Data is now one valuable gold mine that you can leverage to grow your business. You no longer need to rely on flimsy gut instincts when you can use data to make informed decisions. It is a trend that has gained traction over the years, making it imperative for any smart business to jump onto the bandwagon. However, data analytics can be pretty overwhelming, especially when you don’t know your way around it. Don’t fret, though! Here, we have compiled a guide to data-driven decision-making in a business.
Determine what you want to achieve
There is a high chance you will buckle under the weight of the data you collect if you don’t have clear goals. After all, any road can lead you to your destination if you don’t have a specific one in mind. Therefore, it would be wise to set a clear strategy first before you dive into collecting data.
Frame the question you need to answer
The objective you set will help you formulate the specific question your business is trying to answer. For instance, if you want to review your pricing strategy, your question could be, “What is the best pricing strategy to improve profit margins by 30% in the coming year?” Once you set your specific questions, you will be better positioned to gather accurate and relevant data.
Gather ideal data that will answer your specific questions
You have now come to the most important part of the project, where you collect relevant data that provides answers to your questions. As you collect the data you need, it would be wise to consider your strengths and unique needs. It is not surprising to find out that little data brings the most insight than large batches of data.
Implement proper data governance measures
Imagine all your hard work going to waste because you skimped on a robust data governance plan. In this digital era where data is king, there are some things you can’t afford to miss. It is worth noting that Data Governance gives you an edge against your competitors. For starters, a solid data governance plan also improves the quality of the data you collect. Ensure the data governance strategy you adopt suits your unique needs and integrates with existing data practices.
In this era of data-driven decisions, consider the strategic inclusion of data matching algorithms within your data governance plan. These potent algorithms help identify and link related entries in your data, revealing insights that might otherwise be hidden. For instance, in the case of developing a pricing strategy, such algorithms could unearth patterns by associating customer profiles with buying behaviors. It’s not just about adding more data, but infusing quality into your insights, making your decision-making process more nuanced and targeted. Remember, the power of data lies not only in its volume but in the depth and relevance of insights it reveals.
Look within
We often forget that the answers we seek lie within our borders. Before you start the tedious process of collecting external data, confirm whether the data you have internally will suffice. There is no need to reinvent the wheel if you have enough data within your business.
Leverage technology
It is no secret that the world is digital, and your business should follow suit. Unfortunately, most businesses overlook this crucial step in the data-driven decision making process. You could use a well-designed management platform that makes data easily accessible and digestible.
Wrapping up
Once you are sure all systems are running smoothly and you have all the data you need, you can now run the analysis and trust all the hard work you have done so far. It would also be wise to get the reports to the right stakeholders promptly.
