The Importance of Data Driven Decision Making
In our previous article, we highlighted that with data driven decision making (DDDM), your organisation could grow and evolve, making market adaptation a breeze. As the digital world is in a constant state of flux, organisations like yours would need to leverage data in order to make more informed and powerful data-driven business.
Consistency and continual growth are key when it comes to extracting data in decision: data that will help your company create business opportunities and generate revenue through actionable insights, predicting future trends and optimising existing operational efforts. Substantially increasing the adeptness of your organisation, allowing room for growth and evolution, over time. Today’s digital era is in a constant state of flux whereby leveraging data would help you move with the ever-changing landscape better by helping you make more informed and powerful data driven business decisions.
Online data visualisation is important in decision making as data driven business decisions can either make or break companies. A study by the MIT Center for Digital Business discovered that companies primarily driven by data benefited from a 4% increase in productivity and 6% in profits. Companies that approach decision making collaboratively tend to treat information as a real asset more than companies with other, more ambiguous approaches.
Here’s a summary of the ten tips and takeaways for an enhanced data driven decision making strategy:
- Avoiding biases to make clearer decisions – As a human error, it is possible to see data that isn’t there instead of acknowledging ones that are right in front of us. Democratising data empowers all people, regardless of their technical skills, to access it and help make informed decisions. Better understanding of data results in more credible feedback. Thus, it is evident that organisations should reduce biases and rely on numbers, instead.
- Knowing your objectives – Companies should define their objectives before beginning their analysis to effectively generate useful data from teams. Clear identification of Key Performance Indicators (KPIs) can prevent unnecessary distractions.
- The sooner, the better – The right data must be used to address the right questions. Even for smaller businesses, data should be collected as soon as day one to properly manage the tidal waves of data that will be collected in the long run.
- The unresolved questions – With your strategy and goals in place, there are sure to be questions that need to be resolved. You can leverage the right data to save time and money by asking the right data analysis questions to help teams focus.
- Solving these questions – Focusing on your ideal data will help you answer these questions effectively.
- Understanding your data to utilise it – Read through collected data to extract meaningful insights and analytical reports that will lead you to make consolidated data driven decisions. User feedback is a useful tool that will lead to more in-depth analyses in identifying customer experiences and actionable insights.
- Revisiting and reevaluating if necessary – Stepping back to rethink your decisions can prevent unintentionally biases and ensures that you’re always on the right metrics to aid the best decisions possible.
- Present the data in a meaningful way – With the help of a great data visualisation software and a powerful online dashboard, you can tell your data story which will assist you and your team to make the most effective data driven business decisions.
- Making decisions using measurable goals – Apply the findings to your business decisions but make sure that your decisions are aligned with the company’s mission and vision.
- Evolving your data-driven business decisions as you go – Don’t stop examining, analysing and questioning your data driven decisions: refreshing and evolving your goals in the long run as the business landscape will change around you.
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