Rapid social, economic and political changes are leading
organizations to shift their thinking from reactive to proactive in
order to detect opportunities and threats that could affect their
business [6]. Eliminating or mitigating an anticipated problem, or
capitalizing on a forecast opportunity, can substantially improve
our quality of life, and prevent environmental and economic
damage. Changing traffic light policies and speed limits to avoid
traffic congestions, for example, will reduce carbon emissions,
optimize public transportation and increase the quality of life and
productivity of commuters. Similarly, adding credit cards to watch
lists as a result of forecasting fraud will reduce the cost inflicted
by fraudulent activities on payment processing companies and
merchants, and consequently lower credit card rates.
In energy management, there is a need for real-time optimization
of power consumption in individual houses and buildings
equipped with renewable energy sources. This requirement may
be addressed by forecasting energy consumption and production,
say for the next 30 minutes, and making decisions about load
adjustments and/or rescheduling. In post-earthquake disaster
management, loss forecasts can be vital in planning the actions to
be taken immediately after an earthquake occurs.