Human decision making is a complicated phenomenon. Many studies on the topic highlight the parameters defining our mental processes, even if they can’t fully explain them. These studies often find that we can be guided towards an outcome that we know is against our best interests. And this is the case in business, too.
Convincing Your Company Leaders to Invest in New Technology
It’s no surprise that factors such as cost, and the availability of skilled workers, can stall the pursuit of digital strategies. More surprising, however, was the observed inertia around technology (especially at times that necessitate digitalization to remain agile), which can be explained by psychological factors holding business leaders back.
For business owners and leaders tasked with driving digital strategy, it is their perception of risk that is more impactful on success than anything else. Deciding to incorporate digital tools or infrastructure can be daunting because of the unknown it represents, but shying away from the process can be a far riskier path. By understanding the psychological barriers behind digital decision-making, industry stakeholders can and should encourage technology adoption in small and medium-sized businesses — in doing so, they will strengthen the backbone of the global economy.