While statisticians swear by the power of data, some social scientists have also now started questioning the undying love for the same shown by business decision makers. One area where data science fails compellingly is the context which needs to be created, within which the said inputs have to be judged against. The concept of creating a hypothesis around the data warehousing done, is already fraught with irregularities. This creates the effect of business decisions being data- inspired and not driven, as the term is used in common parlance. To use the same, a sort of discipline needs to be built in. This is the reason, that behavioral economists set decision criteria, well before receiving the information. Once this decision criteria is kept open, one is free to receive the data selectively. A number of decision makers often also suffer from what is termed as the IKEA effect. Here, one tends to believe a certain positive business analysis, simply because one has invested time and money on it.

Source:https://hbr.org/2019/06/the-first-thing-great-decision-makers-do?ab=hero-subleft-1&utm_source=twitter&utm_campaign=hbr&utm_medium=social

Uploaded Date:03 July 2019