We all make decisions based on the information, or data, that we have and our experience. The way that people make decisions varies however form person to person, or company to company, while taking the situation into consideration.
Finding the right decision making process that takes all knowledge – from data to experience into consideration can be tricky. No one wants to make the mistake of blindly following data without applying it to the situation, nor do you want to rely purely on past experiences without taking new information or trends into consideration.
People often tend to over-value their own skill and knowledge as well as their ability to make decisions. However the way we see things, based on our own experiences, is bias towards our own preferences and point of view. The biggest mistake one can make is to believe that we can do everything, or that we know everything.
This being said, computer-generated data is not golden either, as it lacks human thought. Blindly following data, against your better judgement, is the thing that causes people to follow their GPS far off track. Although computers and their abilities are constantly improving, no data set is perfect. This is why using data to make decisions requires a data-literate person to interpret the information. It is important to have someone, or hire a company, that can collect and analyse the data for you if you do not have the time or skills to do so.
Data-informed decision making is a process whereby you use data to inform your decision making process. However, in order to do this, one needs to understand the data, or get someone to interpret the data for them, before combining it with their own experiences. In the end, you make the final call – not a computer or data. The benefit is that your decision will be based on facts, figures, and trends that will help you to make the right decision.
