How Data Driven Decisions Are Fast Changing The Way We Do Business
Verifiable data is the key to smart business governance backed by data driven decisions. Today, most businesses are relying on the fruitfulness of data-driven approach, accumulation of high-quality data, and the effectiveness of data interpretation and analysis.
Gone are the days when managers handling business operations had to bank upon reports from the IT department to get access to data-backed information. No longer do project managers and business decision makers rely on complicated ad-hoc reports that were once turned in at periodic intervals. Yes, with a variety of business intelligence tools in the offing, business managers are readily organizing their customized dashboards for displaying all kinds of data that’s relevant to their routine functioning. These days, easy data mining and visualizing means are allowing business executives, even with little or no knowledge of information technology, to use the smartest data analytics tools and make the best data-driven decisions.
Here, we take a look at how data driven decisions are changing the way we do business and gain competitive advantages.
Higher Productivity Rates and Bottom Line Figures
Are you still looking for effective ways of gaining higher productivity rates and profit figures? The results of a study conducted by the MIT Center for Digital Business concludes that the organizations that are guided by data-based decisions stand a chance to enjoy 6% higher profits and 4% higher productivity rates. But then, the integration and combining together of colossal amounts of data (to acquire real-time actionable data for making business decisions) is not as easy as it seems. For instance, you may have errors creeping into complicated data analytics processes, thereby resulting in serious issues. The idea is to use data effectively to create more business value and enjoy the competitive edge.
Smarter Decisions in Comparison to Rivals
In the competitive scenario that most businesses are operating in currently, it has become essential to derive data-driven insights for making real-time, smarter, factual, and better decisions. This in turn has increased the demand and growth of big data platforms and tools. Organizations leading from the front are using structured / unstructured data, machine and online data, mobile data, etc. for supplementing organizational data. The data banks within their reach are providing a firm and solid foundation for both predictive and statistical data-backed views and decisions for providing more lucrative business results. With more and more relevant data being generated by big data, many fundamental changes are being brought about in the ways in which we do business, operate and compete. Alongside, the latest digital and technology channels are offering advanced acquisition and delivery modes for more accurate and quicker data analysis and business decisions.
Better Understanding of Business Patterns
Like human capital, hard assets and other factors of production, data has become an integral part of all business functions and industry verticals. Large pools of data are being accessed and analyzed for discerning patterns and trends before making critical as well as day-to-day decisions. A better understanding of business patterns is leading to higher-quality products and services and eliminating the wastage of resources, and in more ways than one.
Relevance to All
As per another study report by McKinsey & Company’s Business Technology Office and McKinsey Global Institute (MGI), the massive deluge of data being generated, stored and regularly mined for gaining insights is not relevant to business houses alone; nowadays, data driven decisions are also bringing positive changes in consumer behavior and government related operations.
Transparent Information Unlocking Immense Value
Being transparent, big data information unlocks significant value and can be transferred to different locations. So, instead of banking on paper-based data that is inaccessible or not searchable via networks, leading companies are outperforming peers and new entrants by leveraging the many advantages of data-driven strategies. Such strategies are helping businesses (in all sectors) compete, innovate, and capture value. Big data decisions are also paving the way for new growth opportunities and innovative business categories based on aggregating and analyzing industry data.
With data related to buyers and suppliers, products and services, consumer preferences, intent, etc. being analyzed like never before, forward-thinking leaders are using information flows for steering their organizations onwards. Also, digitized transactional data is being collected for aiding more detailed and accurate performance information for boosting performance metrics.
Data driven decisions and sophisticated analytics are minimizing risks, improving decision-making, and showcasing valuable insights for the development of next-generation products and services. Just like customer-facing companies that have been using data for segmenting and targeting customers for long, most retailers, wholesalers, manufacturers, government agencies, service providers and other business owners are using data driven decisions for changing the way in which they do business.
Are you ready to jump on to the bandwagon?