Using Data Driven Decision Making to Fuel Growth
Posted by groupfio on January 3rd, 2022
2021’s inaugural issue of The Economist magazine boldly – and rightly – declared that data, rather than oil, was the world’s most valuable commodity. The world is quite simply now run with data. The content you read, the videos you watch, the updates you post and the products you buy; by 2022, new information generated per second for every human being will reach 1.7 megabytes. Considering there are over 7.7 billion people on the planet, the amount of new information is equivalent to more than 25,000 hour-long videos. Per second!
All of our digital behavior is recorded. But for many companies, this data sits in one dashboard here and another database there, making it incredibly difficult to be used in a way that yields any results. The good news is that instead of letting your data degrade, you can use it for your business’ growth strategy to make better decisions.To make data driven decisions, you need to unsilo all that data, and unify it on one comprehensive platform that gives you a full picture of your customers.
By leveraging the wealth of digital insights available at your fingertips and embracing the power of business intelligence, you can make informed decisions with confidence – the kind that will lead to commercial growth, evolution, and a healthier bottom line.
What Is Data-Driven Decision Making (DDDM)?
We read about it everywhere. The term ‘big data’ alone has become a buzzword in recent times – and for good reason.
Data driven decision making (DDDM) is the process of using data to make informed and verified decisions. Modern analytics tools such as Group FiO’s Insight Marketing Platform provide interactive dashboards that help people to overcome biases and make the best managerial rulings that are aligned with business strategies.
And by implementing a data platform that offers the right data collecting and reporting tools and understanding how to analyze as well as to measure your data accurately, you will be able to make the kind of data driven decisions that will drive your business forward. Of course, this sounds incredible in theory.
But in practice, even if you have access to the world’s greatest data, it’s possible to make decisions that disregard tangible insight, going with your gut instead. In most cases, this can prove detrimental to the business.Fundamentally, data driven decision making means working towards key business goals by leveraging verified, analyzed data rather than merely shooting in the dark.
While sometimes it’s okay to follow your instincts, the vast majority of your business-based decisions should be backed by razor-sharp metrics, facts, figures, or insights related to your aims, goals, or initiatives that can ensure a stable backbone to your management reports, business operations, and marketing strategies. Data based decision making will propel your business to new heights while making it more adaptable to an ever-changing commercial landscape. It should be at the heart of all of your strategies, activities, and operations.
The Role of Data Democratization in DDDM
Until recently, pairing data analysis and decision making was a tall order that could only be accomplished by people with advanced data science skills. However, now that two essential factors—the proliferation of data sources and the adequate data processing technology—have fallen into place, data democratization has put data-driven decision making on every executive’s agenda.
Essentially, data democratization means having the right tools for mining, visualizing, and analyzing data—all with minimum adoption barriers for non-tech users. After decades of data analysis being confined to specialized IT departments, today’s data democratization heralds a breakthrough that eliminates the need for the gatekeepers of these valuable insights. Comprehensive Customer Data Platforms like FiO’s Insight Marketing Platform can bring democratization to decision making by opening crucial data and making it transparent across an organization.Advances in data virtualization, master data management, and cloud computing are all responsible for this paradigm shift. The previous barriers to data-driven decision making—data quality, fragmentation by departmental silos, integration of multiple sources, complex dealings with unstructured and semi-structured data—are now giving way.
Taking advantage of data democratization has never been more valuable. Finding the right way to collect and deploy your current data, along with adding the benefits of first and zero party data, provide unprecedented insight into your customers choices, decision making process, and preferred touchpoints through your brand ecosystem.
Why Data Driven Decision Making Is Important
Picture this: you get into your car in the morning and notice your gas tank is almost empty. You pull into the closest gas station and fill up your car for .73 a gallon. The problem is solved – until you drive a mile further and realize another gas station’s price is .22 a gallon. You’re mad that you could have saved a few bucks if only you’d known that a better deal was within your reach.
This is a highly simplified version of what data-driven decision making can do and why it’s important.
The decisions you make in your business are probably more important, with more money at stake and more details involved. Still, it’s not hard to see that making decisions based on facts and information can deliver better results than going with your gut.
Data is critical for growth in any organization, especially in the age of digital technology and instant gratification. Because we’re in a state of constant evolution, demographics, trends, and other important factors can change unexpectedly. Data helps us avoid figuring out these shifts the hard way and instead gives us insight into a changing landscape so we can respond accordingly.
There are a wealth of reasons that using data to make decisions is a pursuit every modern business should place at the heart of their culture:
Continual Organizational Growth
The core importance of data in decisions lies in consistency and continual growth. Data-driven decision making empowers companies to hone in on key insights based on a multitude of functions, operations, and departmental activities.
One data decision after another actioned with consistency will empower you to set actionable benchmarks that result in continual progress and growth – the key ingredients to long-term success in today’s cut-throat digital age.
Data driven business decisions can make or break companies. A Wall Street Journal article recently discussed a study that discovered that among the companies surveyed, the ones that were primarily data driven and using a comprehensive data platform to guide their overall structure and strategy benefited from 14% higher productivity as well as 16% higher profits.They also found that companies that approach decision making collaboratively tend to treat information as a real asset more than companies with other, more ambiguous approaches. Know more please visit our blog here : https://www.groupfio.com/using-data-driven-decision-making-to-fuel-growth/
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Joined: December 17th, 2019
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