Demand Analysis

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Version 1,  November 2017

This document provides guidance on how asset intensive organisations can understand, analyse and forecast demand in order to support strategic planning activities.

Supply and demand is a concept that has been in existence for many thousands of years in the form of bartering and trading. Demand is defined as what a person (or entity) needs from another person (or entity) to meet one or more objectives. Supply is the other half of the equation; i.e. the act of meeting the demand.

Understanding demand forms an important part of an organisation’s strategic investment planning: without it they cannot effectively plan for their existing portfolio of assets or determine future requirements to expand their portfolio to ensure that changing demand is met.

Once the existing and forecasted demands are fully understood, they form key inputs to the asset management process to determine the adequacy of organisation’s capabilities to meet the given demand.