The long-term success of a company depends on the accumulation of four things: capital, industry experience, customers and decision-making experience.
The importance of the first three elements is quite easy to understand but the decision-making part is often underappreciated.
Consider this: if you go to see a doctor, and the doctor gives you a prescription after five minutes of consultation, would that be the best he could do? What if your condition has been constantly monitored by certain equipment and the doctor can draw on the collected data before making a decision? Would that enhance the results?
To take this one step further, if there is a database of similar cases and the treatment results can be analyzed systematically, would the findings help doctors improve their diagnosis?
The answer is obviously affirmative. It’s the same with company management.
In this big data era, all sorts of data are generated in our daily lives. How shall companies master these resources and improve their fortunes in the long run? That is the question business managers should ask.
The huge amount of data available and the advance of artificial intelligence are going to drastically change the speed and accuracy of decision-making. There are just so many possibilities.
Such new technology will have a critical impact on operations of corporates. A recent survey in the United States finds that 80 percent of companies are investing in AI, and those who have not yet done so typically cite the following obstacles: the lack of IT infrastructure, shortage of talent, insufficient budget and legal complications.
This article appeared in the Hong Kong Economic Journal on Dec 19
Translation by Julie Zhu
[Chinese version 中文版]
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