As the world of business has evolved, making accurate decisions has become more critical than ever before. Since making a wrong decision can negatively impact your business and your bottom line, it’s smart to understand how you can improve your decision-making process and get better results next time around.
An emerging field called decision intelligence (DI) can help with this challenge. Depending on the circumstance, DI can help you evaluate your business choices or maximize your success in future endeavors.
What is decision intelligence?
Decision intelligence is a trending field that combines business intelligence (BI) and artificial intelligence (AI) to improve organizations’ decision-making processes. DI uses data and predictive models to make business decisions faster, easier, more accurate, and more consistent.
Decision intelligence provides guidance for how businesses can best identify opportunities, develop strategies, make plans, launch projects, and predict outcomes. Decision intelligence models enable companies to optimize these efforts by providing valuable insights into business operations at every level of business activity.
Read more on TechRepublic: CXOs: Are we ready for AI to assist human decision-making?
Benefits of decision intelligence
By incorporating decision intelligence into your business processes, you can dramatically improve outcomes for yourself, your organization, and your customers. Some benefits of decision intelligence include:
Better decision quality and speed
When you have access to all relevant information and tools, you can make more accurate decisions based on complex data rather than hunches or gut feelings. In addition, decisions made using decision intelligence tools take less time to complete because they don’t require hours of research or meetings with multiple stakeholders—the relevant information is already available in an easily digestible format.
Using decision intelligence tools to inform your decisions can eliminate much of your trial-and-error process and spend less time on things that don’t work out in your favor. This will allow you to focus on opportunities that will have a greater impact on your business.
Our brains are wired to make certain decisions based on our emotions, past experiences, or other factors that may not be entirely logical. While these biases help us make quick decisions in some cases, they can also lead to major mistakes when we’re unaware of them—and decision intelligence can help you recognize your own biases to take them into account when making important choices.
Decision intelligence vs. business intelligence
While there are many similarities between decision intelligence and business intelligence, a few key differences are worth noting.
While both types of analytics rely heavily on statistical analysis techniques such as regression modeling or cluster analysis, they do so for different purposes. Business intelligence uses these techniques to identify patterns within historical data sets. Decision intelligence uses these same techniques to predict future trends based on current data sets.
The most important difference between business intelligence and decision intelligence is that BI solutions tend to be more descriptive—they tell you what happened—whereas DI solutions tend to be more prescriptive—they tell you what will happen next. In other words, BI helps you analyze past events, whereas DI helps you anticipate future events by making predictions about how certain variables will affect one another over time.
Read more: Top Business Intelligence Trends for 2022
Examples of decision intelligence
Decision intelligence is transforming businesses by providing a systematic approach to decision-making that ensures optimal performance in crucial areas such as sales, marketing, strategy development, resource allocation, product selection, and more.
Recruiting new talent can be one of your organization’s most difficult tasks, especially when limited resources are available. However, you can leverage decision intelligence software to analyze data on candidates and provide recommendations based on best practices and past successes. This allows recruiters to focus their efforts on candidates who have a higher likelihood of success within their organizations.
Related: Best HRIS Systems for 2022
Building a successful brand requires careful planning and analysis across multiple touchpoints. By leveraging decision intelligence software, marketers can quickly identify high-performing campaigns across different channels—from social media to email—and maximize ROI for each campaign.
To generate leads for your business, you need real-time insight into your prospects’ preferences and how they prefer to receive information about your products or services. Using decision intelligence tools, you can gain valuable insights from customer data and use them to tailor messaging, increase conversion rates, and boost revenue.
Retail store management
Making informed decisions about inventory levels and pricing is critical to maintaining profitability in retail environments. With decision intelligence tools, retailers can optimize pricing strategies and inventory levels based on demand trends and ensure they’re meeting customers’ needs while maximizing profit margins.
How is decision intelligence transforming businesses?
There are lots of ways that decision intelligence is transforming businesses. For example, it can create more efficient workflows and processes, lead to more accurate forecasts, reduce costs, improve customer service, boost profitability, and increase productivity. In addition, decision intelligence helps streamline many aspects of a business by enhancing efficiency across various industries.
Explore top solutions on IT Business Edge: Best Decision Making Tools & Software 2022