a forecast based on the Service forecast series.
In the Details view, uses the spreadsheet and chart views to evaluate and adjust scheduled revenues.
Uses predefined queries to see details by service.
Submits the forecast.

Product Level Forecasting

Often users need product-level forecasts for:

Demand planning (product and quantities)
Revenue management (price and revenue)
Margin management (cost and margin analysis)
Operations planning (inventory and demand)
Product marketing decisions (product mix, discount analysis, and pricing strategies)

Forecast Requirements

The forecast needs:

To associate multiple products to one opportunity or account
The ability to auto-quote from opportunity revenues
Spreadsheet-like functionality to manage recurring revenue products or milestone-based product deliveries
The ability to add product price, quantity, cost and margin
The ability to see the product hierarchy.

Administrator Usage Example

The administrator defines a product forecast series. The Auto Forecast Search Spec is set as follows:

[Product] IS NOT NULL and [Calculated Primary Flag] = 'N'

This search specification pulls product revenue line items that have a product indicated into the forecast.

User Revenue Example

The user:

Creates a new opportunity or account.
Associates and creates product revenue line items using the New Record command, revenue scripts, or revenue plans.
Uses the revenue list or spreadsheet views to edit and maintain product revenues. The user adds values in the following fields: Qty, Cost, Margin, Price, and Product Line.
Uses revenue charts and reports to graphically display data and to perform ad hoc analysis. For example, the user creates charts and reports with parameters of:
- Quantity by product line by month
  OR
- Margin by product by quarter

User Forecast Example

The user:

Creates a forecast based on the product forecast series.
In the Details view, uses the spreadsheet and chart views to evaluate and adjust product revenues.
Uses forecast detail filters to see details by product.
Uses charts and reports to perform analysis.
Submits the forecast.

Note: To roll up total quantity, the administrator needs to make the quantity rollup available in the total forecast. This is a simple configuration procedure.

Cost-Margin Forecasting

Many companies emphasize cost and margin analysis in product planning and sales strategy. Such companies want to use cost and margin analysis to drive lifetime value.

Forecast Requirements

The forecast must allow users to evaluate costs and margins on each opportunity or product revenue to determine the value of a deal. There is a need to evaluate these costs and margins over a series of scheduled revenues, as some opportunities lose money initially, but can be highly profitable over the long term.

Administrator Usage Example

The administrator defines a product cost/margin forecast series. The Auto Forecast Search Spec is set as follows:

[Product] IS NOT NULL and [Calculated Primary Flag] = 'N'

This search specification pulls product revenue line items that have a product indicated into the forecast.

User Revenue Example

The user:

Creates a new opportunity or account.
Associates and creates product revenue line items using the New Record command, revenue scripts, or revenue plans.
Instead of adding just revenue information, adds cost data for every product added.
Using the revenue spreadsheet, views each product and its cost and margin expectations by month or week. The user can modify these costs and margins accordingly and view them graphically using the Chart view.

Note: The spreadsheet needs to be configured so that Cost and Margin are made available for each date.

User Forecast Example

The user:

Creates a forecast based on the product cost/margin forecast series.
In the forecast Details they see the revenues they are working on automatically pulled into their forecast.
Views the total revenue expected from each of these revenues from the Forecast Details list view, or views the cost and margin expectations over time for each product using the spreadsheet view.
Views a graphical presentation of this data using the Chart view, or by creating reports.
Adjusts and submits the forecast.

Note: This example requires minor configuration to the revenue spreadsheet view to see the Cost and Margin by each date. For more information about configuring the revenue spreadsheet view, see About Configuring Revenue and Forecast Spreadsheets.

Worst, Expected, Best (WEB) Forecasting

Sometimes there is a need for Worst, Expected, Best (WEB) analysis to evaluate the current state of business and to better allocate sales resources. WEB analysis examines the values in the following fields: Worst Case, Expected Revenues, and Best Case.

Forecast Requirements

The forecast must allow evaluation of each opportunity, product revenue, or service revenue using WEB analysis.

Administrator Usage Example

The administrator defines a forecast series with the name WEB. The Worst Case, Expected Revenue, and Best Case data is preconfigured to be pulled into the forecast.

User Revenue Example

The user:

Creates a new opportunity or account and associate the Worst Case, Expected Revenue, and Best Case values to the opportunity revenue or the associated product revenue.

User Forecast Example

The user:

Creates a new forecast based on the WEB forecast series.
The correct revenues with their WEB data are automatically pulled into the forecast.
Adjusts and submits the forecast.

Partner Forecasting Option I: Partner Portal

Sometimes a partner’s revenues are a large part of a company’s overall revenues, and they need to be more proactive in managing such revenues, measuring the partners, and allocating resources to the channel partners.

