The opportunity cost of these poor decisions is massive. In a 2019 Gartner study, the firm found that on average, S&P500 companies can improve EBITDA by as much as 3% (absolute increase by improving decisions). They measured good decisions vs. bad decisions based on exception rates and a few other factors. This is a nearly 30% improvement based on average EBITDA of S&P500 firms, or a $700 billion opportunity in EBITDA expansion for S&P500 companies.
...
decision systems of record allow us to go back to previous decisions, track how they did vs. expectations, understand where things went well and most importantly learn and disseminate decision best practices across the organization."
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