Cognitive Design

Analytics involves using data and math to make decisions and run the organization.  With current technologies, oceans of data and advanced simulation and statical techniques what analytics means for all aspects of business – strategy, marketing, product development, innovation, customer service and real time operations – can be profound. That is one of the key findings in a new report, Analytics: The New Path to Value,  from MIT’s Sloan School of Business and IBM. The study emphasizes that top performer see analytics as a differentiator and they achieve value, not so much by mastering data and technology but by doing good design.

“The adoption barriers organizations face most are related to management and culture rather than being related to data and technology. The leading obstacle to widespread analytics adoption is lack of understanding of how to use analytics to improve the business, according to almost four of 10 respondents. More than one in three cite lack of management bandwidth due to competing priorities. Organizations that use analytics to tackle their biggest challenges are able to overcome seemingly intractable cultural challenges and, at the same time, refine their data and governance approaches.”

Developing the shared mental models needed to crank value from analytics is a cognitive design challenge.  It requires a keen understanding of how managers really think including the cognitive biases involved in decision-making. It also means skill in using visualization, scenarios and other techniques to lower the cognitive load of data complexity.  If we don’t shape the practices of analytics on the basis of how minds really work there is little chance of creating value from it.

This entry was posted on Friday, January 7th, 2011 at 12:06 pm and is filed under Cognitive Training, Service Innovation, Technique. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.