It's also important to understand that what customers want and need is constantly adapting to larger market forces too. Therefore, forecasting models need access to accurate, up-to-date, broad, and responsive data. If data inputs are outdated, or incorrectly formatted, the ability to successfully create a contingency plan diminishes.
It’s not all doom and gloom though, contingency plans aren’t always necessarily designed to plan for negative events. They can be used to plan for success too! In scenarios that increase product popularity, such as the case of Zoom, a contingency plan for success may have involved dealing with increased revenue and traffic by hiring more staff. Thus, allowing for businesses to fully take advantage of their increased success.
Whilst not everyone may be enthralled with the idea of planning for contingencies, it is a necessary part of business. The importance of having plans and processes in place to deal with unexpected events is not to be underestimated. A strong contingency plan is one designed to protect critical resources, minimise interruption, and provide a clear path forward in new environments. It is also one that is continually updated with innovative ideas and contains elements of flexibility that allow for adaption when required. With the prospect of an increasingly uncertain future, whether or not a firm has planned for unexpected events may well be the defining moment in their ultimate success or failure.