Data-Driven Decision Making
The Key to Making Better Decisions
The Basic Idea
Many of the decisions we make every day are grounded in models, or rather, representations of how something works. Sometimes these models are mental, like when we look into an empty room and envision how we may decorate it. Models may also be visual, like referencing Google Maps when traveling to a new destination. We frequently use these models to help us make better decisions and to simplify tasks.
The models we use to make decisions can also be mathematical, such as abstract models that employ mathematical language to describe the behavior of a system.7 This particular type of model falls under the umbrella of decision science: the data-driven, interdisciplinary application of behavioral sciences, business, computer science and technology.6 In essence, decision science is about using data to optimize the decision-making process.
Although most people do not use decision science explicitly in their day-to-day lives, it is commonly used by businesses and economists to undertake risk analysis, cost-benefit and cost-effectiveness analysis, simulation modeling and more.7
While data science is perhaps the most broadly used term, ‘decision science’ seems like the more fitting description of how machines are assisting business leaders in solving problems that have traditionally relied on human judgment, intuition and experience.
– K.V. Rao, founder and CEO of sales forecasting software company Aviso
About the Authors
Dan Pilat
Dan is a Co-Founder and Managing Director at The Decision Lab. He is a bestselling author of Intention - a book he wrote with Wiley on the mindful application of behavioral science in organizations. Dan has a background in organizational decision making, with a BComm in Decision & Information Systems from McGill University. He has worked on enterprise-level behavioral architecture at TD Securities and BMO Capital Markets, where he advised management on the implementation of systems processing billions of dollars per week. Driven by an appetite for the latest in technology, Dan created a course on business intelligence and lectured at McGill University, and has applied behavioral science to topics such as augmented and virtual reality.
Dr. Sekoul Krastev
Sekoul is a Co-Founder and Managing Director at The Decision Lab. He is a bestselling author of Intention - a book he wrote with Wiley on the mindful application of behavioral science in organizations. A decision scientist with a PhD in Decision Neuroscience from McGill University, Sekoul's work has been featured in peer-reviewed journals and has been presented at conferences around the world. Sekoul previously advised management on innovation and engagement strategy at The Boston Consulting Group as well as on online media strategy at Google. He has a deep interest in the applications of behavioral science to new technology and has published on these topics in places such as the Huffington Post and Strategy & Business.
