Decision Systems & Forecasting

Strengthen planning and execution with predictive models and AI that reduce uncertainty and improve outcomes. We embed intelligence directly into strategic and operational decisions with responsible AI at the core.

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The Challenge: Deciding in Uncertainty

Most organizations make important decisions based on incomplete information, intuition, and historical patterns that may no longer apply. Strategic planning is disconnected from real-time reality, forecasts are unreliable or nonexistent, and by the time problems are visible through lagging indicators, options for response are limited.

Without systematic decision intelligence, organizations face:

  • Strategic decisions made without predictive insight into likely outcomes
  • Unreliable forecasts undermining confidence in planning and resource allocation
  • Reactive responses to problems that were predictable with better intelligence
  • Inconsistent decision quality across the organization due to varying access to data
  • Inability to simulate scenarios before committing significant resources
  • Lost opportunities and inefficient resource allocation due to poor predictions
  • Planning cycles that take weeks because forecasting is manual and time-consuming

Organizations that make better predictions make better decisions—and better decisions compound into sustained competitive advantage, operational efficiency, and strategic agility.

Our Approach to Decision Systems & Forecasting

We build decision systems that embed predictive intelligence where it matters most. Rather than producing reports that require manual interpretation, we design systems that surface the right insights at decision points—helping leaders understand not just what's happening, but what's likely to happen and what actions will produce the best outcomes:

1.Which high-impact decisions currently rely on intuition rather than predictive intelligence?
2.Where would better forecasting change how you allocate resources or plan strategy?
3.What scenarios should leadership be able to test before making major commitments?
4.How can AI improve decision quality while maintaining human judgment and oversight?
5.Which predictive models require explainability and transparency for stakeholder trust?
6.How do we embed intelligence directly into decision workflows rather than separate analysis?

Our implementations combine statistical forecasting for transparent, explainable predictions, machine learning for complex patterns and high accuracy, scenario modeling for strategic planning, and decision frameworks for systematic improvement. We start with high-impact decisions where better predictions create clear value, then expand to broader decision categories as capability matures.

Every model includes responsible AI practices: explainability showing key drivers, bias detection ensuring fairness, human oversight for high-stakes decisions, and continuous monitoring maintaining accuracy. We build decision intelligence that's not just powerful, but trustworthy and ethical.

What's Included in Decision Systems Services

Decision Mapping & Impact Analysis

Systematic identification and evaluation of key decisions across your organization—strategic, operational, and tactical. We map decision frequency, impact, current quality, data availability, and improvement potential to prioritize where predictive intelligence adds most value. Includes stakeholder interviews, decision process analysis, and opportunity assessment with ROI estimates for each high-value decision category.

Predictive Model Development & Deployment

Custom forecasting models for demand, revenue, churn, resource needs, operational performance, and other critical variables. We use appropriate techniques for each context—from statistical methods (ARIMA, exponential smoothing) to machine learning (gradient boosting, neural networks) to AI agents for complex scenarios. Focus on models that are accurate, explainable, actionable, and continuously improving through feedback loops.

Scenario Analysis & Simulation Capabilities

Tools for testing strategic options before implementation. We build simulation capabilities letting leaders explore 'what if' scenarios, understand tradeoffs, stress-test plans against different futures, and quantify risks and opportunities. Includes interactive dashboards for scenario exploration, sensitivity analysis showing key drivers, and decision trees mapping consequences of different paths.

Decision Support System Integration

Embedding predictions and recommendations directly into decision workflows and existing tools. Rather than separate analysis requiring manual interpretation, intelligence appears contextually when decisions are being made—with clear guidance on implications, recommended actions, confidence levels, and supporting data. Designed for seamless integration with how teams already work, minimizing disruption while maximizing impact.

