“Why make data-based decisions when my gut tells me something else?” A 20th-century business owner would have asked this question when people almost considered intuition sacred. However, things have changed today. More entrepreneurs realize the meaning of data-driven decision-making (DDDM) for enhanced productivity and increased profitability. Companies should rely more upon analytics to ensure their policies are backed by smartly-collected data. We live in an age of information where statistics support every decision made by multinational organizations. Hence, we’ll explain some methods to utilize your data wisely and become better at decision-making endeavors. Additionally you can check out this video tutorial to learn the importance of data from one of the best Data Science Courses available online.
Updating your DDDM strategy
There’s data-driven decision-making, and then we have the illusion of data-based policymaking. Are you living in an illusion that your data support your decisions? Companies indicate that 50% of their data has been used in DDDM on average. It means organizations don’t use their information effectively for decision-making procedures. That’s why startups need to start using data shrewdly to ascertain their policies are supported by something more reliable than “gut feelings.” So, how do you ensure you make better decisions with the gathered-from-customers information? Let’s discuss some strategies to hone your DDDM process. Here’s how you make well-informed decisions based on information:
- Hire some experts
Your company’s DDDM journey begins with employing the services of analytics experts. Distance learning enables students to pursue higher education flexibly. Several institutions are offering online degrees in data sciences. You can hire someone who has attained an online Masters in analytics for rectifying your decision-making process. These professionals turn raw data into meaningful insights that help business owners make strategic decisions. So, bring some data experts on board.
- Consider your objectives
You can’t decide anything without considering your objectives and priorities. So, look at your goals. What do you want to improve in your company? You may intend to bolster the marketing services at your organization or enhance online traffic to your website. Defining your objectives can enable you to use your data wisely. Ensure the information you’ve gathered aligns with business objectives to make this data more useful. That’s how your company becomes better at data-driven decisions.
- Find unanswered questions
After defining your goals, it’s time to ask relevant questions. Like how to motivate yourself to start a business? It’ll help you assess your data with specified questions in mind and accelerate the decision-making process. An excellent method involves prioritizing your data. Filter through heavy amounts of data and focus only on valuable information. This information allows you to answer unresolved questions.
- Make data more accessible
Several companies collect customers’ information. But is this data accessible to your workers? Now, your decision-making procedure won’t remain successful unless every relevant person has access to important information. This practice will influence your team’s ability to interpret this data correctly in a timely fashion. If the data doesn’t seem appealing to employees, the experts mentioned above can help explain it to them. Moreover, you must make this data easily readable for your workers. And must use computer security policy to ensure that your data is secure.
- Make data readable
Which is the more straightforward method to read data? A color-coded graph or black-and-white statistics? Most people find the first method more readable. However, some may still be using the second one. Learn that most of your employees aren’t “numbers people” (unless they’re all statisticians). So, you should present the relevant information in intelligible formats. Create a company culture where all the data is represented through readable layouts.
- Invest in technology
Many companies overlook the importance of finding the right information management platform to make better data-based decisions. You can enhance your data’s readability by using a platform that doesn’t require SQL programming. It should remain usable by frontline workers who can easily grasp complex information to make better decisions. Thus, it can make your data easier to digest by the company’s marketing team members, thereby leading to satisfactory outcomes.
- Share your results
Do you share the results of your data-based research with everyone? Remember our discussions about making data accessible to relevant employees. After manipulating data and drawing results, it’s important to share these outcomes with managers and employees. Besides sharing your findings, you must also receive the team’s feedback. Measure your performance to ensure your results are accurate.
- Revise your deductions
Remember to reassess your reports and reevaluate your analyses. Continue revising the outcomes periodically to ensure no mistakes in your conclusions. This practice also helps you remove any inaccuracy in your assessments, thereby enhancing the authenticity of your research. Also, you must present data visually (as we’ve already explained) so more people can read it and point out inaccuracies in your assessments. This practice enables decision-makers to base their schemes on facts.
How many companies still involve intuition in serious decision-making procedures? Experts interviewed many people, and 58% of respondents admitted their companies based 50% of their decisions on gut feelings or previous experiences. So, how can you improve yourself at DDDM? We suggest defining your objectives and starting to collect meaningful information. Then organize this information and solve unanswered questions with your data. Ensure you’ve spotted trends/patterns to better realize this data. Finally, present this data in a manner understandable by everyone to include it in the decision-making process. That’s how you can make better decisions with the help of correct information to mark your success.