Data v. Gut: How To Best Make Decisions?
Netflix is one of the most data-heavy companies. It collects and analyzes humungous amount of data on customer behavior.
Still, Netflix cofounder and CEO Reed Hastings said at the DLD Conference held this week in Munich that, while his company is known for its investment in data analytics, it ultimately relies on “informed intuition” to make decisions:
“We start with the data. But the final call is always gut. It’s informed intuition.“
Netflix is particularly interesting in this regard because it combines a highly subjective business and a treasure trove of highly objective data.
We must indeed favor Smart Data over Big Data. Smart Data separates the signal from the noise and delivers specific information that businesses can act on.
A smart data approach seeks a statistical needle in a data haystack rather than getting lost within the volume of data available. These statistical nuggets enable business executives to rely on their gut feeling to make decisions.
Declaring a winner between data and gut in decision-making would be giving up on either human or artificial intelligence. Nowadays, the best decision-makers combine the two.