Let Data Drive Your Decision-Making

Data driven decision making is the process in which data is used to inform business decisions.?This approach has become increasingly popular in recent years as businesses have become more reliant on data and analytics to drive their operations; as opposed to the 'gut' feel of experienced and knowledgeable people.

There are many benefits to data driven decision making, including improved accuracy, efficiency, and transparency. Despite these advantages, there are still a lot of organisations who haven’t integrated data analysis into the core of their business processes.

If your organisation is one of them, here’s why and how you can make data analysis central in all of your business decisions.?

Why Make Data Driven Decisions?

According to an estimate by the world Economic Forum, in 2025 the world will be producing 450+ exabytes of data each day! What’s more, this is only going to increase as we become more reliant on technology and connected devices.

This presents a huge opportunity for businesses to gain insights that can help them improve their operations and business models.?

This is because these insights lead to:?

• Improved efficiency: Data can be used to identify areas of inefficiency and wastage. This information can then be used to make process improvements that result in cost savings
• Better decision making: Data can help you to gain an in-depth understanding of your customers and to make decisions that are based on evidence rather than gut feeling
• Increased transparency: Data driven decision making is a more transparent process as it relies on facts and figures rather than subjective opinions
• Leveraging AI: With the help of data, businesses can develop algorithms that allow them to automate decision making. This is especially useful for organisations that have to deal with large volumes of data

How to Start Making Data Driven Decisions?

To take advantage of all the data the world is currently producing, businesses need to be able to effectively analyse and use it. This can be a challenge, but here are some tips to help you get started.

• Invest in data analysis: Data analysis can be a resource intensive process, so it’s important to make sure you have the right tools and infrastructure in place; and of course the right partners who can bring leading edge thinking into the business
• Develop a data driven culture: Embedding data into the DNA of your organisation is vital for success. This means creating a culture where data is used to inform (not make) all decisions, from strategic to operational
• Re-engineer your business decisions: Once you have data available that's tailored for your business, it’s time to start using it! This means re-engineering your current business decision making processes, platforms and apps to be able to harness data
• Let AI take the lead: As mentioned earlier, artificial intelligence can be used to automate decision making. But remember, the key to successful AI implementation in business decisions is knowing when and how much to use it

Takeaway?

Making data driven decisions has become increasingly important in today's business landscape. With the right tools and infrastructure in place, as well as a data driven culture within your organisation, you too can make data driven decisions that will help improve your bottom line.?

To find out how teams within XP2 are using data to drive better employee and consumer experiences to drive business optimisation and increased revenues, then get in touch at XP2.Group