Imagine how easy and efficient it would be to make any decision knowing, in some way, what will happen in the future if we decide to choose a specific option. That is, being able to know which decisions are going to give better results than the rest. With the help of Decision Intelligence, we are getting closer to achieving it. Do you want to know what this concept consists of and how it works? Keep reading!
What Is Decision Intelligence?
Decision Intelligence is the discipline that processes large amounts of data so that a company can make decisions minimizing the chances of error.
To better explain this concept, let’s start by defining what a decision is as such. We could define it as a choice to make about something after analyzing the rest of the possibilities.
Well, when we make a decision both in business and in everyday life, we are generally guided by the current situation and environment. You may also be influenced by our:
- Knowledge of the subject
- Previous experience
- Subjective perception of reality
This is how the human brain processes the combination of external and internal factors when making a decision.
However, an artificial intelligence-based decision-making system processes and analyzes large data sets in real time. But not only that, but it is also capable of making intelligent predictions based on historical data and suggesting the best possible decisions based on the data sets and parameters that we have specified at the beginning.
That being said, there are two main differences between human and AI decision-making. On the one hand, artificial intelligence takes into account all available information, while a human considers limited data. And, on the other hand, artificial intelligence is objective and is not based on emotional factors, the opposite of humans. I encourage you to read more about this blog here: What Is Scalability And How To Implement It In Your Company Or Startup
Why Do You Need To Implement Decision Intelligence In Your Business?
The implementation of Decision Intelligence in a company can bring multiple benefits. For example:
Data-Driven Or Data-Based Decisions
According to a study, although 91% of companies believe that data-driven decision-making can drive business growth, only 57% trust their data. Therefore, to really get a competitive advantage we must correctly analyze the available data and try to make some predictions before choosing the best option.
Artificial intelligence has the ability to find patterns invisible to our eyes. In addition, also possible anomalies that can influence the final result.
There Is Not Always Only One Good Decision
Decision intelligence algorithms are not only powerful but also flexible. This allows them to highlight various outcomes of a given decision when one of the stipulated parameters is changed. This flexibility feature can help the company make the best decision among a large number of options. In addition, you can do it taking into account both the current objectives of the company and its growth strategy.
Much Faster Decisions
According to a report published by McKinsey, only 20% of companies say they are satisfied with their speed when making decisions. In general, most companies admit that they spend a lot of time trying to analyze each option to choose one. And that this, in addition, many times is not even the correct one.
Decision intelligence, being based on artificial intelligence, speeds up this process enormously. This is due to its ability to analyze and process large amounts of data in real time.
Minimize Errors And Absence Of Biases
As we have previously commented, different types of biases can directly impact the results of decisions. Decision intelligence is capable of avoiding all these human biases if it is correctly programmed. In fact, it offers an objective result of the data it has.
Despite all these benefits, intelligent systems still need human verification. Especially in those cases in which the decision taken may generate conflicts of interest and values.
How Does The Decision Intelligence Process Work?
The fundamental foundation of decision intelligence centers on accurate and efficient decision making which, in turn, is based on actionable knowledge of efforts and results.
Organizations are increasingly aware of the need to prepare their processes and infrastructures for the future. Most companies have accelerated their efforts to digitize their operations and procedures in recent years. The goal is to be able to respond quickly to changing markets.
In this sense, decision intelligence offers actionable and competent verdicts that combine data science, social sciences, and management science to carry out important business decisions.
There are five steps in decision intelligence in the context of digital transformation. These are the following:
- Observation: It is possible to collect and collate relevant information through models that collect multiple sources. These include transactional and historical data.
- Research: Decision intelligence refines and analyzes information in order to help build models that interpret the results we seek.
- Models: The results we get allow models to look at different options based on the different capabilities and skill sets out there.
- Contextualization: The complexity of the situation is contemplated and the actions to be executed are evaluated and considered.
- Execution: Finally, a final decision is made and action is taken based on it.
Real Examples Of Decision Intelligence
Now that we know everything about this technology, let’s see some real examples of how it directly impacts business :
As for pricing or pricing strategies, automated systems can adjust prices based on data thresholds. With the high volume of transactions, organizations can apply different decision-making frameworks to test, iterate, and refine decision processes and AI models.
This is especially beneficial for businesses that do a lot of transactions, such as airlines or pharmaceutical companies.
On the other hand, decision intelligence can also be applied during the process of hiring and evaluating employees. Human resources departments can use smart apps to track potential employees through the application, interview, and hiring process. In addition, they can also monitor employee satisfaction to better understand things like retention and predict future hiring needs.
