Data Driven Decision Making
Powering your business growth with insights

9 Minute Read

In today's data-driven world, businesses that can leverage data effectively have a competitive edge. Developing a data-driven decision-making process is essential for staying competitive and making informed decisions based on real-time data analysis. Through this transformative business journey, you will increase your business' effectiveness, profitability, and competitive edge.

Preparation and Planning

The old maxim of "Proper Preparation and Planning Prevents Poor Performance" is very true when it comes to building data-driven decision-making processes in your business. Here are some key points to bear in mind when preparing for this transformative business journey.

Define your business' Data Strategy

In order to create a world class Data Strategy you should identify not only how data will be collected and used within your business, but also how you are going to train your business to use data and how the insights will be acted upon by your business. Whilst creating your data strategy you should always ensure that it is aligned with the business' strategy to ensure you are working to deliver the business' goals and objectives.

Through the creation of your Data Strategy you will also identify key areas where data driven decision making can be used to achieve your goals, and also areas where implementing these practices will provide a quick return on investment which can be used to garner further support.

Identify the data you need

With your goals and objectives defined within the Data Strategy, and plans on how to achieve them, now you can identify the data you need to realise success. This may involve looking beyond the data currently used within the business, as well as making sure that the required data flows in the business are in place.

It is critical at this stage that the data is processed and of a high quality. This is because data processes are "RIRO" processes - Rubbish In, Rubbish Out. If your data is not of a suitable quality, your insights won't be either, meaning your business cannot make informed and accurate data driven decisions.

One way in which to ensure the accuracy and reliability of your data is to incorporate a data governance framework as part of your business' Data Strategy. This framework should outline how data is collected, stored, analysed, and shared within your business. It should also establish processes for data quality control and data security.

Breaking Down Silos

Data silos can be a major challenge for businesses that need to make data-driven decisions. Data silos refer to the situation where data is stored in isolated systems or departments that do not communicate with each other. This can lead to duplicate data, inconsistent data, and difficulty in accessing and analysing data. Overcoming data silos is essential for creating a complete and accurate picture of an business' data.

Overcoming the issue of Data Silos is challenging, however through effective training, communication and alignment of teams they can be removed and data can flow freely throughout the business.

Analyse

With your plan in place, and the data collected, now the focus is analysing the data to create the insights from which your business can act. There are three key aspects that when addressed ensure your business will be able to act upon data to drive growth.

Tools

To effectively collect and analyse data, businesses need to invest in the right tools and technologies. These tools may include data analytics software, business intelligence tools, and data visualisation platforms. It's essential to choose tools that meet your specific needs and integrate with your existing systems and workflows.

Team

Building a data-driven decision-making process requires a team with the right skills and expertise. This team should include data analysts, data scientists, and business analysts who can interpret and analyse data to inform business decisions. It's also essential to have leaders who can effectively communicate data insights and drive decision-making across the business.

Processes

There are many ways in which data can be analysed to derive insights, and so it is key from the outset that there is a project plan in place that: defines what an acceptable output looks like, the timeframe the solution needs to be developed in, who is going to use these insights, and how are the insights going to be acted upon. With these points identified your team can use the right tools to create a solution that meets your business' requirements.

It is important to remember that this transformative journey is exactly that, a journey; it is better to build something simple and build upon success than to invest a lot of time into something that might not drive the value you expect. Through this process you not only ensure a better return on investment, but also you keep enthusiasm for this journey throughout the business.

Data in Action

Collecting insights is good, but acting upon those insights is exceptional. Making sure the business is able to act upon insights obtained from data is key in data driven decision making. To do so you need to align the whole business, not just the data team, which truly puts data into action.

Processes

The "so what?" test is critical when analysing data as it keeps teams focused on the outputs rather than the methodology, but this also applies to all teams in the business. A key way in which you can get the business to engage with data driven decision making is to show and prioritise what these processes enable the business to do. With these processes defined, it helps demystify and democratise this transformative journey as everyone understands why, and the benefits, these new processes can bring.

Training and Communication

It is easy to overlook the importance of training in developing data driven decision making. Many within a business might be comfortable with current ways of doing things, and unsure as to how they can benefit from changing their approach. Through training you not only help them understand the benefits of how data driven processes can help them in their role, but also increase their overall data literacy, which can in turn drive further developments and growth.

Data literacy is a crucial component in developing a data-driven culture in any business. By ensuring that employees have the necessary skills to work with data effectively, businesses can make informed decisions that lead to increased productivity and growth. However, achieving data literacy requires a cultural shift that values data-driven decision making and encourages collaboration and communication.

One way in which you can facilitate this shift is though fostering a common data language, making sure that the data team knows how to communicate with the business, and the business knows how to communicate with the data team. This common language can help ensure there are no miscommunications, and therefore there is less wasted time on developing solutions that aren't right for the business.

Another way in which you can improve data literacy and communication is through data visualisation. Data and technical teams are comfortable with data in the most raw formats, however that comes from years of experience and training. Data Visualisation can help make the insights and data more approachable, this is because humans are very good at recognising patterns, and making data visually understandable makes this possible.

Data literacy and communication is key to data driven decision making, and needs to be encourage throughout the whole business. So if you are at the top of the business, you should lead by example to encourage the business to engage and develop these new core skillsets.

Iterate

As we mentioned above, a data-driven decision-making process is not a one-time project but a continuous effort. It's essential to regularly monitor and evaluate your process to ensure that it's meeting your business objectives and goals. This evaluation should include metrics such as ROI, time to decision, and data accuracy.

Through this you can identify areas of improvement for existing processes, and also identify the projects where further development will continue to drive value. Through this approach your business remains agile to changes, as well as responsive to change both from within and outside of your business.

Key Takeaways

Building a data-driven decision-making process is crucial for businesses looking to stay competitive in today's data-centric world. By following best practices such as establishing clear goals, using quality data, leveraging technology, and fostering a data-driven culture, companies can make informed decisions that drive growth and success. However, implementing such a process can be challenging, requiring expertise in data management, analysis, and strategy.

How Demonstrandum Can Help

At Demonstrandum, we understand the challenges that businesses face in building a data-driven decision-making process. That's why we offer tailored solutions that enable businesses to leverage the power of their data without prohibitive overheads. Our team of experienced data consultants can help you develop a comprehensive data strategy, implement effective data governance and management processes, and provide training and support for your staff to develop their data literacy and analytical skills.

What sets us apart is our ability to provide these services without imposing prohibitive overhead costs, and with Demonstrandum, you can get started immediately on your Data Journey. With our help, you can confidently make data-driven decisions that drive business growth and success.

By partnering with Demonstrandum, you can unlock the full potential of your data and drive sustainable growth for your business. Contact us today to learn more about how we can help you build a data-driven decision-making process that works for your business.

Contact us today to learn how we can help you increase data literacy to power a data driven culture in your business.

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