An Analysis of Data Driven, Decision-Making Capabilities of Managers in Banks
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Organizations are adopting data analytics and Business Intelligence (BI) tools to gain insights from the past data, forecast future events, and to get timely and reliable information for decision making. While the tools are becoming mature, affordable, and more comfortable to use, it is also essential to understand whether the contemporary managers and leaders are ready for Data-Driven Decision Making (DDDM). We explore the extent the Decision Makers (DMs) utilize data and tools, as well as their ability to interpret various forms of outputs from tools and to apply those insights to gain competitive advantage. Our methodology was based on a qualitative survey, where we interviewed 12 DMs of six commercial banks in Sri Lanka at the branch, regional, and CTO, CIO, and Head of IT levels. We identified that on many occasions, DMs' intuition overrules the DDDM due to uncertainty, lack of trust, knowledge, and risk-taking. Moreover, it was identified that the quality of visualizations has a significant impact on the use of intuition by overruling DDDM. We further provide a set of recommendations on the adoption of BI tools and how to overcome the struggles faced while performing DDDM.
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