Improve Customer Recommendations
These types of tools have the ability to use analytics to predict what products or services customers will want. But not only that but also aspects like what movie or TV show they will watch next.
They help the end user to make decisions with context. For their part, businesses will benefit from automated tools with human logic that will increase the consumption of their products.
Automated tools can analyze data about leads and help prioritize sales opportunities. With this information, we can use decision intelligence to understand and focus on those business activities that have the most impact. In addition, it also identifies the opportunities that are most likely to close and even updates sales forecasts in real time.
On the other hand, we could also apply it to see which parts of the funnel are most at risk, predict future revenue using historical conversion rates and close times, and get this information to the teams that need it.
Business Benefits Of Decision Intelligence
Below are five key benefits of decision intelligence solutions that organizations can expect.
- Data-Driven Decisions. While 91% of companies believe that data-driven decision-making methods can fuel their business growth, only 57% of them rely on their data. To gain a competitive advantage, you need to properly analyze the available data, make some predictions and choose the best option. AI can take a closer look at the data field and find unseen patterns and possible anomalies that can significantly affect the result.
- Quick decisions. According to the McKinsey survey, only 20% of companies are satisfied with their decision-making speed. Others admit they waste too much time trying to make the right choice, which isn’t always the right one. AI decision-making systems speed up the process as much as possible because they can process huge amounts of data almost instantly.
- Multiple options to solve problems. AI-assisted decision-making algorithms can also be very flexible, highlighting multiple outcomes of a given decision when one of the parameters is changed. This feature can help the company make the best choice from a variety of options considering its current goals and growth strategies.
- Elimination of mistakes and prejudices. There are at least five types of biases that can directly affect the outcomes of business decisions. Decision intelligence makes it possible to avoid them all, as the properly programmed algorithm takes an ultimately objective look at the available data.
But do smart systems always make better decisions than humans? Although they are guided by large input data and are not prone to cognitive biases, they still require human verification, especially in those cases where the decision made may lead to conflicts of interest and values.
The Future Of Decision Intelligence In Companies
In short, decision intelligence is essential for any modern company that wants to function and continue to grow in the digital world. It is an important resource that helps organizations establish protocols for decisions that will have a strong impact in the future. Usually quantifiable.
When businesses incorporate this technology into their digital transformation strategies, they are able to make data-based decisions that impact relevant systems and processes to solve business problems.
We could say that data science or data science is no longer enough. Decision intelligence goes further as it combines analytical and structured behavioral approaches. The lack of foresight and intuition is the main reason for the commercial failures of companies that do not invest in these systems.
In the future, companies will be forced to connect decision-makers with innovative technologies such as artificial intelligence or machine learning. Thanks to this, they will be able to address complex, diverse, and multifaceted problems that could not be achieved without the use of decision intelligence.
Frequently Asked Questions (FAQ)
What Is An Impact On Decision Of Business?
As a manager, it’s important to recognize that your business decisions can have significant interpersonal implications. These decisions can impact your employees’ ability to learn and grow, their work-life balance, productivity, health, and their interactions with customers. It’s essential to consider how your actions as a manager can affect the people around you and strive to make decisions that benefit everyone involved.
What Do You Mean By Decision Intelligence?
Decision intelligence encompasses various decision-making techniques that merge traditional and advanced disciplines. It is a practical domain that involves designing, modeling, aligning, executing, monitoring, and tuning decision models and processes.
Why Is Decision Intelligence Important?
Companies can leverage Decision Intelligence to utilize AI and data in order to swiftly, precisely, and uniformly make decisions that tackle specific business needs and issues.
How Does Decision-Making Benefit A Business?
In the end, dedicating time to assess the consequences of a choice can result in significant time and cost savings in the future by identifying areas that can be improved with ease and effectiveness. This approach enables companies to make informed decisions that will generate favorable results and assist them in attaining their objectives.
The use of business intelligence solutions based on AI is an opportunity for companies to make better and faster decisions in important business processes. In this way, companies can not only reap the ultimate benefits of working in a data-driven way but also consider the widest possible range of relevant information when deciding on the next step.
Infopulse can help you develop sophisticated business intelligence solutions for your company. Contact us to access our in-depth expertise so we can perfectly customize your decision-making platform with long-term forecasts to your current business needs!
Learn More About What Is Decision Intelligence And How Will It Impact Your Business? From businessjohn