Predictive Decision Making

Definition

Predictive decision making uses forecasts to guide actions before outcomes are visible. It combines historical patterns with current signals to estimate what is likely next. It is most useful when early action changes results.

Business Context

Examples include predicting churn and intervening, forecasting demand and stocking correctly, or predicting payment delays and adjusting credit control. Prediction becomes decision making when it is tied to a clear action rule.

Why it Matters

It enables earlier interventions and reduces reactive firefighting.