Data-Driven Decision Making Spells Success: 5 Steps Toward A Data-Driven Company

The jury is in and the verdict is clear. Data-driven decision making is far more effective than other methods.

It allows you to use real-world information with advanced data sciences to develop accurate strategies.

Even better, it improves your business everywhere, from marketing to supply chain management. 

Read on to learn more about the benefits of big data in the business decision making process.

1. Figure Out Your Goals

Every business has different operational realities. To effectively involve data in your decision-making process, you need to know what your goals are.

One of the most common ways to apply data is in customer acquisition and retention. In the past businesses had to rely on customer profiles that were much less accurate than they are now.

In many cases, educated guesses that didn’t represent the real market informed decisions. Nowadays it’s essential you have a holistic digital marketing strategy backed by data.

Spend some time identifying exactly what improvement you want to make. Then set up short and long term goals that fit your business needs.

2. Focus on Key Business Areas

Once you know what you want to achieve you’re ready to decide how to get there. Every business has multiple operational areas and lots of moving parts. 

If you want to lower your operating costs, look at things like account management and warehousing and distribution costs. The goal is to identify an area that you can improve through the application of big data.

3. Identify The Data You Need 

If increasing customer conversions is your goal, you’ll need to leverage data differently than to optimize operations. How you collect that information will also be different.

Regular operations will generate huge amounts of data. By choosing the area you want to focus on you make it much easier to process and analyze it down the line.

4. Analyze and Act

Getting the data you need is only half the battle. Big data analytics is an exacting field that provides people with precise and targeted information.

There are two paths you can take when getting started with big data. You can either develop your own in house analytics capability or use a data science consulting service.

Either way, you need to be sure you know what you want them to do and what areas of your business you want it to happen in.

5. Foster a Culture of Data-Driven Decision Making

Data analysis is rapidly becoming the only way to make effective business decisions. You need to make sure that everyone from the C-level on down understands its importance.

Don’t get only a few data reports created on specific issues. Make sure that you integrate big data analysis into the standard decision-making process. This helps your company adapt to rapid changes supported by data analysis.

Stay Nimble and Open To New Ideas

It’s a hard truth, but a lot of the time data analysis will point you in a direction you didn’t originally consider. You need to build data-driven decision making into your company’s DNA to be ready to adapt to the modern business landscape.

Find out more about effective business practices and tools using some of our other well-researched articles.