Strategy question

How do you evaluate data vendors based on a decision tree model?

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What this question tests

Structured vendor evaluation, using a decision framework to weigh multiple criteria under uncertainty.

How to approach it

  1. Clarify what data vendor is being evaluated for, e.g. cost, data quality, coverage, or integration ease.
  2. Define the top level decision criteria, data accuracy, coverage breadth, cost per record, and integration or support quality.
  3. Build the decision tree, starting with a hard gate like minimum accuracy threshold, then branching into cost versus coverage tradeoffs.
  4. Weight each branch by business priority, e.g. accuracy weighted highest if the data feeds a customer-facing feature.
  5. Score each vendor against the tree and compare, using a pilot or sample dataset to validate accuracy claims before committing.
  6. Define a decision rule, e.g. select the vendor with the highest weighted score that also passes the minimum accuracy gate.

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