Aug 10, 201710:56 AMOpen Mic
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3 ways to generate profit with the data you already have
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Decision theory is applied to help decision-makers select the best choice to achieve their objectives. Structuring the decision criteria into a decision matrix laying out anticipated acts, events, outcomes, and payoffs helps managers see more clearly the full scope of their proposed actions and make more objective choices, guarding against hidden or implicit cognitive biases. Cognitive biases arise where an individual holds a view of a situation that is based on prior subjective experiences but may not be completely consistent with current reality. Confirmation bias, for example, occurs when the inclination is to look for information and analytics that support pre-existing beliefs or goals.
If you focus your analytics on your decision, you are already ahead of most analytical practitioners. Creating alignment from your decisions to the business drivers that achieve your corporate objectives makes your analytics actionable and relevant. Assessing the economic value of your decision choices and employing decision theory will improve the value of your decisions. These three practices will drive up the value of your analytics and enable you to monetize your data.
Andrew Roman Wells is the CEO of Aspirent, a management-consulting firm focused on analytics. Kathy Williams Chiang is VP, Business Insights, at Wunderman Data Management. They are the co-authors of Monetizing Your Data: A Guide to Turning Data into Profit-Driving Strategies and Solutions. For more information, please visit www.monetizingyourdata.com.
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