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Driver-based model- trends factors affecting its adoption

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  • Kunnathuvalappil Hariharan, Naveen

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.

Suggested Citation

  • Kunnathuvalappil Hariharan, Naveen, 2017. "Driver-based model- trends factors affecting its adoption," MPRA Paper 109510, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:109510
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    File URL: https://mpra.ub.uni-muenchen.de/109510/1/MPRA_paper_109510.pdf
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    More about this item

    Keywords

    chain restaurant sector; Driver-based model; FMCG;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies

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