Data matters in decision making because human intuition is error-prone.
Economist Erik Brynjolfsson demonstrated that in his study. He pointed out that the more data-driven a firm is, the more productive it is by an average of 3%. On his DDD (Data-Driven Decision) spectrum companies that were at the extremes had a big difference in terms of productivity and return on investments.
In 2015, IBM acquired the Weather Co.’s digital assets for more than $2 billion.
“The Weather Company’s extremely high-volume data platform, coupled with IBM Cloud and the advanced cognitive computing capabilities of Watson, is unsurpassed in the Internet of Things,” said John E. Kelly, IBM’s senior vice president, cognitive solutions and research. “This rich platform provides our clients significant competitive advantage as they link their business and sensor data with weather and other pertinent information in real-time. We can arm entire industries with deep multimodal insights to help enterprises gain clarity and take action on the oceans of data being generated around them.”
– John E. Kelly, IBM’s senior vice president
By doing so, IBM aims at offering their clients insight into how weather affects their businesses, and which will in turn help them with decision making.
Here’s an example at how something as ubiquitous as weather can be used to make clearer decisions.
All of it driven by information.