What is data driven decision making?
Data driven decision making (DDDM) is the most practical course of decision making, backed up by data and analysis rather than human intuitions. Patterns and facts are retrieved from old data, which governs decision making. Data’s quantity does not have to be a lot, even little data can provide with meaningful information. Serving motive with facts weights more than huge quantities. Steps taken in account of observation might not have any concrete supporting pillar other than your belief, but in case of DDDM the facts are there to support your stance. Making the right choice is immensely importance as it shapes the future of the company and everybody associated with it, and that is why data driven decision making is emphasized over and over. We study, analyze and then wisely mould our solution out of it.
Steps to make data driven decisions
1. Have a clear motive- before searching for the solution, it is important to understand the problems well and then visualising the goal you want to achieve.
2. Select the data sources- study data from various sources available and then select the source you think will help not just now but in future as well. The selected data could aid functioning in various projects, so choose wisely.
3. Highlight useful information from the data- the selected data should be organised well for hassle free utilization. The important points should be noted to avoid going through the entire data time and again in search of most relevant information.
4. Analyse the information- start building solutions from the data and check if it is serving your purpose.
5. Make your decision- with the analysis done, you can make a more informed and factual decision, based upon the chosen and well-studied data.
Conclusion
Success of the decision also depends upon the way one inculcates and adapts the measures in the radical times. Implementation has to be done in a proper manner to ensure good returns. In today’s age we have ample of data available to assist decision making, by using the correct approach we can gain a lot from data driven decision making and save on time and resources.
