Data Driven Is A Mugs Game
by People Power Tuesday, June 7, 2016

Too many people are data-driven - if it is all about the data - you will be replaced.

Data-first vs data-second.

Another way to frame this is “data-driven” vs “data-informed.” Data-driven investors ask questions about data first, while data-informed or data-second investors look at the data, but it is second to their intuition and common sense. Wikipedia has definitions for data-based (or data-driven) vs data-informed decision making as it applies to education. I believe data-informed to be a much better approach. In doing a bit of research, I stumbled on this gem – a couple years ago, a test showed that combination AI and human “data-informed” chess players regularly beat the pure data-driven players. Andrew Chen made a nice post about how data-driven decision making can lead to local maximums and weak decision making. I choose to modify the labels to data-first vs data-second because the data acts as either a first or second pass filter.
In the VC world – data-second investors will always beat data-first investors.