According to a survey from Fortune Knowledge Group, mentioned by The Telegraph, “62% of executives feel it’s necessary to rely on gut feelings to make decisions”.
We all know that data driven decisions increase our chances of nailing better results, but the temptation to rely on instincts still takes in, the question is why?
1 – Information multiplying by the minute
In the Information Era, data is being produced by the thousands without your acknowledge.
On a study about decision making, Andrew McAfee and Erik Brynjolfsson wrote in the Harvard Business Review that “about 2.5 exabytes of data are created each day, and that number is doubling every 40 months or so.”. That was in 2012, now we can safely say that we are creating more than 5 exabytes per day.
With so much data it’s easy to feel overwhelmed and end up relying on intuition.
2- Multiple Sources of information
Besides having huge amounts of information, you also have to deal with the diversity of data sources: Accounting, CRM, ERP’s, Social Media analytics, etc.
By checking different data sources reports separately, you focus on one particular side and miss the entire picture. The trick is crossing the information to disclose patterns and uncover trends. However, this is a time-consuming task. Time is something that may not have and again you end up relying on instincts.
3 – Reports generated by someone else
Compiling all the information, from all the sources in a way that it’s readable and offers insights, takes time and a particular set of skills, so you rely on your IT/Data Analysts team to do the reports for you periodically.
Although it saves you time, sometimes you need just a small change, or another metric to get the answers you were looking for your decision.
Instead of going through the report generation flow again, you are tempted to take short cut.
4 – Time pressure
In Today’s business world, Time is a big issue. There are moments when a decision has to be made and you simply can’t give yourself the luxury of asking your team to build you a report.
In fact, one-third of all products are delivered late or incomplete due to an inability or delay in decision-making, according to a study from Forrester and Jama Software.
A wrong decision is better than none, so when the pressure heats up, you rely on your guts to keep the things flowing.
5 – No update on the go
While travelling for a business meeting, preparing a presentation on the go or having dinner with an investor, fresh data is always welcome.
If you don’t have information available while out of the office, you will end up going with your old friend intuition.
Check the “8 steps to become a data driven company” infographic and keep your decisions sharp.
Also keep in mind that data driven decisions are based on the information your company collects and on the reports provided by your Business Intelligence team. The way you plan and deliver BI within your organization has never been more important. Keeping access to data on the hands of a few trained users may slow down the decision process.
Natural Language Business Intelligence software gives you the power of accessing your information faster and easier.