🤐 there is N🚫THING intelligent about Business Intelligence or BI. At best, #businessintelligence #bi is a good tool for building reports and dashboards, and at worst is to use it for decision-making!
💣There is a big distinction between: “data for decision” vs “data by decision”
💢data FOR decision: This is a data-driven approach in which data is used for decision-making, as advertised. So what is the problem?
The problem is that humans have a defect called “conformation bias.” We can find faces in a toast and dragons in the clouds. These examples prove that we humans are not to be trusted with data; we can find anything in the data. In the data-driven approach, we mostly use data to justify the already-made decisions — if we use the data at all in the first place:
⚠️On average, between 60% and 73% of all data within an enterprise goes unused for analytics. [Forrester]
There are many examples of hundreds of dashboards and reports #datadriven created that have not changed any organization's behavior in how they make decisions and had literally ZERO influence in the operation of the business.
✨data BY decision: This is a decision-centric approach, where a decision is modeled and will consume data for execution. How is this different?
The difference is that business decisions are explicitly defined and modeled upfront in this approach.
Decisions DO NOT rely on the interpretation of anyone from a report or dashboard, nor are they based on any data exploration and trying to fit the data into a specific idea in our head.
Below👇 is how the Decision-Centric Approach® works at a high level:
1️⃣ Create a holistic business decision model for the business objectives
2️⃣ Decompose the holistic model into smaller and more understandable decision units
3️⃣ Establish the relationships and dependencies between the units
4️⃣ Define metrics of the decision units
With these four simple steps, you will clearly define how a business decision is made. To execute a decision model, you need to apply different techniques that are suitable for each unit based on the nature of the problem encapsulated in that unit #rules #data #machinelearning #optimization.
🚀The four steps of the #decisioncentric approach make all the difference in the world:
– It clearly establishes how decisions are made
– It enables the use of composite #ai techniques for decision-making
– It avoids any bias and attempts to find what you need to confirm your hypothesis with false pretension
– It makes decision-making transparent
Ultimately, it makes your data valuable! It would otherwise not be worth anything – not as at least as valuable as you thought and business invested in.
#decisionintelligence
Posted here.
Published May 10th, 2024 at 07:30 am
