In a world overwhelmed by facts, numbers, and figures, data-driven decision making is king. Every day, thousands of analysts, researchers, data miners, Business Intelligence specialists, as well as regular employees, are trying to detect some recurring patterns, causal connections, or other significant regularities – all that to stay afloat and be one step ahead of their competitors.
In such a world, there’s no place for making hasty, emotional moves. Only informed decisions, based on a thorough analysis, are justified. Data Science, Big Data, data mining, Business Intelligence, and related fields or techniques are all designed to make companies’ standing or performance better, eventually.
The important thing here is to find data analytics tools and solutions that are truly razor-sharp, deliver more accurate key insights and give a particular business strategy a boost. In the case of BI systems or platforms, the decisions not only are more informed and smarter but can also be made much quicker.
Table of contents:
- Data-driven decisions & Business Intelligence in brief
- Data-driven decision making with BI – 20 benefits
- Business Intelligence tools for data-driven decisions
- Conclusion
Data-driven decisions & Business Intelligence in brief
Data-driven decision making (or DDDM) can be called an approach to business governance that implies making organizational decisions based on insights from verified data, facts, and metrics. The data should come from carefully selected sources, and be handled by staff that is proficient in the data-driven decision making process. Business Intelligence specialists using BI tools or software are a perfect means for that.
According to TechTarget, Business Intelligence can be defined as a „technology-driven process for analyzing data and delivering actionable information that helps executives, managers and workers make informed business decisions”.
The reliable sources from which relevant data may be extracted to gather the complete data set include CRMs, APIs, ERPs, historical data and real-time data from customer feedback forms, databases, health records, computer software, emails, chats, images, journals, reports, presentations, PDFs and the like – and cover both in-house and external sources.
To ensure that only the right data is taken into consideration, raw data should be cleaned for analysis – which means that any piece of information that is incomplete or incorrect, needs to be removed or corrected. Next, a carefully selected statistical model should be applied for performing analyses. Then, analytical insights can be made and presented in an understandable and graphically appealing manner, eventually transformed into actionable ideas and plans for the future.
Data-driven decision making with BI – 20 benefits
Big business is immersed in the data-driven culture, and hiring high-class data analysts for data collection and performing in-depth data analysis is something common in the corporate world, especially in industries such as e-commerce or finance, as well as in tech companies.
Sectors such as healthcare, telecommunications, entertainment, manufacturing, and retail can all make use of and reach tangible effects thanks to making strategic business decisions that are data-driven.
But why exactly is using BI data to make decisions so vital?
The 20 benefits of BI in this regard include:
- managing massive volumes of data swiftly,
- increasing confidence in the organization’s data,
- enabling access to crucial information immediately,
- eliminating speculation when making critical decisions,
- improving the decision-making process,
- getting rid of what’s redundant and dragging the company down (e.g. processes, products),
- cutting operational costs,
- identifying new market opportunities,
- getting a competitive advantage,
- understanding customers better thanks to extensive customer data analysis,
- improving customer experience and customer service,
- forecasting future demand,
- being more alert, responding to changes ahead of others,
- providing employee metrics (e.g. employee performance and satisfaction),
- making predictions and helping identify market and internal trends,
- boosting ROI (return on investment),
- reaching KPI (Key Performance Indicators) optimization,
- increasing prospects for organizational success,
- improving the company’s financial performance,
- driving innovation and fostering a data-driven approach.
All these great advantages may be in the mix in the case of analyzing data with BI by companies of all kinds and sizes. On top of that, all people involved may collaborate to identify the best ways to use the findings – in the company’s best interest.
But there’s more. On a more down-to-earth note, using BI software lets employees and decision-makers eliminate laborious and tedious tasks such as manual filling in and maintaining numerous spreadsheets. In turn, automating the process of reporting makes business analyses way quicker and easier to prepare, more accurate, and more insightful.
Business Intelligence (BI) tools for data-driven decisions
To avoid mistakes, misjudgments, and misinterpretations during the data-based decision making process, proper instruments need to be used, including powerful Business Intelligence tools.
Cutting-edge BI tools in use today cover:
- SAS Business Intelligence,
- SAP BusinessObjects,
- Oracle Business Intelligence,
- IBM Cognos Analytics,
- DOMO,
- Zoho Analytics,
- Dundas BI,
- GoodData.
What’s vital, even a regular employee can analyze data to some extent with BI solutions, as analyzes can be performed with no specific skills or training required. This accessibility and self-service approach make BI tools perfect for organizations of all sizes. Employees can access these tools at any time – also through intuitive dashboards on their mobile devices – as the data is stored in the cloud.
If you find the area of Business Intelligence tools interesting, you may find out more about it in our comprehensive, insightful article on this issue >
Conclusion
Backing up decisions with verified data – as opposed to intuition, assumptions, anecdotal evidence, or prejudice – has many benefits. Customer behavior analyses that are to generate more traffic and eventually increase revenue are a common example here but it’s just the tip of the iceberg in the case of using well-fitted BI tools for making good data-driven business decisions.
In the business environment, nothing can be left to chance, and shouldn’t be subjected to bias, misinformation, or misjudgment. Business leaders and decision-makers are well aware that when the competition is so tight and so fierce, in-depth, valuable insights may even tip the scales and help the company succeed or survive.
If you decide to leverage data from various – reliable and relevant – sources, you may gain a new perspective on your business, industry, and the whole market. Also, you may get many tangible benefits, like increasing productivity, sales, and revenue. And, above all, by incorporating BI tools in the data-driven decision making process, you can make business decisions of great significance easier.
Interested in adopting Business Intelligence practices, strategies, and technologies? If you want to make use of the incredible benefits they offer and accelerate your organization’s growth, contact Codete now.