Model Monitoring & Continuous Improvement

Systematic tracking of model performance, prediction accuracy, and business impact over time. We implement automated monitoring detecting when models degrade, alerting teams to recalibration needs, and measuring actual outcomes versus predictions. Includes feedback loops for continuous learning, A/B testing of model improvements, and regular accuracy audits ensuring sustained value.

Responsible AI & Explainability Framework

Ethical AI implementation ensuring predictions are trustworthy, explainable, and fair. Every model we build includes: transparency about how predictions are made, explainability tools showing key drivers and confidence levels, bias detection and mitigation across demographic groups, human oversight for high-stakes decisions, and audit trails for compliance. We help you build trust in AI-powered decisions through demonstrable responsible AI practices, enabling adoption while managing risks.

Who Benefits from Decision Systems Services

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Manufacturing Companies

You're forecasting demand for production planning, predicting maintenance needs to avoid downtime, or optimizing inventory across complex supply chains. Our clients include manufacturers with $100M-$1B revenue who need better predictions for capacity planning, material procurement, and production scheduling. We help you implement AI-powered forecasting that reduces stockouts and excess inventory while maintaining explainability for planners and operators.

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Healthcare Organizations

You're forecasting patient volumes for staffing, predicting readmission risk for care coordination, or planning capacity for seasonal demand variations. We help healthcare organizations implement clinical decision support systems with explainable AI, HIPAA-compliant predictive analytics, and bias mitigation ensuring equitable care recommendations across patient populations.

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Financial Services Firms

You're forecasting credit risk, predicting fraud, modeling market scenarios, or optimizing portfolio allocation. We help financial institutions build predictive models that satisfy regulators, maintain complete audit trails, provide explainability for high-stakes decisions, and include bias testing ensuring fair treatment across customer segments.

Organizations with Complex Planning

Your business requires sophisticated forecasting for resource allocation, inventory management, staffing, or financial planning. Current forecasts are unreliable, making planning difficult and costly. You need predictive models that adapt as conditions change and provide confidence intervals rather than single-point estimates.

Leadership Teams Seeking Strategic Advantage

You want to make more confident strategic decisions by better understanding future scenarios and outcomes. You need systematic intelligence rather than intuition-based planning. Scenario analysis capabilities would help you stress-test strategies before committing significant resources.

Companies in Dynamic Markets

Your market changes quickly and historical patterns don't reliably predict the future. Traditional forecasting methods fail during disruptions. You need adaptive models that learn from recent data, detect regime changes, and adjust predictions as market dynamics shift.

Expected Outcomes & ROI

By the end of our engagement, you will have decision intelligence capabilities transforming planning and execution:

Prioritized portfolio of high-impact decisions with predictive model roadmap
3-5 production forecasting models delivering measurable accuracy improvements
Scenario analysis capabilities for stress-testing strategic decisions
Decision support systems embedded in existing workflows and tools
Model monitoring dashboards tracking accuracy and business impact
Reduced planning cycle time through automated forecasting
Framework for identifying and implementing additional predictive use cases
Internal capability to maintain, improve, and extend decision systems

Typical Results Within 8-14 Months

25-40%
Improvement in forecast accuracy
30-50%
Reduction in planning cycle time
20-35%
Better resource utilization through predictive allocation
7-12x
ROI on forecasting investment within 12-18 months

Decision Intelligence in Action: Supply Chain Forecasting Transformation

The Challenge

A $1.2B industrial distributor with 50,000+ SKUs across 12 distribution centers was struggling with inventory management. Demand forecasting relied on spreadsheet models using 3-month moving averages, resulting in 38% forecast error. This created $45M in excess slow-moving inventory while fast-moving items frequently stocked out, frustrating customers.

Procurement decisions were made reactively based on current inventory levels rather than predicted demand. Supply planning took 2 weeks each month, leaving little time for strategic initiatives. Leadership had no visibility into future inventory positions or ability to simulate "what if" scenarios for promotions, pricing changes, or market disruptions.

