How data velocity changes decisions: The role of information access speed
Miguel Espinosa, Hyunjin Kim, Sergio PradaAbstract
Research Summary
Recent technological advancements have enabled more data‐driven decision‐making across firms. While prior literature highlights the value of using more data, there is less insight on the impact of information speed, particularly how quickly decision‐makers can access it. We study how faster information access influences how decision‐makers acquire information and make decisions, using data from healthcare. We examine a technology that visually displayed when test results became available, accelerating information access for 64,152 decisions by 387 physicians. Faster access allowed decision‐makers to gather less but more targeted information, resolving uncertainty earlier and speeding up decisions, while ultimately improving decision outcomes by supporting more effective information processing. Our findings show that investing in data velocity can yield significant benefits through both faster and better decisions.
Managerial Summary
Our research shows that the speed at which decision‐makers access information can be just as important as the amount of data available. Studying the introduction of a real‐time dashboard in a hospital emergency department, we find that simply reducing delays in seeing lab results‐without changing the information itself‐led physicians to order fewer and more targeted tests (cutting charges by 25%), reduce patient length of stay by 13% (about 75 minutes), and improve outcomes, with lower hospitalization rates and higher patient satisfaction. The biggest gains occurred under high workload and in less common cases, where early signals are especially valuable. The key insight for managers is that faster information access does not just accelerate decisions; it improves how decisions are made by enabling more focused information gathering and better use of early signals. Investing in tools that reduce friction in accessing data can therefore increase efficiency and quality simultaneously, creating advantage not just through speed, but through better decision‐making.