The ability to make high quality decision is central to any organization. The expansion of the volume, variety, and velocity of information make this ability increasingly difficult. With the state of current data explosion, decision-makers have to respond more quickly and with greater precision than ever.
To improve your decision-making process you should be considering the following:
- Do not focus exclusively on historical experience Traditionally, decisions have been made on the basis of anecdotal experience of domain experts. These decisions are subjective and often inconsistent, thereby limiting their value for the organizations.
- Business rule tools become obsolete quickly Having the need to standardize key decisions and make them more consistent and reliable, many organizations have moved toward automated decision-making by using business rules. Although this automation provides a degree of efficiency and objective consistency, and improves the collective quality of decisions, static rules quickly quickly become obsolete in ever-changing situations and conditions, and the limits of this approach become apparent.
- Predict for specific conditions rather than for generalizations: Predictive decision-making, based on analysis of historical patterns and current conditions, is the basis for the highest quality means of making decisions. The reasons are because the models consider all available data, and also continuously adapt to new information, becoming smarter over time. With predictive analytics, the right decision for the given conditions can be made at the point of impact at the time when the decision needs to be made. Decisions are now customized for each unique case, rather than using generalizations for the aggregate.
Predictive Analytics tools can generate extremely useful insights and actionable predictions that will improve the decision-making process by doing it less anecdotical, less obsolete, and more relevant to the problem to solve.