The 3 Keys to Data Driven Decision Making
The potential benefits of big data & analytics should come as no surprise to any companies operating today. Data has provided business owners and executives a priceless tool to illuminate previously imperceptible trends and strategies, leading to strengthened operations and employee relations and an improved customer experience.
According to a study conducted by Adaptive Insights, nearly 70% of CFO’s rank data-based insights as the top influence on strategic business decisions. This means a significant number of decisions are being driven by data.
In order to take advantage of this level of data integration in an effective manner, here are 3 crucial points to consider:
- Transactions and Data: Mining Your Raw Materials
Some people get overwhelmed by the amount of data or the data sources to pull from in order to get the information they need. On top of that, the various systems and tools generating and providing data through today’s continuously developing tech can seem overwhelming. The key is to keep the big picture in mind and ensure you stay focused on the question you are trying to answer or insight you are looking for. “Analytics is largely about discovering relationships that aren’t intuitively obvious. By definition, the interesting discoveries are intuitively very uncomfortable — if it doesn’t seem right and you can’t trust your gut, then you’ve got to trust the numbers. That’s hard for people” says Bob Meara, senior analyst at Celent. If there is some level of hesitancy when it comes to incorporating data & analytics, just remember that goal; you are trying to answer a question you have or understand a situation. The more data you have, the more clarity you will have.
- Make sure to use the right data sources for the right level of decision making
Data is being accumulated within all levels of operation at companies around the world, and the ability to analyze this information is more powerful than ever before. With so many opportunities to collect data and inform future decisions, it is imperative that the appropriate data is utilized.
The data collected will be used in order to shed light on high level operations, or get down into the nitty gritty of hour to hour work within any department. It is with this in mind that companies should put a substantial amount of thought and creative energy into what information is being collected and analyzed. Ultimately, if the appropriate data is sourced, it will effectively inform and influence your important decisions.
- Develop a Data Friendly Culture
An often overlooked step on the path to effective data driven decision making is developing a culture that rewards the use of the data. Since the processes involved with data collection and analysis may be new to some, it is important to properly educate your team and bolster a sense of meaning within the data. Employees at all levels of operation play their part in the information collected as well as how it’s collected. First the seeds of a data culture must be planted, and eventually as everyone is on the same page in regards to process, framework, intention, and results, then the true benefits of data begin sprout.
To find out more about how to aggregate the right data for your business and how to use that data to facilitate the growth of your business, schedule a free Strategy Session with Gerry Anderson, President of Logicon Solutions to review the options available to improve your accounting processes and Increase your Profitability!
You provide a quick review of your challenges and we provide you with information on how you can overcome these challenges based on proven systems that work. We will look at how you can implement the fixes and your next steps to immediately improve your cash flow and reduce your accounting costs.
Gerry Anderson, M.Sc., CPA, CMA
Toronto, Ontario: 647-933-0955 ext 301