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Agency Theory: Because what use is data, if it doesn't lead to actions?

Agency Theory: Because what use is data, if it doesn't lead to actions? | Decision Intelligence News | Scoop.it

Agency Theory: The existence of massive data sets in many arenas is creating new challenges. Most people know about the issue of spurious correlations that do not represent true cause-and-effect. However a second challenge is more insidious and costly: this is the expense – which can run into the billions of dollars – of managing data that does not lead to actionable and valuable outcomes for an organization. For this reason, organizations that can identify the 20% of data that represents 80% of value realize a substantial advantage.


In this talk, I introduce Agency Theory, which is a mathematical framework for analyzing decision models to solve this problem. Agency theory borrows key ideas from machine learning, to solve a different purpose: rather than finding a set of parameters that best fits a data set, the objective is to find a set of decisions that leads to the most favorable set of outcomes, along with the data that is most valuable in supporting those decisions.

Lorien Pratt's insight:

Please join my Quantellia cofounder Mark Zangari in Seattle on May 1.  This is a landmark talk.  I'll be there too.

James Dolan's curator insight, March 8, 2015 12:30 PM

this is a more general problem affecting how we translate clinical research into practice and organize health systems that is too rarely discussed.

Decision Intelligence News
AI/BI/CI/DI: Decision intelligence (DI) solves the world's most complex problems by connecting actions to outcomes.  It connects collaborating human decision makers to knowledge and also to technologies like machine learning, AI, deep learning, visual decision modeling, complex systems modeling, big data, predictive analytics, UX design, statistical analysis, business intelligence, business process management, causal reasoning, evidence-based analysis, and more. See https://en.wikipedia.org/wiki/Decision_Intelligence. For an overview, see the webinar at http://youtu.be/XRTJt3bVCaE, http://www.lorienpratt.com, and the Decision Intelligence group: http://www.linkedin.com/groups?gid=205078.   Also, my company offers DI and machine learning consulting services.  See http://bit.ly/1X8O2zF to learn more.  Don't miss the latest DI news! Sign up at subscribe.decisionintelligencenews.com.
Curated by Lorien Pratt