DATA DRIVEN DECISION MAKERS
13 MAR 2020
5 STEPS TO JOIN THE CLUB:
Taking decisions based on data has become a practice highly valued by managers.
Before the technological revolution, investments spent on market research were a necessary evil just so that companies could know their target audience and analyze sales performance.
Data, then, has become an essential part of the gear that makes small, medium, and large companies work. But it was necessary to develop analytical skills for organizations to build this current culture of making decisions based on data. With this, a new market arose, and the demand for professionals capable of extracting value from an enormous amount of unstructured sources of information.
To identify value in a large volume of data, you need:
1 – To structure;
2 – To identify patterns;
3 – To analyze.
Applying a new culture (Business intelligence)
We know that when it comes to developing a new culture within the company, the task becomes somewhat complicated, and it is up to the managers to play their leadership role and transmit to their team a new approach concerning the decision-making process.
The most applied model in the digital age is business intelligence, based on a statistical analysis of events that represent the company’s universe and includes:
- Target audience analysis;
- Sales history;
- Consumer behavior;
- Price sensitivity
- Client’s satisfaction
Nevertheless, it is essential always to emphasize the fact that even if we apply a culture of making decisions based on data, whether it be your B2B or B2C business, we are always dealing with people.
If you feel that you want to become a data-driven decision-maker or want to improve your current capabilities, then take note of these five tips:
1 – Identify the problem
We focus our efforts on problem-solving daily, don’t we?
Have you ever stopped and thought that you were directing your efforts to a problem that was not very clear?
Well, if your answer was yes, we are part of the same group of people who usually make this mistake. It is from there that we begin to understand the importance of identifying the problem.
Making decisions based on data primarily requires knowledge of the problem that needs to be solved, therefore, makes it easier to explore the information available and your hands.
2 – Define indicators
When identifying the problem, the second step is to define critical indicators for analysis, and that will be your guide to map possible solutions.
With the digital revolution, you can potentially measure any action, but before that, ask yourself the following questions:
- What do I need to map to solve my problem?
- How will I map?
- How relevant is the information regarding my objectives?
The more complex the problem, the higher will be the need for questioning. But remember, don’t miss the timing!
3 – Group the default data
Grouping the data goes through the structuring process. We know that, for the most part, a manager will not have time to group data and information.
A simple solution to this situation is to identify tools that are capable of collecting and structuring data, classifying them in a standardized way, and extracting real value from them.
The use of these platforms is essential to save time and make accurate decisions, but watch out, if the quality of the sources extracted is not reliable, then you will end up by having troubles at the end.
4 – Develop analysis skills
Analyzing data seems like an easy task, especially when we see its beauty when structured. However, the difficult point is to extract value from it, and here is where most of the mistakes happen.
To avoid them, get in mind some points:
- Embrace a macro and micro view;
- Try to be as impartial as possible;
- Exercise your ability to listen;
- Be Pragmatic;
- Think critically;
- Question and interpret;
Being open-minded to new knowledge is essential; moreover, the more precise your way of analyzing data, the more efficient your decision will be.
5 – Make the decision!
The grand finale of the entire process, a decision must be taken!
Do not surround yourself and do not be afraid, making decisions is a natural process of the human being and confidence only increases when there are data that can attest to the position defended by the decision-maker.
The use of Artificial Intelligence is recently raising a flag towards this topic as well, and its wise use can also be beneficial.
You can learn more about step 5 on the following articles:
What are the means used by you when making a decision based on data?
The more technology advances, the more we are inundated with large volumes of data. There is no excuse for not using it during a decision-making process.
When we make decisions based on data, we gain substantial confidence that we will achieve the expected results.
Please take the opportunity to download our free educational material on how to do an efficient data collection.
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We are a young company highly passionate about innovation and technology. Our ambition is to become a trustworthy data company with various applications and excellent user experience.
Our primary purpose is to help professionals who make decisions to work more effectively by quickly providing a comprehensive yet structured view of reliable and updated information. We are proudly serving worldwide more than 8 thousand users like compliance practitioners, HR managers, and so on. If you feel interested or curious, get in touch with us!