In this example, a partner user is responsible for entering partner revenues through the Partner Portal and for creating the forecast.

Forecast Requirements

The forecast must incorporate partner opportunities and revenues automatically.

Administrator Usage Example

The administrator defines a forecast series with the name WW Sales. The Auto Forecast Search Spec is set up as follows to include partner revenues:

[Partner] IS NOT NULL and [Committed] = 'Y'

This search specification pulls revenue line items that have a partner indicated into the forecast.

The administrator makes sure the correct participant’s name or organization is associated with the forecast series. For more information, see Siebel Partner Relationship Management Administration Guide.

User Revenue Example

The partner user:

Enters revenues using the Partner Portal and creates appropriate opportunities and product revenues.
Creates scheduled revenues and uses the Chart view to see data graphically.

User Forecast Example

The partner user:

Creates a standard forecast as if they were part of the sales force, WW Sales.
Makes adjustments and submits the forecasts to their appropriate internal partner manager.
The partner manager then:
Creates their own forecast.
Reviews, and adjusts the partner’s forecast (which is automatically pulled into the partner manager’s forecast), and submits it.

For more information, see Siebel Partner Relationship Management Administration Guide.

Partner Forecasting Option II: Triggered by Partner Manager

Sometimes, a partner's revenues are a large part of a company’s overall revenues and the company needs to be more proactive in managing these revenues, measuring the partners, and allocating resources to the channel partners.

In this example, a partner manager is responsible for entering partner revenues and for creating the partner forecast.

Forecast Requirements

The forecast must incorporate partner opportunities and revenues using an internal source, such as a partner manager, to minimize partner's responsibilities.

Administrator Usage Example

The administrator defines the partner forecast series. The Auto Forecast Search Spec is set up as follows:

[Partner] IS NOT NULL OR [Opportunity Primary Organization Partner Flag] = 'Y'

This search specification pulls revenue line items that have a partner indicated into the forecast.

Then, the administrator makes sure the partner manager is associated with the forecast and that the partner manager’s positional hierarchy rolls up correctly for the forecast process. For more information, see Siebel Partner Relationship Management Administration Guide.

User Revenue Example

The partner manager:

Enters partner revenues or else they are imported into the Siebel application.
Maintains and manages the partner-specific revenues in the Partners, then Revenues view or the Accounts or Opportunities, then Revenues view.

User Forecast Example

The partner manager:

Creates a partner forecast or sales forecast and the partner revenues are automatically pulled into the forecast.
Reviews, adjusts, and submits the forecast to their manager.

For more information, see Siebel Partner Relationship Management Administration Guide.

Opportunity Product Forecasting

A company sometimes needs to forecast both opportunity and product revenues related to opportunities, but only wants to see forecast details by opportunity.

Forecast Requirements

The forecast must incorporate both opportunity and product revenues related to opportunities.

Administrator Usage Example

The administrator defines an opportunity product forecast series. The Auto Forecast Search Spec is set as follows:

[Product] IS NOT NULL and [Calculated Primary Flag] = 'N'

This search specification pulls product revenue line items that have the product indicated into the forecast.

User Revenue Example

The user:

Creates a new opportunity.
Associates and creates product revenue line items using the New Record command, revenue scripts, or revenue plans.
Uses the Revenues list or spreadsheet views to edit and maintain product revenues (add quantity, cost, margin, price, and product line).
Uses revenue charts and reports to graphically display data and to perform ad hoc analysis. For example, the user can create charts and reports with the parameters revenue by opportunity or quantity by opportunity.

User Forecast Example

The user:

Creates an opportunity product forecast.
In the Details view, uses the spreadsheet and chart views to evaluate and adjust product revenues.
Uses charts and reports to view product revenues by opportunity and to see aggregates of product quantity and revenue by opportunity.
Uses queries to view live forecast details by opportunity.
Preconfigured, these queries are set up to query by product.
Adjusts and submits forecasts.

Note: To roll up total quantity, the administrator needs to make the quantity rollup available in the total forecast. This is a simple configuration procedure. Also, to use the forecast queries to filter opportunities, the administrator needs to configure this.

About Forecasting Opportunity Products

The Expected Delivery Date field in the Opportunities screen, then the Products view, determines the column (month) into which that product falls in the forecasting views. For example, several opportunity products can be combined into one product forecast record. The value that is seen for January for product x can be an aggregation of several opportunity product records. If the date on one of those records is changed, thereby knocking it out of the forecast, other records can still remain with slightly lower quantities or a slightly different average price.

Weighted Average-Expected Revenue Forecasting

Users often have a large set of opportunities or products and want to manage total forecast by evaluating the probability of each deal.

