Combined forecast process: Combining scenario analysis with the technological substitution model

Forecasts can be improved by combining separate forecasts obtained by different methods. The complementary nature of the scenario analysis and technological substitution models means that combining the two can obtain improved forecasts. The former has the strength of dealing with the uncertain future, while the later offers data-based forecasts of quantifiable parameters. This study thus proposes a process for combining the scenario analysis with the technological substitution model for discussing new generation technological developments. The proposed process not only has the strengths of scenario analysis, but also contains features that scenario analysis lacks, including predicting annual developments for future years, considering old technology development, and forecasting substitution of old technologies. This study uses the forecast of the market share of Fiber to the x in Taiwan over the next ten years as an example illustrating the proposed combined forecast process.