Why analytics work and improve decisions?
Analytics improve decisions because they improve the strategies companies use to make them.
Most companies develop and evolve their decision making strategies based on expert judgment and testing over time. But conditions are changing so fast that it’s fair to ask the question: how often does any company actually employ its best strategy? By the time you figure out the best approach, the market is moving on. Decision analytics solve this problem by examining a vast number of strategic possibilities very quickly, enabling you to design and execute the best strategy sooner.
Another way analytics help is by simplifying an enormous task. Today effective strategies must take into account complex interrelationships between segments, variables, objectives, constraints and uncertainties. The human brain (generally capable of handling a few pieces of information at a time) could use some help.
Decision analytics mean human beings don’t have to try to act like computers. Experts apply their judgment to a strategy that already takes into account all of the data and complexity, a strategy empirically determined to be the best possible. Strategy Science then provides the means for them to inject their own business expertise into the empirically based decision framework in a very precise and controlled way.