Decision Research — Industry Intelligence
SCIO Decision Intelligence Platform
Leaders focus on results. Practitioners focus on processes, data and documents. We’re action-oriented and results-driven. Almost nobody is focused on the main value driver — the important decisions and how they’re made. We know intuitively that decisions are important, but where and how they’re made is elusive. Don’t believe me?
I saw the quote, “The success of an organization is nothing but the sum of all its decisions,” in a LinkedIn post describing outcomes from the Gartner 2023 Data & Analytics Summit. I like that statement a lot.
According to information shared at the summit, 69% of Data & Analytics (D&A) leaders struggle to deliver a measurable return on investment, ROI. That seems astonishing but not surprising.
According to McKinsey & Co., 70% of digital transformations fail to meet stated business goals. For industrial sectors like manufacturing, utilities, energy and mining the reports are worse, the rate can soar to 80%. That doesn’t mean these major projects aren’t providing any value, just that the ROI can and should be questioned as a good business decision.
A colleague recently stated that companies spend twice as much on information technology infrastructure and digital assets as on physical assets. Surely, tens and hundreds of millions of dollars are spent on digital transformations. While the management consultants, systems integrators, and solution providers are cashing in, the asset owners aren’t benefitting nearly enough.
Why? Despite massive investments in technology-led improvement and innovations, organizations have not substantially improved their decision-making capability. Data and analytics are not enough. Organizations need more to help them arrive at better decisions.
According to an article published in the Harvard Business Review, studies show that organizations that apply best-practice decision-making achieve their business goals 90% of the time and exceed them 40% of the time. This contrasts with organizations not applying best practices that achieve their goals only 30% of the time. That performance difference is remarkable. Unfortunately, only 2% or organizations use best-practice decision-making.
How much value is at stake? Massive. The Society of Decision Professionals states that decision effectiveness is >95% correlated with financial results.
Things are starting to change. Gartner predicts that 75% of Global 500 companies will use decision networks as a competitive differentiator. We’re all in the business of delivering value to our stakeholders from our assets. Our stakeholders deserve the higher performance great decision-making can provide.
What are your organization’s decision-making practices? Could they use improvement? SCIO’s Decision Intelligence Framework provides a platform and canvas to model, track and improve organizational decision-making capability.
Book a Decision Intelligence Framework demo with SCIO.
