Understanding Policy Impacts and Supply Chains for Business Intelligence

Today's world is full of enormously inter-linked countries and even businesses. Therefore, business planning decisions should take into account the linkages between different business segments as well as countries. Government policies also affect businesses not only in the home country but also elsewhere. However, typically business analysts who work on forecasts and planning do not account for changes in terms of policies and supply chains in their countries and elsewhere. 

 

Let's take the example of cotton subsidies in the US. Although this is more debated in the US in the context of the debt ceiling issue than anywhere else, any decision on it has far-reaching implications on textile industries in India and other countries. Similar things may be said of what happens to policies influencing resources in resource-rich countries.

Therefore, we need a simple framework that marries data methods employed in economic policy modeling with day-to-day business intelligence. This framework could employ publicly available rich information on linkages between countries and business segments/sectors to evaluate the market changes that can arise from major global and local policies, such as the GTAP framework. This has immense potential to facilitate a scientific approach to handle future uncertainties involved in the business intelligence.