"Predictive analytics is proving itself both powerful and perilous. Powerful, because advanced algorithms can take a near-unlimited number of factors into account, provide deep insights into variation, and scale to meet the needs of even the largest company. Perilous, because bad data and hidden false assumptions can seriously mislead. Further, algorithms cannot (yet, anyway) tap intuition — the soft factors that are not data inputs, the tacit knowledge that experienced managers deploy every day, nor the creative genius of innovators.
So what should managers, especially leaders, do? The obvious answer is employ both computer-based programs and your own intuition. In this post, I’ll use a series of simple plots to explain how to tap the potential of predictive analytics, sidestep the perils, and bring both the data and your good judgment to bear."
Via Bonnie Hohhof