Why is Data-Driven Decision Making important?

We’re bombarded with it everywhere! The term “big data” has become in hip recently, and there’s a reason for it, of course! By understanding the value of the digital tools available to you at the tip of your fingers combined with business intelligence, you will be able to achieve fantastic commercial success, growth, and evolution.

Implementing the proper reporting tools and understanding how to analyze and measure data accurately is crucial to make those data-driven decisions that will make your business succeed. And while it is OKAY to follow your gut from time to time when running your business… using your intuition only is NOT going to cut it, in fact, this may become detrimental in the pursuit of success.

Nowadays, most successful businesses make the majority of their decisions based on metrics and figures that are aligned with the objectives of their company. These backed up and informed decisions are the core to management reports and the overall business operation.

What is data-driven decision making?

Data-driven decision making (DDDM) is the process of collecting data to inform your decision-making process in order to validate an action plan before even committing to it. DDDM analyses patterns to formulate strategies to benefit your business in multiple areas of its operation.

Essentially, the goal of data-driven decision making is leading you to primary objectives by powering accurate and verified data instead of just tossing the dice and waiting for some good luck to rub on it.

To extract, compile, format and analyze factual and precise data you will need the deep routed technical expertise that only a team of data analysts can provide. In fact, Data Science was born from all these developments. In case you’re unsure of what Data Science is, Data Science is a new profession that converts raw data into intelligible data-driven business decisions.

?What are the benefits of data-driven decision making?

Steve Jobs used the remarkable quote “Have the courage to follow your heart and intuition; they somehow already know what you want to become.” These words are beautiful words of wisdom, however, the term intuition has been romanticized in modern times, and since we are not Steve Jobs, we need to rely on solid data.

Some of the great benefits of data decision making are:

1. Making dauntless decisions:

a. Collecting and analyzing data makes it easier to make a confident business decision over time.

b. Data has multiple roles, which allows you to understand the impact that a decision will have on your business.

c. Since data is logical and concrete it deletes any subjectivity from your decisions which allows you to confidently take apart on a strategy without worrying you’ve made a wrong decision.

2. Becoming proactive:

Data is like storytelling; it will narrate a story and you will become reactionary to it. This will allow you to take charge and become more proactive by identifying business opportunities or risks for example.

3. Cost savings

According to recent studies, nearly 48.4 firms report that they are achieving measurable results from their investments in big data. The firms reported that they are using big data to cut back on expenses and 49% of them have seen value from their projects, in other words, big data is already being used to improve operational efficiency.