The term decision trees is particularly at home in the fields of artificial intelligence, big data, smart data and digital transformation. Decision trees are a simple and clear tool for visualising decisions with many possibilities. They are very popular when companies want to find out from large amounts of data how they can best act or optimise certain processes.
A decision tree works like a real tree diagram: at the beginning there is a question or a criterion. Depending on how you answer it, the tree branches out further. It goes step by step through various decisions until a clear recommendation or result is reached at the end.
An example: An online shop wants to know whether a customer buys a certain product. The decision tree first checks whether the customer has visited the product page. If this is the case, the tree then asks whether the customer has placed the product in the shopping basket. Depending on the answer, the decision tree continues until it reaches an assessment of the probability of purchase.
In practice, decision trees are comprehensible tools for making smart decisions from data.
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