Have you ever asked yourself why Decision Intelligence is needed?

✨ Have you ever asked yourself why Decision Intelligence is needed?

Historically, decision-making has been a hot topic in almost all industries e.g. #insurance #banking #government #health #financialservices #logistics. Read more at https://lnkd.in/gfNtAZqn

💢Many disciplines and technologies have tried to address challenges around decision-making in organizations. There are a multitude of challenges that should be addressed when it comes to decision-making from multiple aspects:

🔸Problem with data: despite what you may think, data is not the center of decision-making. In fact, “on average, between 60% and 73% of all data within an enterprise goes unused for analytics.” said Forrester. Data-driven decision-making is to justify the decisions you have already made by #data. Data and analytics leaders should focus on “data by decision”, i.e the decision-centric approach.

🔸Problem with noise: Humans are very bad at making judgments. “When there is a judgment, there is a noise, and more than what we think,” said Daniel Kahneman. When people make a judgment, it should be identical because it is about the same subject, but it varies based on many factors, such as biases, moods, narrow-window thinking, and so on. This variability is the noise that should not exist.

🔸Problem with algorithms and bias: An algorithm-centric approach to building machine learning #ai #ml #llm does not solve any actual business problem. Even many non-generative machine learning models do not see the face of production. Either they solve a wrong problem (Error type 3) or have bias issues because of the data they are trained by—historical data of bad human judgments.

🔸Problem with disjoint and silo technologies: Decision-making in organizations is a multi facade and multidimensional challenge. The silo systems, data, processes, and technologies make the whole aspects of it more complex.

🚀Decision-making should be based on hierarchical and multistep decision models representing holistic views of business decisions. Additionally, the decision model should use a composite AI technique that leverages #rules #machinelearning #optimization #orchstration.

…and the #DecisionIntelligence is born… The evolution of many technologies converges into a unified framework and technology for decision-making.

🤔But we need to make sure we are clear about two questions:
What is a “decision”?
What type of “intelligence” do we need in decision-making?

Posted here.

Published June 10th, 2024 at 07:30 am