Title: A measurement model of value of data for decision-making in the digital era

Authors: Ganesh Sankaran; Martin Knahl; Guido Siestrup; Ismini Vasileiou

Addresses: Hochschule Furtwangen University, Robert-Gerwig-Platz 1, 78120 Furtwangen, Germany; University of Plymouth, Drake Circus, Plymouth, Devon PL4 8AA, UK ' Hochschule Furtwangen University, Robert-Gerwig-Platz 1, 78120 Furtwangen, Germany ' Hochschule Furtwangen University, Robert-Gerwig-Platz 1, 78120 Furtwangen, Germany ' De Montfort University, The Gateway, Leicester, LE1 9BH, UK

Abstract: Despite burgeoning opportunities for data-driven decisions, research shows that decision makers are failing to make sense of data within a broader context of organisational change which presents the following pertinent questions: 1) How can decision makers measure the value of data by giving a holistic account?; 2) How should the organisation-specific blending of machine and human rationality be factored in the measurement model? This study tackles these questions by proposing a novel approach that combines system dynamics and the ability to incorporate data science methods. In addition to a conceptual description, this paper also describes a feasibility test conducted on a small-scale prototype set in a supply chain context. The results show that the use of sophisticated models that have a local scope ('locally rational') might have unintended global consequences. It underscores the need for a holistic model in the decision makers' toolkit providing the ability to run targeted simulations to assess digital investments.

Keywords: digital technologies; digital transformation; data-driven decisions; big data; quantifying value of data; bounded rationality; system dynamics; human-AI collaboration; supply chain management.

DOI: 10.1504/IJISM.2021.113570

International Journal of Integrated Supply Management, 2021 Vol.14 No.1, pp.50 - 76

Received: 09 Jan 2020
Accepted: 22 May 2020
Published online: 11 Mar 2021 *

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