“Big data” is maybe one of today’s most used terms. But, exactly, what is “big data”? The term is most commonly used to describe the size and complexity of data. If a huge amount of information has been retrieved from a little amount of content, it could be labelled “big data.” So, what exactly does “data-driven” imply? This word refers to a decision-making process that entails gathering data, extracting patterns and facts from that data, and using those facts to draw conclusions that impact decision-making.
What is Data Driven Decision Making?
The use of facts, measurements, and data to influence strategic business decisions that correspond with your aims, objectives, and projects is known as data-driven decision-making (DDDM). When companies see the full value of their data, everyone who, whether a business analyst, a sales manager, or a human resource professional, is empowered to make better data-driven decisions making on a daily basis. This, however, cannot be accomplished just by selecting the right analytical tool to uncover the next strategic opportunity.
Why Data-Driven Decision Making?
Make data-driven decision-making the norm in your company by cultivating a culture that values critical thinking and curiosity. People at all levels engage data-driven decisions, and they hone their data abilities via practise and application. This necessitates a self-service paradigm, in which users can access the data they desire while maintaining security and governance. It also necessitates proficiency, necessitating data training and development options for personnel. Finally, executive advocacy and a community that supports and makes data-driven decisions will inspire others to follow suit.
Establishing these key competencies will foster data driven decision making at all levels of the organisation, allowing business units to query and explore information on a regular basis in order to uncover strong information that improves action.
The importance of the Data Driven Decision Making?
Today, every sector aspires to be data-driven. No corporation, group, or organisation says, “Let’s ignore the data and rely on our instincts alone to make sound decisions.” Most professionals are aware that, among other things, data bias and erroneous assumptions can impair judgement and contribute to bad decision making. Despite this, 58 percent of
respondents in a recent study claimed that their organisations make at least half of their routine business choices based on gut feel or intuition rather than data.
The amount of data collected has never been higher, but it has also never been more complicated. This makes data decision and analysis tough for businesses. According to New Vantage Partners, 98.6 percent of executives say their company strives to have a data-driven decision, but only 32.4 percent say they have succeeded. According to a 2018 IDC report, businesses have spent trillions of dollars to update their operations, but 70% of these programs fail because they prioritise technological investments over developing a data culture to support them.
How to Proceed with Data Driven Decision Making?
So, how can you make sure you’re making data-driven decisions that are free of prejudice and centred on clear questions that will help your company succeed? Experts must achieve the following in order to properly use data:
Be aware of your mission.
Locate data sources.
Data should be cleaned and organised.
Carry out statistical analysis.