Developing a Forecasting System - Essay Example

The next step is making a Preliminary Analysis of the forecasting methods and techniques. This involves experimentation and verification.  The next step is Choosing Models, whereby complex mathematical concepts like regressions, exponents, and neural networks are integrated into the forecasting system.  The final is Evaluating and Fine Tuning the system so that they are aligned with the ultimate business goals of the organization.  In the high competition atmosphere of modern businesses, a quality forecasting system can make all the difference between success and failure. Through complex and sophisticated forecasting techniques, businesses can gain key strategic advantages in their operations. 

1. Explain what is meant by the moment of truth in service design. Why is it so important for businesses to understand this concept?

Moments of truth are those brief periods of communication between the customer and a service provider where either a positive or negative response is generated.  For example, in a retail store, all points of contact between the customer and service personnel are considered moments of truth.  These include check-in, inquiries about products, bill settlement, check-out, etc.  Hence, understanding the concept of the moment of truth is essential for good customer service. 

One of how customer goodwill can be generated is by anticipating points of interaction and developing protocols for the service team to follow. By paying attention to service design a business can convert accumulative moments of truth into brand loyalty.  In the service industry, the customer experience is usually not based on tangible factors.  Instead, they are constituted by first impressions, feelings of trust and confidence toward the service provider, etc.  In other words, the customer experience is mostly based on qualitative factors and quantitative aspects.  It is for this fact that a well-thought-out service design becomes imperative.  Successful businesses embed moments of truth into their service design to garner strategic benefits.