Forum Views - July 2023

Welcome to interactive presentation, created with Publuu. Enjoy the reading!

Global

FORUM VIEWS - JULY 2023

Decisions: The obvious yet mostly neglected performance

indicator

In today's fast-paced und often highly uncertain business

environment, making effective decisions is crucial for leaders

and their companies to stay competitive. More than a decade

ago, a study by Bain among 800 international companies

showed that the quality of decisions of executives and their

companies' financial results correlate at a 95per cent

confidence level for every country, industry and company size

they studied. What is interesting for any investor is that the

top-quintile companies with respect to the quality of their

decision-making generated on average total shareholder

returns nearly 6 percentage points higher than those of other

companies.

Consequently, financial investors are well-advised that when

they analyze the reorganization plans of CEOs and their

companies, they put much more focus on whether these plans

enable optimal decision-making processes rather than their

impact on classic organizational structures along products or

markets. Since Bain’s original study, more research has

confirmed that any organizational structure or reorganization

can be completely dysfunctional if it is not aligned with the

required decision-making processes on operational, tactical

and strategic levels. But how can you assess a company’s

professional approach to decision-making?

Solid decision-making is a complex process influenced by

various factors, including high-quality information, human

biases, different opinions, and the need for consensus among

decision-makers. Organizations are increasingly turning to the

concept of Decision Intelligence (DI) to navigate these

challenges and improve decision outcomes.

In short, Decision Intelligence is a holistic approach to

decision-making that combines human judgment, big data

analysis, and technological advancements. Companies like

Google, IBM, Deloitte, Cognizant or SatSure recognize the

significance of DI and have incorporated it into their operations

and the solutions for their clients. SatSure, for example,

leverages ‘Decision Intelligence from Space’ to support banks

in India along the entire agriculture loan cycle for farmers or the

planning and financing of infrastructure projects.

Decision Intelligence: The new boy/girl in town

Insights

BETTER PERFORMANCE

WITH THE DECISION INTELLIGENCE CUBE

Dr. Roger Moser

Chairman,

SatSure

Senior Lecturer

Macquarie University

In addition, Gartner Group has recently identified Decision

Intelligence to be at the Innovation Trigger of the Hype Cycle

for Emerging Technologies in Finance. For Gartner, DI is a

practical discipline used to improve decision-making by

explicitly understanding and engineering how decisions are

made, and how outcomes are evaluated, managed and

improved via feedback.

The Decision Intelligence Cube (DI-Cube) is a work-in-progress

concept that we at SatSure have developed when helping

executives and companies to analyze their decision-making

behaviour, attitude, and structures (Exhibit 1). The DI-Cube

consists of three dimensions to understand a company’s

decision-making from a holistic view:

Understanding the decision-making approach of a

company from a holistic perspective: The Decision

Intelligence Cube

Solid decision-making is a complex

process influenced by various factors,

including high-quality information,

human biases, different opinions, and

the need for consensus among

decision-makers. Organizations are

increasingly turning to the concept of

Decision Intelligence (DI) to navigate

these challenges and improve decision

outcomes.

(Sydney, New South Wales, Australia)

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64