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How big data impacts managerial decision-making

New Zealand’s Massey University recently conducted a study that aims to examine the impact of data analytics on managerial decision-making.

According to a recent press release, the University’s School of Management surveyed 116 managers from predominantly large and medium-sized New Zealand businesses.

Findings of the study

They discovered that many top executives are failing to capitalise on the benefits of big data. Instead, they prefer to rely on their intuition.

While there is growing awareness of big data, most managers are cautious about using analytics for making decisions due to concerns about data reliability

According to Dr Taskin, one of the researchers, nearly two-thirds of the managers they interviewed said that they had no confidence or trust in big data.

The managers prefer to rely instead on their intuition and experience when making decisions.

In addition, 25% of the participants have confessed that they had only a modest knowledge of what big data is, or what it can do.

Moreover, the study had learned that the responders who favoured analytics over intuition were more often mid-level managers, who were not in a position to use big data insights for strategic company decisions.

Their research revealed that top executives are generally not as competent as they could be in using analytic tools and techniques.

It seems that top executives rely on managers within the organisation to generate the big data insights.

After which, the insights would serve as a confirmation of their own intuition. If the insights conflict with their gut feeling, then the insights end up being ignored.

Big Data’s role in decision-making

The researcher clarified that this is not to say using intuition is wrong. Data analytics should complement, not replace, intuition.

However, in order to make wise decisions, top level executives need to be able to judge the relevance, value and ethical implications of big data insights.

There seems to be conflicting notions of the value of big data between top-level and mid-level managers, according to the study.

On one hand, mid-level managers tended to seek insights to improve business processes, while top-level executives, on the other hand, sought insights to improve the company’s bottom line.

Developing the technical understanding of analytics within the top tiers of management will guarantee that organisations receive the most value from the data they collect.

Simply collecting data without the skills to analyse it is costly, and analysis without direction can be deadly.

On a positive note, it is clear that once a manager experiences good outcomes with big data, it builds confidence in applying analytics tools more regularly.

Further research

Further research is being undertaken by the researcher in order to better understand the impact of intuition and data analytics on decision-making among senior managers.

Hopefully, further investigation will allow them to identify the factors inhibiting the effective use of big data and how these might be remedied.

PARTNER

Qlik’s vision is a data-literate world, where everyone can use data and analytics to improve decision-making and solve their most challenging problems. A private company, Qlik offers real-time data integration and analytics solutions, powered by Qlik Cloud, to close the gaps between data, insights and action. By transforming data into Active Intelligence, businesses can drive better decisions, improve revenue and profitability, and optimize customer relationships. Qlik serves more than 38,000 active customers in over 100 countries.

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CTC Global Singapore, a premier end-to-end IT solutions provider, is a fully owned subsidiary of ITOCHU Techno-Solutions Corporation (CTC) and ITOCHU Corporation.

Since 1972, CTC has established itself as one of the country’s top IT solutions providers. With 50 years of experience, headed by an experienced management team and staffed by over 200 qualified IT professionals, we support organizations with integrated IT solutions expertise in Autonomous IT, Cyber Security, Digital Transformation, Enterprise Cloud Infrastructure, Workplace Modernization and Professional Services.

Well-known for our strengths in system integration and consultation, CTC Global proves to be the preferred IT outsourcing destination for organizations all over Singapore today.

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Planview has one mission: to build the future of connected work. Our solutions enable organizations to connect the business from ideas to impact, empowering companies to accelerate the achievement of what matters most. Planview’s full spectrum of Portfolio Management and Work Management solutions creates an organizational focus on the strategic outcomes that matter and empowers teams to deliver their best work, no matter how they work. The comprehensive Planview platform and enterprise success model enables customers to deliver innovative, competitive products, services, and customer experiences. Headquartered in Austin, Texas, with locations around the world, Planview has more than 1,300 employees supporting 4,500 customers and 2.6 million users worldwide. For more information, visit www.planview.com.

SUPPORTING ORGANISATION

SIRIM is a premier industrial research and technology organisation in Malaysia, wholly-owned by the Minister​ of Finance Incorporated. With over forty years of experience and expertise, SIRIM is mandated as the machinery for research and technology development, and the national champion of quality. SIRIM has always played a major role in the development of the country’s private sector. By tapping into our expertise and knowledge base, we focus on developing new technologies and improvements in the manufacturing, technology and services sectors. We nurture Small Medium Enterprises (SME) growth with solutions for technology penetration and upgrading, making it an ideal technology partner for SMEs.

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HashiCorp provides infrastructure automation software for multi-cloud environments, enabling enterprises to unlock a common cloud operating model to provision, secure, connect, and run any application on any infrastructure. HashiCorp tools allow organizations to deliver applications faster by helping enterprises transition from manual processes and ITIL practices to self-service automation and DevOps practices. 

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IBM is a leading global hybrid cloud and AI, and business services provider. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Nearly 3,000 government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM’s hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM’s breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and business services deliver open and flexible options to our clients. All of this is backed by IBM’s legendary commitment to trust, transparency, responsibility, inclusivity and service.

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