Forecast Requirements

The forecast must allow expected value forecasting using revenue, probabilities (driven by sales stages), and expected revenue.

Administrator Usage Example

The administrator defines an expected revenue forecast series. The forecast series search definition depends on the specific data need. Critical to the success of this method is the need for the sales operations team to clearly define the following:

Proper sales stages.
The criteria necessary to move with the next sales stage.
The probabilities that are associated with each sales stage. Sales operations need to modify the probabilities as the process and market environment change.
A method for managers and sales representatives to keep these sales stages accurate.

User Revenue Example

The user:

Creates a new opportunity or revenue items.
Associates the proper sales stage with each opportunity or revenue item. The probabilities are automatically created and the expected revenue is automatically calculated.

User Forecast Example

The user:

Creates a new expected revenue forecast that automatically pulls in the correct revenues with their probabilities, sales stages, and expected revenues.
Adjusts and submits the forecast.

Global Account or Product Forecasting

A global account or product can be forecasted in three ways as described in the following sections.

Global Account Forecast Snapshot

Perform a global forecast that pulls in only data from the key accounts or one account. Set the forecast’s visibility to All Revenues and the Auto Forecast Search Spec to Account = ‘CompanyName*’.

Note: You can also do this for a Product Line or Division.

Ad Hoc Global Account Revenues Screen

Predefined query is saved in the Revenues screen and used for EIS reporting, business intelligence, and exporting.

Define and save a predefined query in the Revenues screen as follows:

Account = CompanyName and [Calculated Primary Flag] = ‘Y’ (for opportunity level 
revenue management)

Note: You can also define and save a predefined query for a Product Line or Division.

Account Revenues Management

Manage and evaluate revenues associated with an account from the Revenues view in the Accounts screen.

Note: You can also manage and evaluate revenues by Product, Contact, Partner, or Project.

Indirect Sales Forecasting

This type of forecasting allows participants to roll up and submit their forecasts to managers outside of their reporting hierarchy.

Forecast Requirements

The forecasts must roll up to the manager as defined by the forecast hierarchy and not by the position hierarchy (which is the default).

User Revenue Example

The user:

Creates revenue line items and opportunities so that they can be rolled up.

Administrator Usage Example

The administrator:

Creates a forecast series where:
- Visibility is defined as My Revenues - Indirect Sales.
- The Submit To position for each participant in the forecast series is specified (as required).

User Forecast Example

The user:

Creates a new forecast based on the forecast series
Reviews the manager-subordinate relationships.
Reviews the revenue details of direct and indirect subordinates, as defined by the forecast series.
Submits the forecast.

Forecast Summary Spreadsheets

Often users want to view the aggregated summary of a forecast in a spreadsheet format. Summary Spreadsheet view is a read only view that allows users to view Total Revenues combined by period. The period for the combined Total Revenues is in the Summary Period Type field in Forecast Series.

Forecast Requirements

The user must be able to view a forecast summary spreadsheet.

Administrator Usage Example

The administrator:

Creates a Summary Only quarterly forecast series where:
- Aggregation levels are defined
- Summary Period Type is defined

User Forecast Example

The user:

Generates a forecast in the forecast series defined by the administrator
Navigates to the Forecast, and selects the Summary Spreadsheet view
The user will be able to see the Total Revenues and Last Forecast Total Revenues in a spreadsheet format. The data is shown using aggregation levels defined in Forecast Series and the revenue is combined by the period defined in the Summary Period Type field in Forecast Series. The Total Revenues reflects the amounts after adjustment.

Note: The Last Forecast Total Revenues columns can be hidden using Siebel Tools.

Last Forecast Adjustment Amounts

Often users require the ability to view the last forecast adjustments while making adjustments to the current forecasts. Two columns in the Summary Tree and Summary List views allow users to quickly reference the corresponding summary records of the last forecast generated in the same series :

Last Forecast Adjustment
Last Forecast Total Revenue

Forecast Requirements

After a forecast has been created, the Summary Tree and List views will be visible. The user will then be able to view the corresponding numbers from the previous forecast in the Last Forecast Adjustment and Last Forecast Total Revenue columns.

Administrator Usage Example

The administrator creates a Summary Only quarterly forecast series where the forecast has multiple forecast dates.

User Forecast Example

The user:

Generates a forecast in the forecast series defined by the administrator
Adjusts the Total Revenue for the forecast
Creates the next forecast in the same forecast series
Navigates to Forecast, and selects the Summary Tree view

The adjustments made in step 2 will be reflected in the Last Forecast Adjustment, and the Total Revenue amount from the previous forecast will be in the Last Forecast Total Revenue column.