Immersive technologies and decision-making: the role of information

How are decisions made?

But how exactly are decisions made? How do we decide which clothes to wear or which house to buy? Decision making is defined as the process of making choices by identifying a decision, gathering information, weighing the various options, and selecting the most appropriate. Research has shown that our human brains go through a systematic process, outlined below.

The decision-making process can be broken down into 5 main stages:  

1. Recognition of a need: The first step of the decision-making process is acknowledging that there is a need or problem to solve. This can be sparked by a variety of factors, such as a change in personal or business circumstances, a new product or service, or a specific desire.
2. Information gathering: Once it is determined that a decision must be made, we will start searching for information to assist with the decision making. This can involve online research, analysing proprietary data, or asking around, depending on the context.
3. Information analysis (evaluation of options): In this stage, one will compare the alternatives available to them and evaluate which one is best suited for their needs. In real estate for example, factors such as price, location, and design will be considered.
4. Decision & action: Once we have evaluated our options, we will then make the corresponding decision and act accordingly.
5. Review: An often overlooked element is the evaluation of the decision, where we analyse if we are satisfied with our decision. This can influence future behaviour.

As we will see below, immersive technologies can enhance steps 2 to 4 of the process, by offering better visualisation and understanding of information.

The role of information in decision making

Within the decision making process, information stands out as a key pillar. Without data, our brain has to rely on guessing or gut instinct. Information therefore plays a critical role in decision making.

Consumers will search for detailed information on products and services before making a decision to purchase. Whether it is size, calorific content or provenance, most consumers take product specific information into consideration. This then influences their choice.

In the business world it is no different. Engineers and designers require information to develop systems or projects. Urban planners have to deal with enormous amounts of data. And the average day of a CEO is filled with back to back decisions.

Accurate and comprehensive information is therefore critical, and the main factor in influencing decision making. It increases the comfort and decreases the perceived risk of making a certain decision.

Understanding the dynamics of information in decision-making

According to CEOpedia, the quantity and quality of information affects the efficiency and rationality of decisions.

Quality of Information

High quality information is defined as being accurate, complete, relevant, and timely. It is the backbone of effective decision-making, providing the required insights in order to make informed choices. In the healthcare sector for example, the accuracy and timeliness of patient data are crucial. A doctor’s ability to correctly diagnose a patient relies on having comprehensive and up-to-date patient information. This could mean the difference between a successful treatment and a negative outcome.

Accessibility of Information

Having information at one's fingertips can dramatically improve operational efficiency and strategic agility. In the retail industry, for example, real-time access to inventory data helps businesses manage stock levels effectively, responding swiftly to changes in consumer demand. This accessibility allows for quick decisions that optimise inventory turnover and reduce costs associated with overstocking or stockouts.

Understandability of Information

The complexity of information and how it is presented can greatly affect decision outcomes, especially in fields that showcase information in a specific way. In the real estate industry, developers are faced with the challenge of accurately communicating what a future property will look like. The majority of people lack spatial awareness and the ability to mentally visualise 3D spaces.

How immersive technologies improve information delivery

Immersive technologies enhance information by increasing the quality and completeness of information. This is achieved through visualisation, simulation and presence.

Traditionally, information was delivered online via images, text, and occasionally. What immersive technologies offer is a new way of packaging and delivering information, by involving the user consumer of information in its delivery.

This is achieved by:

1. increasing the completeness of information, for example by allowing complete visualisation of objects (consumer goods, machines), processes (traffic flows, warehouse logistics), and environments (real estate, touristic destinations, etc…)
2. Increasing the quality & accuracy of information. Digital twins, from single machines to entire urban areas, are an exact copy of the real thing, which enables decision makers to analyse behaviours and data in a virtual setting.
3. Decreasing risk associated with a decision by increasing decision comfort and decision confidence. Consumers of information feel more confident and comfortable making decisions when they have better and more abundant information to make this decision
4. Increasing understandability. Our brains work visually. Data presented in a 3D manner is much easier for our brains to process and assimilate. Going beyond visualisation, the interactive aspect of immersive technologies turbocharges comprehension by allowing users to manipulate information. Engaging directly with a 3D object in a virtual environment has been shown to increase understanding and collaboration.

The impact of immersive technologies in real estate

In real estate, academic studies have shown that VR tours increase the chance of physical viewings. Prospective property buyers feel more confident in booking a viewing on the right properties. They actually book fewer viewings, since the virtual tours allow them to better shortlist which properties are most suitable. This is a concrete example of how immersive technologies lead to better decision making.

Bridging the gap between information and action

By leveraging the power of immersive technologies, organisations and individuals can bridge the gap between information and action. These technologies enable users to better comprehend and internalise data, leading to more informed and confident decision-making. Moreover, the interactive and intuitive nature of immersive experiences can inspire greater engagement, collaboration, and knowledge retention, ultimately driving more effective and impactful decisions.

Conclusion

The role of information in decision-making is pivotal. As we navigate the rapidly evolving of modern world, the adoption of advanced technologies to handle information becomes increasingly important. Immersive technologies not only enhance the way information is consumed and understood but also empower decision-makers by improving the quality, accessibility, and interpretability of data. As businesses look toward future growth and development, the adoption of these technologies could well be a defining factor in their success.

For developers and yacht builders interested in leveraging these technologies for their off-plan properties, we encourage you to reach out to us. Our team specialises in creating customised immersive experiences that enhances your customer’s decision making. The future is here, and it is immersive.