Strategic decisions still taken based on 'gut feel'
A new research study conducted by B. Week Research Services and B. Objects shows that more than half of the critical B. decisions made in organizations are based on 'gut feel' and experience, rather than sound and verifiable information. The study, titled “The Fact Gap: The Disconnect Between Data and Decisions” of 675 executives assesses the state of information access and decision making within organizations throughout the United States and Europe.
The majority of survey participants - 77 percent - indicated that they were aware of bad B. decisions made within their organization because of insufficient information. In addition, nearly all recognize that inefficient information access significantly impacts the overall productivity of their organization. The survey also shows that businesses are buried by a glut of incompatible applications and databases, and organizations are struggling to make the various systems work together.
More Key findings from the research include:
- Two-thirds of executives identified that more than half of their important B. decisions are based on 'gut feel' and experience, rather than on sound and verifiable information;
- 77 percent of respondents are aware of bad decisions that managers have made within their organizations because they did not have access to accurate information;
- A chasm exists between low-level tactical decisions and high-value decision making, with a majority of time spent on routine, day-to-day tactical decisions, rather than on strategic decisions with the greatest impact on B. success;
- There are more critical B. decisions that need to be made compared to two years ago, and it is becoming more challenging to make important B. decisions
Data retrieval is not just an annoyance, but has a material impact on overall productivity of the B.