Experience vs. Memory
This insight has profound implications for economics, public policy, and our self-awareness, which can help BI analysts avoid bias.
Kahneman and his long-time thinking partner, Amos Tversky, famously changed how humans think about their own cognition and are known for popularizing the concepts associated with behavioral economics and our awareness and understanding of our thought processes, or metacognition.
Kahneman's examples may not seem relevant to business or management, but a decision-maker's memory of the outcome of previous decisions may inappropriately cloud their recall of the process or certain aspects of the implementation. This may result in a manager believing deeply that a particular analytic method or other approach is useless because "it did not work last time". This natural human failure to correctly recall an experience and rely on memory, what Tversky and Kahneman call simply "the story we tell ourselves about the experience", can result in faulty decision-making.
Source: Daniel Kahneman, https://www.ted.com/talks/daniel_kahneman_the_riddle_of_experience_vs_memory#t-449268
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.