There is no doubt that modern businesses are complex beasts. As the world continues to progress and evolve, doing business well is only going to become more complicated.
Cognitive biases, and importantly, the simplifying heuristics that drive them, have usually served us well in the past, because they help us cope effectively with the complexities of every-day life. However, they evolved during a time when people lived much simpler lives.
In today’s fast-paced and highly complex world, these heuristics and biases can be profoundly counterproductive. This is particularly true when we need to make complex decisions that require evaluating many different criteria at one time, which is often the case for even routine business decisions in the modern world.
In this white paper, Dr Andrew Peterson, Principal Data Scientist at Soltius, presents a business case for advanced analytics. Gartner defines advanced analytics as, “the analysis of all kinds of data using sophisticated quantitative methods (for example, statistics, descriptive and predictive data mining, simulation and optimization) to produce insights that traditional approaches to business intelligence (BI) — such as query and reporting — are unlikely to discover.” Advanced analytics provides one of the most powerful collections of tools and methodologies available today, enabling business leaders to maintain objectivity when it is needed most.
Here, Andrew examines cognitive biases commonly seen in business and details the role that advanced analytics can play in overcoming them.
Find out more about our advanced and predictive analytics practice by clicking here.