Study shows many senior managers distrust big data
A new Massey University study shows many top executives are failing to capitalise on the benefits of big data,
preferring to rely on their own intuition.
Dr Nazim Taskin and Professor David Pauleen from Massey’s School of Management, with colleagues from Auckland and
Queensland Universities, surveyed 116 managers from predominantly large and medium-sized New Zealand businesses. The aim
was to examine the impact of data analytics on managerial decision-making.
While there is growing awareness of big data, most managers are cautious about using analytics for making decisions due
to concerns about data reliability, Dr Taskin says.
“Nearly two-thirds of the managers interviewed said they had no confidence or trust in big data, preferring to rely
instead on their intuition and experience to make decisions,” he says. “One-quarter of participants also confessed they
had only a modest knowledge of what big data is, or what it can do.”
The study also found those who favoured analytics over intuition were more often mid-level managers who were not in a
position to use big data insights for strategic company decisions.
“Our research revealed top executives are generally not as competent as they could be in using analytic tools and
techniques,” Dr Taskin says. “It seems they rely on other managers within the organisation to generate big data
insights, and those insights are used to confirm their own intuition or are ignored if they conflict with their gut
feeling.”
This is not to say that using intuition is wrong, Dr Taskin says.
“Data analytics should complement, not replace, intuition. But, to make wise decisions, top level executives need to be
able to judge the relevance, value and ethical implications of big data insights.”
The study also showed conflicting notions of the value of big data between top-level and mid-level managers. Mid-level
managers tended to seek insights to improve business processes, while top-level executives sought insights to improve
the company’s bottom line.
Dr Taskin says developing the technical understanding of analytics within the top tiers of management will ensure
organisations receive the most value from the data they collect.
“Simply collecting data without the skills to analyse it is costly, and analysis without direction can be deadly,” he
says. “On a positive note, it’s clear that once a manager experiences good outcomes with big data, it builds confidence
in applying analytics tools more regularly.”
Dr Taskin is now undertaking further research to better understand the impact of intuition and data analytics on
decision-making among senior managers.
“We hope further investigation will allow us to identify the factors inhibiting the effective use of big data, and how
these might be remedied.”