Flevy Blog is an online business magazine covering Business Strategies, Business Theories, & Business Stories.

Strategic Decision Making with Machine Learning (ML)

Editor's Note: Take a look at our featured best practice, ChatGPT - The Genesis of Artificial Intelligence (116-slide PowerPoint presentation). Introduction: From the ambitious vision of the Dartmouth Conference in 1956, which proclaimed that "Every aspect of learning or other feature of intelligence can, in principle, be so precisely described that a machine can be made to simulate it," to Larry Page's futuristic dream of [read more]

Also, if you are interested in becoming an expert on Digital Transformation, take a look at Flevy's Digital Transformation Frameworks offering here. This is a curated collection of best practice frameworks based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. By learning and applying these concepts, you can you stay ahead of the curve. Full details here.

* * * *

Automation has a profound role in improving Operational Excellence and Decision making.  Organizations, these days, are increasingly using Machine Learning (ML) to improve the Strategic Decision making expertise of their leaders.

Global research by MIT Sloan Management Review in collaboration with Google—involving 4,700 executives and a number of Key Informant Interviews—indicates that ML is gradually transforming the way enterprises build and analyze value.  This is attributed mainly to Machine Learning’s ability to render Key Performance Indicators (KPIs) more analytical and rigorous.  More rigorous KPIs allow executives to augment business processes by using strategic measures to guide ML algorithms.

Organizations that are already spending resources on and employing ML to serve their customers are fundamentally distinct from those that don’t invest in ML.  They have a broader perspective of their customers and analyze KPI data and reports regularly.  It allows enterprises to liberate people from routine tasks and focus their attention on strategic initiatives.

Machine Learning-focused enterprises consider data as one of their most valuable assets and embrace ML and other technological tools of this age to create a Competitive Advantage.

Key findings of the MIT SMR study indicate that:

  • Around 75% of the study participants considered that investing in Machine Learning and Automation allows them achieve their functional KPIs efficiently.
  • The organizations with most exciting and impressive ML programs were quite determined in managing data as a notable asset.
  • Data-driven enterprises have a clear competitive advantage over businesses that are sluggish in adopting data or ML competencies.

The Marketing unit is typically the foremost adopter of Machine Learning in an enterprise.  Advertising, Segmentation, and Customer Intelligence are the areas where ML is most widely used.

Technology leaders employ 3 crucial Machine Learning best practices to enable Strategic Decision Making:

  1. Employ KPIs to Enable an Integrated, Single View of Customers.
  2. Analyze and Interpret Factors Driving KPIs.
  3. Evaluate KPI Reports Carefully and Regularly.

Let’s dive deeper into the details of the best practices.

Employ KPIs to Enable an Integrated, Single View of Customers

A data-powered, comprehensive customer perspective is essential for business leaders today.  Organizations that incentivize their people to use Machine Learning with relevant quantifiable metrics tend to have an all-encompassing, broader picture of their customers.

Rewarding the use of ML and establishing appropriate practical and realistic KPIs to assess that assists the businesses in developing a single view of the customers.  This enables the businesses to create proper customer segmentation and plan effective engagements with the customers.

Analyze and Interpret Factors Driving KPIs

The next best practice to enable Strategic Decision Making through ML use is to interpret the underlying factors that impact their performance indicators.  The corporations that reward the use of ML are more inclined to agree to the point that they can evaluate the factors and data that become the basis of their KPIs.  The competence to analyze and interpret the elements that make up organizational KPIs helps to enhance Operational Excellence.

This competence promotes improved common understanding of organizational data and customer requirements, thereby steering data-driven, Decision making.  Data, analytics, and ML are employed by leading enterprises to run software and applications essential for predicting clients’ requirements, manage systems needed to interpret business needs, and make these systems learn and become more intelligent.

Interested in learning more about the Machine Learning best practices to enable Strategic Decision Making ? You can download an editable PowerPoint on Strategic Decision Making with Machine Learning here on the Flevy documents marketplace.

Do You Find Value in This Framework?

You can download in-depth presentations on this and hundreds of similar business frameworks from the FlevyPro LibraryFlevyPro is trusted and utilized by 1000s of management consultants and corporate executives. Here’s what some have to say:

“My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions. I strongly recommend FlevyPro to any consultant serious about success.”

