5 Steps to Data-Driven Business Decisions

Download Whitepaper

Learn how to align your organization’s culture to make sure that everyone knows the value of that data brings to your organization.

  • Building the strategy
  • Targeting the data
  • Collecting and analyzing data
  • Turning insights into data

 

Tons of companies today want to be data-driven, and with all of the powerful
insights data can provide to guide your company, they should be. Yet, top
enterprise decision-makers are constantly reporting that they don’t actually
have access to the data they need, when they need it, in order to make
data-driven decisions. The biggest challenges? Difficulty accessing data in
actionable timeframe and in high quality and completeness.

The shocking gap in well-informed decision-making: Aberdeen’s analysis
reveals that your enterprise decision makers rarely have access to the data
they need, when they need it, with high quality and completeness. They get it
between just 13% and 47% of the time, with a median likelihood of only 29%.

These days, gut instinct is no longer enough if you want to remain competitive.
Most organizations realize that data should lie at the heart of an organization’s
decision making.

With technology underlying almost every aspect of your business, you can use the data it generates to see exactly what’s happening in your organization and use the information to make your business more agile by testing out different scenarios
and their success. You don’t necessarily have to be a data scientist to reap the rewards. There are some
simple steps you can take to make your business decisions more data-driven.

You don’t necessarily have to be a data scientist to reap the rewards. There are some simple steps you can take to make your business decisions more data-driven.

INSTINCT OVER DATA: WHAT YOU GAIN FROM DATA-DRIVEN DECISIONS

Today, the top companies around the world use data to make decisions about their business. The reason they’re leading the way is that they’ve gained a strategic advantage over their rivals simply by shifting their focus to data rather than relying on business acumen alone.

Fewer top-performing companies (40%) than laggards base the majority of their business decisions on gut feel or experience (70%). In other words, more organizations that make data-driven decisions are at the top of their game than businesses whose decisions are driven by instinct.

Here are just some of the things you stand to gain by becoming a data-driven organization:

  • Remain competitive among forward-thinking companies that do use data to their advantage.
  • Data-driven companies are most customer focused and enjoy a deeper insight into the customer and their journey.
  • Cost-effective – it can be costly to store large volumes of data, especially if you only use it for compliance purposes. Put the data to work and use it to your advantage.
  • Detect new – or missed – opportunities, helping your company grow and improve regularly.
  • Become more agile and better able to respond to markets / innovation.

Don’t let data lead you down the garden path

It has to be said that the vast amounts of data at your disposal don’t necessarily add up to improvements in the way you do business.

Data is only as valuable as the insights you can draw from it, and with all the information that’s floating about it’s easy to find yourself being led astray.

the key to drawing real value from it is identifying which data to use. The metrics you use (what you measure, such as page views or conversions) will determine how successful your data-driven decisions are. The ones you should be looking at are areas of business that are most crucial to its growth.

These are some of the questions you should be asking:

  • Where did the data come from, and is it truly representative?
  • If you’ve made assumptions based on the data, would these assumptions still stand under a different set of results.
  • Would independent variables change the results?
  • Could you use a different analytical approach?

How to become more data-driven in 5 steps

With all this in mind, let’s become more data-driven, shall we?

Step 1: Strategy

A lot of companies start by trying to quantify their current performance. But part of the beauty of data and the power of business intelligence is that you can drill into an endless amount of very detailed metrics.

Download Whitepaper

By submitting this form, I agree to Sisense's
privacy policy and terms of service.