Are You Making the Best Decisions?
This just feels like the right thing to do. Studies have revealed that more than half of us routinely use our intuition to make significant personal and professional decisions. There are situations when there isn't the time or reliable data available. However, relying on only a feeling of right or wrong would be a big mistake in today's complex and chaotic marketplace. A recent 2021 Fortune 1000 executive leaders survey revealed that 99% are investing in data initiatives to transform their companies. These investments in technology are producing a deluge of available data within companies. But are these investments leading to better decisions?
Leading companies are looking for data to transform their businesses, and 96% of executives report that they are achieving measurable business outcomes. However, these same leaders identify culture as the single most significant deterrent to becoming a data-driven organization. Only 30% of respondents indicated their organization had developed a well-articulated data-driven decision-making strategy and culture.
What is Data-Driven Decision-Making?
Data-driven decision-making (DDDM) has become somewhat of a buzzword as many leaders and organizations aim to be data-driven. A good working definition for what it means to embrace data-driven decision-making is:
Using facts extracted from data and metrics to guide business decisions that support business goals rather than relying on experience, intuition, and stories alone.
The following video provides a real-world example from Google of how businesses can use people analytics to make better decisions.
Why Competing with Data Analytics is Important?
Making data-driven decisions is not the only way leaders can succeed. However, many examples prove the power of analytics.
Providing direction during turbulent times. One thing that is for sure is that the world and marketplace are becoming more volatile, uncertain, complex, and ambiguous. Data analytics can provide leaders with new insights and understanding on how to transform their business.
Understanding what is not working. Testing and data collection enables leaders to fail fast and learn from making decisions.
Leverage technology investments. Technology is influencing every aspect of life and creating new opportunities. Data-driven decisions move beyond insights to action.