Week 8 Discussion For this discussion, your focus will be to think through what asymmetric information, moral hazard, and adverse selection have to do with hiring a police officer. Instructions….
Which are the three most critical issues for this reading? Please explain why? Analyze and discuss in great detail
Which are the three most critical issues for this reading? Please explain why? Analyze and discuss in great detail.
1 – Many executives base company’s important decisions in intuition and hunches. In today’s era, technology is not only a luxury but also a necessity. Technology gives us power to gather and collect data that is important for decision making. Experts’ opinions are important; nonetheless, they can be mistaken. On the other hand, data is reliable and unmistakable. Evidence will always overpower intuition. Traditional executives that don’t realize or maybe don’t trust the power of big data will have a disadvantage, and sadly they will not only be limiting their own potential but also hurting the well-being of the corporation. Although it’s true that in prior generations decisions were to be made based on expertise and experience, in today’s world data and information readily available play a bigger role. Unfortunately, executives that fail to realize this will be replaced.
2 – Not every company is data-driven, and that is affecting their business. Although many businesses claim to be using big data to influence their decisions, studies show that not every company use data effectively and some of them don’t even rely on data at all. Sometimes companies (usually small) are reluctant to use data gathering technologies and justify this with its expensive cost. However, these technologies are becoming more and more economical and easier to obtain compared to when it first started. So, why are they not taking advantage of the opportunities that these tools can offer us? There are many reasons behind those decisions such as mindset, company culture, type of leadership, or poor management.
3 – There is a downside to the usage of data. It’s true that executives should place important value on data collected to be able to draw conclusions and make better decisions that benefit the company. However, this shouldn’t prevent executives from using logical reasoning and applying their own knowledge and judgement. That is, executives shouldn’t rely alone on data, but in a combination of information collected and problem-solving skills. Data alone will not make a company successful; leaders with knowledge and skills are essential. The organization’s leadership should be able to analyze and interpret data to effectively exploit its full benefit.