Our Approach

We conducted a 3-week decision mapping and data assessment, analyzing 24 months of sales history, inventory transactions, customer orders, and market data. Our analysis revealed:

  • Demand patterns varied dramatically by customer segment, seasonality, and product category
  • Simple moving averages couldn't capture complex patterns like promotional lift or seasonal trends
  • Forecast accuracy varied from 20% to 80% across SKUs, but planners treated all forecasts equally
  • No systematic process for new product forecasting or discontinuation planning
  • Supply lead times varied significantly, requiring different forecasting horizons by supplier

We designed and implemented an AI-powered forecasting system:

Segmented Forecasting Models: Different models for different SKU types: statistical methods (ARIMA) for stable products, machine learning (gradient boosting) for complex patterns with many variables, and similarity-based methods for new products. Each model optimized for its specific context.
Explainable AI & Confidence Scores: Every forecast included confidence intervals, key drivers (seasonality, trends, promotions), and alerts for unusual patterns. Planners could see why forecasts changed and override when needed with documented rationale.
Integrated Decision Support: Forecasts embedded directly into procurement workflow, scenario planning tools for testing promotion impacts, and automated alerts for predicted stockouts or excess inventory situations requiring intervention.

Results

Within 14 months of implementation:

  • $28M working capital improvement through 35% reduction in excess inventory and better demand prediction
  • Forecast accuracy improved from 62% to 84% measured by MAPE across all SKUs, with even better accuracy (92%) for high-volume products
  • 65% reduction in stockouts through better demand prediction and proactive procurement
  • Planning cycle time reduced by 70% (2 weeks to 2 days) as forecasts updated automatically
  • $4.2M customer satisfaction improvement through 92% reduction in backorders and improved fill rates
  • 11.3x ROI on forecasting system investment within 18 months
  • Scenario planning capability enabling leadership to simulate promotion impacts, supplier changes, and demand shocks before committing resources
  • Supply planning team now spending 75% of time on strategic initiatives versus 25% before automation

Most importantly: The organization built lasting forecasting capability with responsible AI practices. Planners trust the models because they're explainable and continuously improving. The company now independently extends forecasting to new areas— including demand sensing with real-time data—with confidence in accuracy, fairness, and ethical AI practices.

Services That Complement Decision Systems

Data & Insight Infrastructure

Accurate forecasting requires high-quality, integrated data. This service builds the infrastructure ensuring your predictive models have reliable inputs, proper governance, and ethical data practices.

Why this matters: Forecasting models are only as good as the data they're trained on. Data infrastructure enables accurate, trustworthy predictions.

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AI Strategy & Organizational Design

Decision systems should align with overall AI strategy and organizational priorities. This service ensures you're building predictive capabilities that support strategic objectives and create compounding value.

Why this matters: Random forecasting initiatives create fragmented value. Strategic decision systems transform organizational capabilities.

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Process Intelligence & Automation

Predictive insights should drive action. This service automates responses to forecasts—adjusting inventory, reallocating resources, triggering workflows—so predictions create operational impact automatically.

Why this matters: Predictions without action are wasted opportunity. Automation turns forecasts into systematic competitive advantage.

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Frequently Asked Questions

How long does it take to build a forecasting model?

Initial models typically take 6-10 weeks from kickoff to production. We start with a 2-week discovery phase understanding the decision context, available data, and success criteria. Model development takes 3-4 weeks including data preparation, feature engineering, algorithm selection, training, and validation. Final 1-2 weeks focus on deployment, integration, and monitoring setup. However, we often deliver early prototypes within 3-4 weeks to demonstrate value and gather feedback. Models improve over time as they learn from new data and we incorporate feedback from users. The output includes working models, accuracy metrics, explainability tools, integration with decision workflows, and documentation enabling your team to maintain and improve models.

What's the difference between statistical forecasting and machine learning?