– Bill Branson, Founder at Strategic Business Architects

“As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value.”

– David Coloma, Consulting Area Manager at Cynertia Consulting

“FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The quality of the decks available allows me to punch way above my weight — it’s like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead.”

– Roderick Cameron, Founding Partner at SGFE Ltd

158-slide PowerPoint presentation
Unleash the Power of Artificial Intelligence: The Complete Handbook In a world driven by innovation, Artificial Intelligence (AI) stands as the cornerstone of technological advancement. Are you ready to tap into the limitless potential of AI? Welcome to the comprehensive guide that will [read more]

Want to Achieve Excellence in Digital Transformation?

Gain the knowledge and develop the expertise to become an expert in Digital Transformation. Our frameworks are based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. Click here for full details.

Digital Transformation is being embraced by organizations of all sizes across most industries. In the Digital Age today, technology creates new opportunities and fundamentally transforms businesses in all aspects—operations, business models, strategies. It not only enables the business, but also drives its growth and can be a source of Competitive Advantage.

For many industries, COVID-19 has accelerated the timeline for Digital Transformation Programs by multiple years. Digital Transformation has become a necessity. Now, to survive in the Low Touch Economy—characterized by social distancing and a minimization of in-person activities—organizations must go digital. This includes offering digital solutions for both employees (e.g. Remote Work, Virtual Teams, Enterprise Cloud, etc.) and customers (e.g. E-commerce, Social Media, Mobile Apps, etc.).

Learn about our Digital Transformation Best Practice Frameworks here.

Readers of This Article Are Interested in These Resources

22-slide PowerPoint presentation
Technological innovation has developed Artificial Intelligence's ability to create intelligent machines that work and react like humans. Some machines have reached the performance levels of humans in performing certain specific tasks, so that artificial intelligence is now found in applications as [read more]

15-page PDF document
24-slide PowerPoint presentation

About Mark Bridges

Mark Bridges is a Senior Director of Strategy at Flevy. Flevy is your go-to resource for best practices in business management, covering management topics from Strategic Planning to Operational Excellence to Digital Transformation (view full list here). Learn how the Fortune 100 and global consulting firms do it. Improve the growth and efficiency of your organization by leveraging Flevy's library of best practice methodologies and templates. Prior to Flevy, Mark worked as an Associate at McKinsey & Co. and holds an MBA from the Booth School of Business at the University of Chicago. You can connect with Mark on LinkedIn here.

, , , , , , , , , ,

Complimentary Business Training Guides

Many companies develop robust strategies, but struggle with operationalizing their strategies into implementable steps. This presentation from flevy introduces 12 powerful business frameworks spanning both Strategy Development and Strategy Execution. [Learn more]

  This 48-page whitepaper, authored by consultancy Envisioning, provides the frameworks, tools, and insights needed to manage serious Change—under the backdrop of the business lifecycle. These lifecycle stages are each marked by distinct attributes, challenges, and behaviors. [Learn more]

We've developed a very comprehensive collection of Strategy & Transformation PowerPoint templates for you to use in your own business presentations, spanning topics from Growth Strategy to Brand Development to Innovation to Customer Experience to Strategic Management. [Learn more]

  We have compiled a collection of 10 Lean Six Sigma templates (Excel) and Operational Excellence guides (PowerPoint) by a multitude of LSS experts. These tools cover topics including 8 Disciplines (8D), 5 Why's, 7 Wastes, Value Stream Mapping (VSM), and DMAIC. [Learn more]
Recent Articles by Corporate Function






The Flevy Business Blog (https://flevy.com/blog) is a leading source of information on business strategies, business theories, and business stories. Most of our articles are authored by management consultants and industry executives with over 20 years of experience.

Flevy (https://flevy.com) is the marketplace for business best practices, such as management frameworks, presentation templates, and financial models. Our best practice documents are of the same caliber as those produced by top-tier consulting firms (like McKinsey, Bain, Accenture, BCG, and Deloitte) and used by Fortune 100 organizations. Learn more about Flevy here.

Connect with Flevy:


About Flevy.com   /   Terms   /   Privacy Policy
© . Flevy LLC. All Rights Reserved.