Driver-based model- trends factors affecting its adoption

Kunnathuvalappil Hariharan, Naveen (2017): Driver-based model- trends factors affecting its adoption. Published in: Journal of Emerging Technologies and Innovative Research (JETIR) , Vol. 4, No. 10 (October 2017): pp. 865-869.

Abstract

Despite the fact that the notion of driver-based modeling is not new, many businesses have implemented it to support detailed business unit planning. This study highlights a few dimensions about the driver-based planning models. First, it highlights the recent trend and practices of adoption of driver-based models. Second, it discusses the fundamental reasons for adopting the driver-based planning model. As the examples of this trend, we investigated the uses of these models in two different sectors, namely, chain restaurant sector, and Fast-Moving Consumer Goods (FMCG) sector. The findings show that people are attempting to forecast more regularly, which is why adoption and curiosity are so popular. Another reason driver-based models are becoming more popular is the increased availability and visibility of data that ERPs and other technologies have enabled. Another reason of employing driver-based modeling is that the necessary technology is now available and affordable.

• Item Type: MPRA Paper
• Language: English
• Keywords: chain restaurant sector; Driver-based model; FMCG
• Subjects: G - Financial Economics > G3 - Corporate Finance and Governance > G30 - General; G - Financial Economics > G3 - Corporate Finance and Governance > G31 - Capital Budgeting ; Fixed Investment and Inventory Studies ; Capacity

References

Barrett, R. 2007. “Planning and Budgeting for the Agile Enterprise: A Driver-Based Budgeting Toolkit.”

Brandenburg, Marcus. 2012. Quantitative Models for Value-Based Supply Chain Management. Springer Science & Business Media.

Cahn, Arno. 2003. 5th World Conference on Detergents: Reinventing the Industry : Opportunities and Challenges. The American Oil Chemists Society.

Chapman, Christopher S., Anthony G. Hopwood, and Michael D. Shields. 2009. Handbooks of Management Accounting Research 3-Volume Set. Elsevier.

Liu, Yun, Zhi Xiang Hou, Dan Yu, and Yi Hu Wu. 2011. “Research on Forecasting the State of Driver Based on Chaos Theory.” Applied Mechanics and Materials 48-49 (February): 954–59.

Nikkola, Janne. 2011. “Profit Driver Based Forecasting, Case Rautaruukki Oyj.” aaltodoc.aalto.fi. https://aaltodoc.aalto.fi/handle/123456789/681.