Essay: The 4 stages of data analysis significantly influencing the traditional business operation / decision making

What are the 4 stages, as identified in the article, of data analysis significantly influencing the traditional business operation / decision making in specific industry
The four stages that explain in this article are:
‘ Pre-disruption
Stage one is pre-disruption and the best way to see it is hindsight. It is normally used in those industries where income depends upon market research. Best example of this stage is Hollywood. Where movies and TV show’s income depends upon box office report.
‘ Disruption
Second stage is Disruption; in this stage we change traditional and manual ways to modern and technological tools. The best example of it is Politics and in Politics we see Disruption in the whole Obama’s campaign of recent elections. Where its old fashioned campaign operators gave the task to a group of technologists to lead it. So it proves more effective and a good technique.
‘ Overshoot
The common problem is that all new systems are rational but unpredictable. For example in managerial level, if one thing imposed quant’s come into an industry and create confusion, then no one tell when to stop it. Best example of overshoot is policy or ways that we indulge in system.
Example of it is finance, where the rise of quantification could be concentrated in decision making and moneymaking within a small group of people at a bank’s headquarters.
‘ Synthesis
The forth step is synthesis. In it we change old version with new but in fusion sense. Best example of it is weather forecasting.
Based on the explanation in the article, which discipline,/ industry do u think will be ripe for the next brake through in big data analysis and why ?
in this article we discuss many industries like film. Finance, banking. Security, education etc. I think banking industry because they use all data analysis tools to gather or implement it. So, in my opinion this is most promising industry for this respect.
3- In your own words explain what potential disadvantages over- re-lying on data analysis would bring to decision making . Give 3 examples and cleivy your answers ?
Answer:
Decision-making is an important skill for operational team. It is an important component of business success. Good decisions always mean good business.
The decision making concept has a long history; choosing best thing among all possibilities has always been a part of life. But it is a fact that business decision making has described and developed in recent years. Big demerit is the field. Progress includes in the elements of decision making as the problem context; the processes of problem finding, problem solving, legitimating; and procedural or technical aids.
The Elements of Decision Making
THE PROBLEM CONTEXT. Problems are included in all decisions.
‘ The macro context it gathered attention about global issues like exchange rates, national concerns , culture and provincial and state.
‘ . The meso context deals with organizational structure and cultures
‘ . The micro context deals in immediate decisional environment for example employees, board and office.
Decision processes vary from country to country and organization to organization. But companies should be take these three levels into their thinking when a decision needs to be made..
Difficulties
A difficulty is in decision making is a kind of failure to act when one is too close to the decision. Organizations are usually work in a “reactive” mode. Problems are “found when they affect n the business.
Proactively can be proved a great power in decision making, but its requirement is a decision intelligence process .
For good business first we identified the information about nature of the problem and then necessary actions are made to go from there.
Problem Solving
Problem solving is about sometimes referred to their problem management. All things can be divided into two parts’process and decision. And data entry
RATIONALES.
The both parties adopted v styles in their decision making processes. It lies in accordance to business facts like realms , market competes, owner’s personality and problem solver, etc.
SETTINGS.
In , some organizations decisions making is done without knowing input amount or feedback. Home-based business is its kind and the owners without any employees, for example, is a far different approach to solve the problem. A business owners who have dozens of employees and several distinct internal departments. The second owners will be much more likely to include findings of meetings, task forces, and other information that gathered from the efforts used in decision making process now the business owner who has no employees find it useful to gathered information from external sources Like accountants, fellow businesspeople etc. to do important business decisions. Both owners used all the key decisions that are required for their business, he or she is responsible for the success or failure of their business. As a result, who generally do not have experience, they needed to make well-informed decisions in the areas in which they are not familiar.
SCOPE AND LEVEL.
Lastly attention is necessary to be paid for every problem, tasks and scope of organizational level. Problems of large scope business level need top level management. So, top levels of delt with it. Same like problems of smaller level handled by lower levels of management in the organization. Top level management groups are spending much time in deciding low-level problems, that’s why many issues of high level importance are pending without addressed or resolved.
PROCEDURAL AND TECHNICALAIDS. In recent years, a number of procedural and technical aids have been developed to help business managers in their decision making processes. Most of these have taken the form of software programs that guide individuals or groups through the various elements of the decision making process in a wide variety of operational areas (budgeting, marketing, inventory control, etc.). Leadership seminars and management training offer guidance in the decision making process as well.
OUTCOME. Whatever decision making process is utilized, those involved in making the decision need to make sure that a response has actually been arrived at. All too often, meetings and other efforts to resolve outstanding business issues adjourn under an atmosphere of uncertainty. Participants in decision making meetings are sometimes unsure about various facets of the decision arrived at. Some meeting participants, for example, may leave a meeting still unsure about how the agreed-upon response to a problem is going to be implemented, while others may not even be sure what the agreed-upon response is. Indeed, business researchers indicate that on many occasions, meeting participants depart with fundamentally different understandings of what took place. It is up to the small business owner to make sure that all participants in the decision making process fully understand all aspects of the final decision.
IMPLEMENTATION. The final step in the decision making process is the implementation of the decision. This is an extremely important element of decision making; after all, the benefits associated with even the most intelligent decision can be severely compromised if implementation is slow or flawed.
Factors in Poor Decision Making
Several factors in flawed decision making are commonly cited by business experts, including the following: limited organizational capacity; limited information; the costliness of analysis; interdependencies between fact and value; the openness of the system(s) to be analyzed; and the diversity of forms on which business decisions actually arise. Moreover, time constraints, personal distractions, low levels of decision making skill, conflict over business goals, and interpersonal factors can also have a deleterious impact on the decision making capacities of a small (or large) business.
A second category of difficulties is captured in a number of common pitfalls of the decision procedure. One such pitfall is “decision avoidance psychosis,” which occurs when organizations put off making decisions that need to be made until the very last minute. A second problem is decision randomness. This process was outlined in the famous paper called “A Garbage Can Model of Organizational Choice” by Cohen, March and Olsen. They argued that organizations have four roles or vectors within them: problem knowers (people who know the difficulties the organization faces): solution providers (people who can provide solutions but do not know the problems); resource controllers (people who do not know problems and do not have solutions but control the allocation of people and money in the organization) and a group of “decision makers looking for work” (or decision opportunities). For effective decision making, all these elements must be in the same room at the same time. In reality, most organizations combine them at random, as if tossing them into a garbage can.
Decision drift is another malady that can strike at a business with potentially crippling results. This term, also sometimes known as the Abilene Paradox in recognition of a famous model of this behavior, refers to group actions that take place under the impression that the action is the will of the majority, when in reality, there never really was a decision to take that action.
Decision coercion, also known as groupthink, is another very well known decision problem. In this flawed decision making process, decisions are actually coerced by figures in power. This phenomenon can most commonly be seen in instances where a business owner or top executive creates an atmosphere where objections or concerns about a decision favored by the owner/executive are muted because of fears about owner/executive reaction.