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The Importance Of Making Data Driven Decisions

When we want to make the right decisions it’s better to be based on the objectivity of data, rather than intuitions, desires and hopes. However, managing data can present several difficulties, such us the method of obtaining it, its reliability and finding the right interpretation.

Another problem with data is its acceptance by members of the organization. Data is always based on real events, therefore it’s completely objective. That makes some people don’t want to accept the results and keep on working without taking this data into account, but that’s a big mistake. Actually, accepting data even if it doesn’t say what we would like to hear is the right way to end up achieving our objectives.

“Data gives an ingredient of objectivity to our decisions, it’s better to accept it than to reject it”

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We shouldn’t waste our time in recriminations when data turns to be negative. The different members of the organization should analyze themselves with the help of their colleagues in order to improve their results and achieve the goals and targets set in the organization’s plan. That’s why the exchange of data based information, positive or negative, must flow through the organization. The data based information is the tool to make the right business decisions. The better is the quality of the information, the better will be our resolutions.

Anyway, it’s quite usual to omit the procedure to get, organize and interpret this data. This point is really important if we really want to get reliable data. As many companies aren’t used to managing and interpreting the whole bunch of data that their activity produces, new professional profiles are emerging specialized on these tasks. Many of them study Business Analytics master degrees in order to get all the necessary knowledge and skills to use data wisely on their business strategy.

“The procedures of getting, organizing and interpreting data are key to get really meaningful and reliable information”

Benefits of making data driven decisions:

The main benefit is the possibility to make decisions based on information and knowledge. Whether the information is produced by our customers, employees or technological platforms we must establish the right channels so that we can collect, analyze, summarize and structure all this information.

We can also increase the ability to demonstrate the effectiveness of the decisions we made in the past by referencing data records. Information about past events is very important, as well as the results obtained by those past strategies. If we want to justify and analyze our past decisions is key to be based on data, that way we will always be able to go back in time and understand the reasons of our success or failure.

We will also gain the ability to review and change our focus. As we manage and hear to data it’s easier to identify early deviations in our objectives and face unexpected market changes so that we can redirect our strategy and make sure we stay on the right track. Definitely, if we manage data wisely we will be able to make much better strategic plans as well as achieve the established objectives.

“Hearing to data also allows us to redirect the strategy towards our objectives before it’s too late”

Moreover, making data accessible to anyone who needs it promotes the organization’s transparency as well as the active participation of all those involved.

Definitely, managing and interpreting data is absolutely necessary for the companies who want to gain a competitive advantage in the market, making always the right decisions and having a clear picture of what’s going on. Now, accepting and applying these new methodologies it’s up to you.