Statistical forecasting (ARIMA, exponential smoothing, regression) uses mathematical models based on historical patterns, trends, and seasonality. These methods are transparent, explainable, and work well for stable patterns with limited variables. Machine learning (gradient boosting, neural networks, deep learning) can handle complex, non-linear patterns with many interacting variables. ML excels when relationships are complex, data is abundant, and accuracy is paramount. We choose techniques based on your specific context: statistical methods for transparency and simplicity, ML for complex patterns and high accuracy, hybrid approaches combining both, and ensemble methods leveraging multiple techniques. The best approach depends on data availability, pattern complexity, explainability requirements, and accuracy needs.

How accurate will the forecasts be?

Accuracy depends on data quality, pattern stability, and forecast horizon. Typical improvements: 25-40% better than current methods, with confidence intervals showing prediction uncertainty, continuous improvement as models learn from new data, and early detection when accuracy degrades signaling model recalibration. We establish baseline accuracy from current methods, set realistic accuracy targets based on data and use case, measure performance using appropriate metrics (MAPE, RMSE, accuracy by segment), track actual outcomes versus predictions, and provide confidence intervals showing prediction uncertainty. Perfect forecasts are impossible, but systematic improvements in accuracy drive significant business value through better resource allocation, reduced waste, and more confident decision-making.

Can forecasting models explain their predictions?

Yes—explainability is critical for adoption and trust. We build models with: feature importance showing which factors drive predictions, SHAP values explaining individual predictions, sensitivity analysis showing how changes in inputs affect outputs, confidence scores indicating prediction certainty, and visual explanations helping non-technical stakeholders understand models. For high-stakes decisions (credit approvals, medical diagnoses, hiring), we prioritize interpretable models (linear regression, decision trees) or add explainability layers to complex models. Transparency builds trust, enables debugging when predictions seem wrong, satisfies regulatory requirements in regulated industries, and helps users improve their own decision-making by understanding key drivers.

How do you prevent bias in predictive models?

We implement systematic bias detection and mitigation: data audits identifying historical biases in training data, fairness metrics measuring outcomes across demographic groups, bias mitigation techniques adjusting models for equitable predictions, ongoing monitoring detecting bias emergence over time, and human oversight for high-stakes decisions. We test models across sensitive attributes (race, gender, age) ensuring predictions are fair, document potential bias sources and mitigation approaches, establish acceptable fairness thresholds with stakeholders, and implement governance preventing biased models from reaching production. Responsible AI isn't optional—it's built into our development process, ensuring models are not just accurate but also ethical and equitable.

What happens when forecasts are wrong?

All forecasts are wrong to some degree—the goal is useful, not perfect. We build systems that: provide confidence intervals showing prediction uncertainty, monitor actual outcomes versus predictions to track accuracy, alert teams when predictions deviate significantly from actuals, enable rapid model recalibration when accuracy degrades, and maintain fallback procedures for edge cases where predictions aren't reliable. We also implement feedback loops: users can provide input when predictions seem off, actual outcomes train models to improve over time, and root cause analysis identifies why forecasts missed. The best forecasting systems treat prediction errors as learning opportunities, continuously improving accuracy while maintaining transparency about uncertainty.

How do forecasting models handle unexpected events or disruptions?

Models trained on historical data struggle with unprecedented events (pandemics, supply chain disruptions, market crashes). We address this through: ensemble methods combining multiple models with different assumptions, regime detection algorithms identifying when patterns shift, rapid retraining on recent data when disruptions occur, scenario analysis showing outcomes under different assumptions, and human oversight for strategic decisions during uncertainty. We also build adaptive models that: weight recent data more heavily than distant history, detect anomalies and flag unusual patterns, adjust predictions based on leading indicators, and incorporate external signals (economic indicators, market trends, competitor activity). The goal is resilience—models that adapt to changing conditions while maintaining transparency about increased uncertainty.

Ready to Improve Your Decision Intelligence?

Schedule a consultation to identify where predictive intelligence can transform your strategic and operational decisions with ethical AI.

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