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Cognitive Biases

Magic vs Technology

 , updated on December 29, 2015
Any sufficiently advanced technology is indistinguishable from magic.
~ Arthur C. Clarke
There's a known tendency for businesses to view their technology implementations as magic. In other words, technology is often viewed as a black box that is understood in terms of its inputs and outputs. It is common for technology that is not understood to be described as an algorithm or another sufficiently advanced-sounding term.
Overview: Magic Technology
TypeBusiness Risk
DefinitionTechnology that is viewed as magic whereby an organization understands what it does but not how it works.
ValueViewing technology as a black box can be a useful abstraction that hides unneeded details behind a simple interface. If you rent a car you may not care much about the engine, just that the car gets you where you need to go.
RisksBasing decisions on superficial information such as sales pitches tends to lead to failed technology projects.
Lack of due diligence and control.
Non-compliance to regulations.
Black box technology implementations that work well under normal market conditions but have erratic or extreme responses to exceptional conditions.
Related ConceptsAlgorithms
Artificial Intelligence
Black Box

Cognitive Biases

This is the complete list of articles we have written about cognitive biases.
Ambiguity Effect
Backfire Effect
Base Rate
Circular Reasoning
Cognitive Bias
Cognitive Dissonance
Complexity Bias
Crab Mentality
Creeping Normality
Curse Of Knowledge
Decoy Effect
False Analogy
False Hope
Fear Of Youth
Golden Hammer
Halo Effect
Hindsight Bias
Negativity Bias
Optimism Bias
Peak-End Rule
Positive Bias
Sour Grapes
Survivorship Bias
Us vs Them
Victim Mentality
Wishful Thinking
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