Information paradox

By Bozidar Kralj, on September 1st, 2010

INFORMATION PARADOX IN BUSINESS INTELLIGENCE WORLD

Too much choice often means no choice

How many times you’re just standing in front of the store shelf and thought that pate, chocolate or cream to buy? However, the supermarket is not only a potentially stressful place – you just happened numerous times when you wanted to buy jeans, shirt, jacket, car …

And all this just because the election was so much that it simply could not decide.

Psychologist and professor of sociology at Swarthmore College in Pennsylvania, Barry Schwartz in his book ‘The Paradox of Choice “describes stressful situations in which a man is found when the crowd offered can not decide what to buy. And when once made, shows that relief can be measured with relief that we feel when you solve a burning issue. Such is the passion described in the example of buying jeans.

‘I went to buy jeans and I wanted to, as always, buy ordinary jeans, one who clothe for years. However, I found that this no longer exists, but because there are a number of model: slim fit, relaxed fit, easy fit, normal legs, wider legs, trim waist, faded, and this exactly … What was once ‘operations’ of five minutes, now has become a major problem, which is essentially bad. But worse than that, it became clear that I began to worry that my model is one, which hitherto have never worked. In the end I bought a pair of jeans that we are no better off than any other jeans I had, and I was less satisfied than ever before because I thought: Is there such a variety of jeans, there must be a model to me is perfect – and how I managed see, existed. It intrigued me to look closely at the paradox of the things that surround us. I realized that the more choices we have, finally we are less satisfied, “says Schwartz.

What Schwartz is also revealed is that the theme of ‘people hit a nerve.

Now, transfer information paradox into Business Intelligence world. Bunch of huge reports, financial statements, derivations of financial statements, finanial ratios, key performance indicators (thousands of KPI’s)… all information to make better decisions… too many choices.

Too many choices …

increases the amount of collected information and reduces the possibility of making wise decisions,
increases the likelihood that people will regret the decisions,
increases the likelihood of frequent regrets in the end people will not be able to make decisions,
increases the sense of missed opportunity,
increasing expectations of what should be a good choice. Since the expectation of a relatively good selection of each individual, as expectations rise, increasing the current standard of choice that can satisfy,
increases the chances that employees will blame themselves when they not met expectations. After all, with as much editing capability on offer, there really is no excuse not to make the right choice or chooses the wrong.

Business Intelligence should not be only the process of gathering (meaningful) information but should also be able to systematically identify significant trends or patterns and to offer answers, giving management the ability to make better decisions.

Catch is to interprate and integrate information.