Business managers face incredibly complex and difficult decisions in their positions. Managers need to find techniques to make all the decisions they make in better ways. Managers face challenges such as having a too narrow focus, falling into confirmation bias, getting caught in short-term emotion, and being overconfident. These are all common fallacies in decision-making that all people face, not solely business managers. Another problem that managers face is not making decisions based on integrative thinking. They do not consider certain factors that are essential to the decision they are making. Integrative decision-making can improve “critical thinking, creativity, pleasing multiple audiences, and satisfying workers.”
Integrative thinking will widen a manager’s viewpoint. It will allow managers to consider factors that would not have been factored into a traditional decision. Executing integrative thinking can be done by following the “Process of integrative thinking.” Managers will consider salience, causality, sequencing, and resolution when making integrative decisions. “Integrative thinkers understand that they are engaged in a creative process that avoids easy, pat, or formulaic answers.”
Better decision-making can be made by business managers by trying to reverse natural tendencies for bias. “Rational thinking is prone to several biases and problems.” Numerous methods and techniques exist to reduce this natural bias in decision-making, and they should be followed to improve decisions. Some examples of these are to “widen your options, reality-test your assumptions, attain distance before deciding, and prepare to be wrong.”
Technological disruption has been changing business and organizations at a rapid pace. A new technology or process is constantly being invented that changes industries and organizational strategies. The author of The Innovator’s Dilemma and Harvard Business School Professor Clayton Christensen “sees disruptive innovation as a threat to everything from Microsoft to Japan.” I agree that innovation will increasingly disrupt business strategies worldwide, especially caused by technological advancements. For example, Blockbuster’s entire business model became obsolete due to technological disruptive innovation. Netflix and online streaming services put Blockbuster out of business. More and more business models will become obsolete due to innovative technology.
This topic relates to our class project. A difficulty that most teams have been facing is finding a business model that will be effective against competitors. Taking an approach to the class project with disruptive innovation in mind may be able to help the teams form more effective business models that will not be immediately disparaged. I think that the most effective new businesses usually have some sort of disruptive innovation.
How do you think disruptive innovation can apply to our class project?
Harvard Business Review published an article called How to Integrate Data and Analytics into Every Part of Your Organization. To have a successful D&A function, the article states “D&A should be the pulse of the organization, incorporated into all key decisions across sales, marketing, supply chain, customer experience, and other core functions.” This is like the “IT “Is” the Business” approach that we read about in The Built-to-Purpose IT Organization. The “IT “Is” the Business” approach to D&A will be effective only if the entire organization supports the D&A strategy.
I think that building a strategy about how D&A will be used to improve the organization and getting top leadership on board with that strategy is an effective way to implement D&A in an organization. How to Integrate Data and Analytics into Every Part of Your Organization says that “developing a strategy across the entire enterprise that includes a clear understanding of what you hope to accomplish” is the best way to build effective D&A capabilities. Communicating this strategy to top leadership is the best way to get the entire organization on board with the message. Once top leadership adopts a strategy, the rest of the organization will follow.
Companies can optimize business outcomes by incorporating D&A with teams of data and software engineers who are skilled in the use of big data. Companies should measure the ROI of incorporating a D&A function in their organization and implement one if it is feasible. What types of companies can benefit from the implementation of a D&A function? How accurately can the ROI of a D&A function be measured?