Big data in managerial decision-making: concerns and concepts to reduce risk

Abstract

This concept paper examines issues concerning information accuracy and privacy that business managers should consider to reduce risks in decision-making when using the large volumes of data that is now readily available. Related literature on ‘big data’ and managerial decision-making concepts in relation to ethical and legal issues are considered and expounded. Previous decision-making schemas are surveyed and enhanced based on the analysis of current observations. A proposed model of managerial decision-making with big data that can help formulate more ethical and legally sound choices is presented in illustration with a detailed explanation. The limits of the ideas offered as well as recommendations for further research and policies on the usage and outcomes of big data’s impact on organisational effectiveness are suggested.