Effective Data-driven Decision-Making (DDDM)
It is much better to make organizational decisions based on real data, facts, and metrics rather than observation or intuition in order to align company goals, objectives, and initiatives. Don’t you agree? Organizations must realize the true value of data and what it means for everybody in the company, including stakeholders and partners.
To make the right data entry, proper analysis, and strategic business decisions you need to implement a data-driven approach company-wide. Whether you are a small start-up, mid-size company, or a giant holding – every piece of information would be valuable for improving a certain process, planning a product launch, or pivoting in case of emergency/disaster.
In this article, we wanted to lay down the foundational value that data-driven decision-making brings to every business.
Positives of data-driven decision-making
One way of looking at DDDM is that it brings an exponential potential for improvement and growth. Additionally, it unlocks other abilities of the human capital and encourages them to collect, use and trust data more than before. Let’s look at these 6 beneficial points of data-driven decision-making:
Creates a culture of Critical thinking
People at every level can contribute to data collection
Talking openly about data
Maintaining a balance in the organization
Exposes employees to learning data skills
Proving the importance of DDDM
You would be amazed by the fact how much data is lost due to pure laziness, overlooking, or an individual’s choice to simply not register the information on time. Here are 7 critical points where we cover the level of urgency that data-driven decision-making has in one organization.
Making data the norm – start with making sure that you establish a ground rule that data collection needs to be at the heart of every business operation. By making sure that data is being collected you will maintain accurate and relevant real data to lean on when making business decisions. The outcomes from these decisions then will be aligned with your goals and overall data culture.
Ensuring continual business growth – the very reason why data has to be the leading force behind every decision is that consistent growth can be achieved thru data-driven decisions. Discovering key insides and acting on them is what empowers organizations. By having actionable insights thanks to real-time data analysis, you can reach continual progress and growth.
Higher productivity leads to higher profit – knowledge, and innovation go hand in hand. Touching again on the end goal (profit margin) – higher productivity of employees comes from data connectivity and reporting. By connecting the dots where the data touchpoints overlap between the different departments, you would be able to boost productivity as well as connectivity.
Enhanced communication across the organization – if you are in a position where you communicate information between departments be sure to accommodate the right tools so data transfer would be a breeze. Facilitate frequent feedback to drive even more data into your pipeline where in turn no polarized decisions will be made.
Unveiling new business opportunities – structured data gives you a glimpse of what your next business step could be. Or where you have a missed opportunity, a gap, a problem of some sort. Do not underestimate the power of data that you have in your hands. It can point you in the right direction most of the time.
Unmatched adaptivity – data shows you information about trends on the market. By collecting as much data as you possibly can – you would be in a position where you possess unbending adaptivity. This will position you way ahead of your competition.
Leading with an example – all leaders have to be encouraged to support data-driven decisions and advocate for them. Change has to come from above with the help of practical guides on data collection, prime examples of why certain sets of data matter, and of course a safe place to store it.
Your data matters the most
Start collecting every single piece of information across all channels and departments. There is great importance in knowing what is going on in your company first and then and only then to look outside for external influence. Because you cannot make the whole world care about you, it is crucial to retrieve data from inside the company to make decisions for successful operations. Every company has a sales and finance department, so start there. Then recruit the marketing and human resources teams to have a more robust overview of the processes in the company.
There is no doubt that having valuable information is a key that can unlock many doors where you could find endless opportunities. But what is most important is what you do with all the collected data sitting at your disposal. Be smart with your datasets and be mindful when jumping to conclusions. Data-driven decisions will lead you to success when you have the structure built for data collection. Start today with the help of a data engineer from Panaton.