Why Is Data-Driven Decision Is Gaining Trends
It is in our nature to make decisions based on the information that is readily available to us. However, the same bit of information is not always the best piece to use. The main issue is that we often make decisions based on the data that supports our primary prediction and not on the data that arises from other variables. As a result, we tend to make a decision based on the wrong data which can lead to making the wrong decision.
The Decision-Making Process and the Data-Driven Decision
People say that the future doesn’t belong to the best ideas or the most useful tools, but rather to the person who is able to predict what it will be like. This is the reason why many people are excited about data-driven decision-making. The idea of using data to make decisions using predictive analytics consulting is gaining popularity. Data has its fair share of benefits. It helps to reduce the chance of making the wrong decisions. It helps to reduce the possibility of missing a better decision.
Data-driven decision-making is gaining a lot of popularity in the last few years. Nowadays, companies are spending millions of dollars on making the right decisions based on data.
The decision-making process usually follows the following steps
- Data gathering — helps us find out whether the factor which matters in the decision-making process is limited to our control or not. The factors which are not limited to our control may change over time.
- Data analysis — The way data is processed and analyzed reveals certain insights into what is really happening in the market and this is where the real business intelligence comes into action. This is done through data analytics tools.
- Action plan — The information about the decision-making process is rather complex and doesn’t have obvious rules. Every decision makes us wondering and questions the outcome of our decision. The idea of an action plan helps us to reduce the risk of failure and to make the right decision.
- Evaluation — While the data that is used in making decisions may be the most important part of the decision-making process, it is the evaluation process that can make a difference. The process of evaluating data and making decisions on it is key in making decisions.
Data continues to be the fuel for smart decision-making. With the rise of big data and the continued evolution of algorithms, big data has become the new gold standard for a number of industries and disciplines. These include financial services, retail, healthcare (Power BI for HIPAA), and transportation. The way we use data to make decisions is called “data-driven decision-making”, and the benefits of this strategy are numerous, albeit some of them may not be highly apparent.
The top 10 reasons why the data-driven decision is gaining trends:
Value of data
Data can be beneficial to an organization in many ways. It can give one an idea about what other companies are doing, or how they are doing it. It can help an organization to understand its customers better by finding ways to appeal to them. For businesses, data can help them to make better decisions. With data, businesses can identify trends that would normally be hard to see.
Availability of high-quality decision-making tools.
In the case of numerous data available, it is always easy to make a decision as they know the right answer. The usage of data and data-driven decision have been on the rise for the past few years. As the availability of high-quality decision-making tools is increasing, business and government leaders are getting better and better at utilizing them. This is making data-driven decisions a trend.
The way data-driven decisions can be used to make better decisions.
We have seen the usage of data and analytics in various sectors of society. But a lot of people are not aware of the right way of using data and analytics. A thorough understanding of the real meaning and benefits of data and analytics can help one make better decisions.
It is also about Consistency.
The data-driven decision trends are more stable than other decision trends. Consistency is one of the most important aspects of data-driven decision-making.
The market is moving towards making decisions based on data collected from data sources.
At any given time, most organizations have data that they don’t know what to do with, and they don’t want to ignore it anymore. Therefore, the data is the way to go for every organization.
Its capability of proper analysis of data.
It’s the reason behind the fact that with data-driven decisions, the data can be handled properly. A data-driven decision can be done by several types of machine learning methods, which is known as Supervised Learning. You can see some of the Power BI report samples for understanding how your big data visualization can be done for smart decision-making.
If you are using Microsoft services then you have an option for Power BI Embedded for independent software vendors integration for visuals, reports, and dashboards. You can also check the Power BI Embedded pricing.
It streamlines business processes.
The ability to make decisions based on relevant data is becoming increasingly important for businesses. Decision support systems are being increasingly used in a variety of business functions, including business intelligence, marketing, and production planning. This type of analysis is able to get rid of the subjectivity of human decision-making and increases the likelihood of making the best possible decision. As long as the security of data is concerned, data governance is able to handle the data security internally.
It helps the decision-makers reduce their cost and time to make decisions.
Most people are not familiar with the principles of data-driven decisions. Consequently, when they have to make any decision, they have to try to do the research and then rely on their instincts and intuition. They make a decision without having any data.
The desire to understand the world.
We are all familiar with the problems that come from a lack of clarity. When we don’t know exactly what we want, we often leave the choice to our gut instinct, or just grab the first thing that comes along. But the truth is, that approach rarely works. Often, it leads us in the wrong direction. That’s why the data-driven decision is gaining trends. In order to understand the world, we have to understand the data.
The need for accountability.
With the emergence of Big Data, there is a need to embrace the concept of accountability in order to help its potential for success. Many times, there is a false sense of security in the analysis process which provides a wrong picture of the situation. A better picture of the situation is possible only when there is full accountability in the process.
Data-driven decisions are becoming the norm in organizations of all sizes — from small to large, and even government agencies. These decisions are being made for the betterment of the country, the company, or even the individual. The statistics show that data-driven decisions are gaining momentum, as big data sets are being analyzed and compared to come up with the best decision possible.
When thinking about making a decision, we all rely on our intuition and experience to make decisions. But as more and more people use data to make decisions, the role of data becomes increasingly important. In fact, data can influence decision-making in more ways than we realize. There are various big data tools are available like Power BI along with Power BI training for quickly grasping and implementing these tools in the organization.
Every industry has a need to make decisions on a regular basis. These decisions are often complex and require taking into account many factors. The benefits of using data to make decisions are many: data helps us find out new insights, provides a “big picture” view of the decision, and enables us to make better decisions. However, data is only useful if we can take action on this data.
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Sas Chatterjee is a Senior Architect with EPC Group. His focus lies in making sure that the execution of each engagement is delivered in a forward compatible, best practices manner. Sas is an extremely devoted professional and takes each project he is assigned very seriously. During the project execution phase, Sas invests the time needed with his clients to gain a full understanding of their requirements and develops a roadmap for achieving their desired end goal.