Why Your Small Business Needs Data-Based Decision-Making?
In just about every area of life and the world around us, we are increasingly generating and relying on large volumes of data, and one of the most valuable uses organisations are finding for it is to help them make better, smarter, and more informed decisions.
This happens all the time - for example, identifying markets where our products and/or services can be popular to target sales resources or to review LinkedIn profiles of job applications to make better hiring decisions. However, the most exciting applications of data are automated to be used to solve massive problems that organisations are facing.
For instance, UPS was able to make huge savings in wage and fuel costs when it leveraged artificial intelligence along with location data and traffic information to route its network of delivery trucks. Netflix gathers insights about its users purely based on how they use its services, what makes them switch off, and what content they enjoy. This happens automatically, without any form of human intervention.
What is data-based decision-making?
Data-based decision-making is the collective process of leveraging data to inform your decision-making process and thereafter validate a possible course of action before you commit to it.
In the world of business, it can be seen in different forms, such as:
Collect survey responses to identify features, products, and services their potential customers would like.
Conduct user testing to find out how customers are likely to use products and/or services and to further identify any potential issues prior to a full release.
Analyse shifts in demographic data to ascertain business threats or opportunities.
Launch new products or services in a test market to "test the waters" and discover how a product or service might perform in the market.
Benefits of data-based decision-making
You’ll Make More Confident Decisions: Once you start gathering and analysing data, you will find it easier to reach a unanimous and confident decision about virtually every business challenge. This is primarily because data is concrete and logical in a way that gut, intuition, and instinct simply aren't. Data helps you gain confidence by eliminating the subjective elements from your business decisions. This, in turn, helps you commit completely to a specific strategy or vision.
You’ll Become More Proactive: When you first implement a data-based decision-making process, it is likely to be reactionary in nature. This is primarily because the data communicates a story, which you and your business must then react to. In addition to this, you can leverage data proactively - for example, by detecting threats before they grow too serious or by identifying business opportunities before your competition does.
Find out how your organisation can become more data-driven and thrive. Call us at C.I.G Consultants to leverage the power of data for professional and organisational success.