A data-driven business is a business whose decisions are always driven by data.
What does ‘data-driven’ mean?
Decision making should always begin with two things: business knowledge and data. Decision making ends with actionable insights and a quantitatively supported decision, the outcomes of which contribute to the collective knowledge of the business and feeds the process all over again. Precision and quantitative reasoning are highly valued.
Being data-driven doesn’t mean scrapping the human elements involved in decision-making. After all, we believe data requires interpretation in order to be meaningful, and business knowledge is needed to ask the right questions. Sometimes, business knowledge is not possible to be coded into a traditional business intelligence, thus human intervention can be essential.
Does my business need to be data-driven?
- To build an evidence-based policy. The decisions your organisation makes affect your stakeholders, who will require assurance. Using analytics to make predictions, calculate risk and manage your resources effectively instills confidence not just for your stakeholders, but also in the way your organisation operates and makes decisions in the future.
- To become more insightful. Good data management allows you to know which direction to move into, but also provides specifics. Data-driven businesses know the answers to the ‘how much?’ questions such as ‘By how much should we increase stock-orders to meet seasonal demand?’
- To build a narrative. Know what has happened previously, why it happened, what is happening now, and predict what will happen in the future. Use prescriptive analytics to tell you what to do next!
- To identify new opportunities. Becoming data-driven allows a business to make the best decision from a range of possible options: ‘Given the state of the economy, should we increase our marketing spend or take on new employees?’
Where to begin?
The key to becoming data-driven is having a solid data strategy and a roadmap to help you to realise it. The first steps will differ depending on your current data competency and what problem you are trying to solve. Engage Consolidata and take the first step towards becoming innovative and making data-driven decisions across your whole organisation.