Indicio vs planning tools

While both planning and forecasting software are valuable, planning tools typically only place emphasis on optimizing certain aspects of the business, such as inventory levels, capacity. However, they do not take market- and macroeconomic factors into consideration.

We break down what you should consider.

Email me the comparison pdf
Email me the comparison pdf

Deciding between a forecasting and planning tool? Here's some factors to consider.

How well-equipped is the tool in helping you anticipate market trend shifts? 

Can it provide a consolidated view of both internal data (like historical demand and sales figures) and external data (market trends, macroeconomic factors)? Economic fluctuations, political changes, technological advancements, and other external factors can significantly impact forecasts.

In certain industries, regulatory changes can significantly impact market dynamics. You want to be able to both preempt it and hedge for it. Being able to conduct a scenario analysis arms you to understand and prepare for potential outcomes.

How close do the forecasted results stack up to the actual outcomes? 

Achieving a 100% forecast accuracy is a pipe dream, but working with as small of a confidence interval as possible is the next best thing. Does the forecasting tool deliver this consistently? This can be undoubtedly challenging to ascertain without usage of the tool.

By conducting a proof of concept, it can provide you with a clearer scope of how it performs on exactly your data. Access to past forecasts performance will also be useful towards showing you how its predictive capacities have historically performed.

What are the forecasting methodologies used and how effective are they in providing accurate predictions?

Does the software employ correlation to identify your relevant market drivers?

‍The fallacy with correlation is well-known and it essentially robs you of identifying new drivers that could be more effective at predicting your sales. Only using univariate models to forecast? All, if not most, forecasting models built into planning tools (even the newest AI-based planning solutions) are solely based on or restricted to using straightforward univariate models. 

While these univariate methods are valuable, they don't account for external factors that might influence the variable being forecasted. In modern business environments, relying solely on univariate methods might not be enough for comprehensive forecasting, especially when external factors play a significant role. It's often beneficial to combine these methods with multivariate approaches or to use them in specific contexts where they are most appropriate.

(Placeholder quote) We've tried planning tools, but hated it.

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Customer Name

Co-Founder and CEO of Company

What's the difference?

Indicio

Traditional planning software

AI planning software

Scope of information that can be incorporated
Capable of incorporating a wide breadth of industry-specific and macroeconomic indicators.
Only incorporates general indicators like weather, seasonal patterns.
Only incorporates general indicators like weather, seasonal patterns.
Forecasting horizon
Can handle both short- and long-term forecasting horizons (Up to 10 years)
Only possible to forecast short-term forecasting horizons.
Only possible to forecast short-term forecasting horizons.
Scope of forecast models used
Univariate and multivariate models, such as Lasso, LSTM and MIDAS. They are also capable of comprehending complex interdependencies.
Solely based on or restricted to using univariate models.
They commonly use "black-box machine-learning models. This typically makes it hard to provide the reasoning behind the forecast results.
Identification of leading indicators accurately
Indicio is based on the latest forecasting research, where the best practice is to select the variables based on Bayesian variable selection or a search algorithm like stepwise search.

These approaches test which combination of variables gives the highest forecasting accuracy for a given model.
A model using the coefficient search method is typically used.

The limitation associated with this is that if you have a large number of leading indicators, this model will not perform as well and accurately.
A model using the coefficient search method is typically used.

The limitation associated with this is that if you have a large number of leading indicators, this model will not perform as well and accurately.
Access to market & economic data
Integrated with multiple, leading macroeconomic data sources like FRED, Refinitiv and Oxford Economics
Yes, some do.
Yes, some specific data sources, but the sources are not as dynamic.
Ease of use
User-friendly, code-free set-up. 
Total onboarding time is less than an hour.
Onboarding time is high as it requires more time to understand the dependencies between each module in the tool.

(Further down the line, there is also a hidden cost associated with having to purchase more modules to maximize usage.
User-friendly.
Capacity to forecast market growth
Yes.
Mainly focused on or centered around supply chain management, not so much market growth.
Mainly focused on or centered around supply chain management, not so much market growth.
Scenario analysis
Yes. Indicio also provides scenario simulation.
Yes, but it isn't as sophisticated, and thereby runs the risk of being less accurate.
Yes, but it isn't as sophisticated, and thereby runs the risk of being less accurate.
Feedback mechanism
Easily set up and track deviations between the projected forecast projections and specific manual inputs from stakeholders.

Option available to categorize the type of input (sales, expected demand) to provide clarity on the source of information.
‍
Beneficial when your forecast is dependent on provided figures from different departments.
Able to track manual inputs.

However, they only provide the option to leave a comment on the input, not categorize it.
Able to track manual inputs.

However, they only provide the option to leave a comment on the input, not categorize it.
Integrations
Indicio guarantees to integrate all of your current data sources.
Often requires external consultants to get integrations set up.
Often requires external consultants to get integrations set up.

Build a customized
forecasting process that fits

your business needs

40-60%

Average
forecast accuracy improvement

Detect
market trend shifts

in advance.

Identify your leading indicators

Regardless of where you are in the business cycle.

Want to see how you can gain a strong forecast process?

Book a forecasting session

Identify your relevant leading indicators and anticipate shifts in your market months ahead. Through improved forecasting accuracy.

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We are an automated forecasting software that bridges the latest statistical models from academia with the specific leading indicators in an organization's market environment. Helping your organization achieve the highest forecast accuracy.

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