Validity vs. Reliability: Implications for Management Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

In today's economy has changed, business is increasingly used management science and information technology in an attempt to create a reliable - predictable results on an ongoing basis. The author argues that, despite these efforts, there is little evidence that the organization's ability to accurately understand and predict the future of the world increased by one iota. Massive cost of these systems has not prevented corporations in ambush new competitors and changing markets, and the author argues that the reason for this is a natural tension between classes reliability. Reliability tends to produce consistent, predictable results using the system, which are limited to the use of objective data - for example, to predict future customer purchases, using data collected from its Customer Information File (CIF) in the CRM system. Given the subjective factors, such as mood client or their relation to the new products will be considered as an abomination in reliable systems. Duration, on the other hand, tends to produce results that meet the desired goal, even if the system can not be used to produce consistent, predictable results. The author describes the three main consequences of obsession reliability of control and says that to be successful in the next 20 years, companies have to figure out how to become a more welcoming place for the action-oriented systems and for people who are more comfortable handling fuzzy "data and their use solutions.
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by Roger Martin Source: Rotman School of Management, 5 pages. Publication Date: January 1, 2005. Prod. #: ROT011-PDF-ENG