Driver-based model- trends factors affecting its adoption

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.