Basics of decision making
Decision-making is a central process in every company that has a significant influence on the company's success.
The quality of these decisions has a direct impact on the results and further development of the organization.
Data-based decision-making can play a key role here.
With the advent of the digital age and the availability of data, decision-making is evolving.
The concept of data-driven business decisions, also known as "data-driven decision making", refers to the practice of making decisions based on data analysis and facts.
Challenges of conventional decision-making processes
Traditional decision-making processes are often based on subjective assessments or intuition, which can lead to distortions.
Despite being based on experience, such decisions can be affected by personal prejudices or incomplete information, which impairs the quality of the decision.
Frequent errors in decisions
Without a sound database, decisions can be based on inaccurate or incomplete information, which leads to errors. This can have a negative impact on the company.
Data-based decision-making can minimize such errors by providing a solid, fact-based foundation.
Data Driven Decision Making
Data Driven Decision Making(DDDM) is an approach in which decisions are made on the basis of data analyses and facts. Rather than relying on intuition or subjective judgment, DDDM relies on verifiable data to make informed business decisions.
This approach has the potential to improve the accuracy, efficiency and objectivity of business decisions.
Advantages of data-based decision-making
Data-based decision making can offer several advantages for companies.
It can lead to improved business results by helping to minimize risks , identify opportunities and make informed decisions.
It can also help to increase efficiency by optimizing information procurement and decision-making.
Importance of qualitative data
The quality of the data on which decisions are based is crucial to the success of data-based decision-making.
Incomplete or inaccurate data can lead to wrong decisions that can damage the company. It is therefore important to have access to high-quality data and to analyze it effectively in order to gain valuable insights.
The practice of data-based decision-making
Analyses and statistics play a decisive role in a data-based decision-making process.
They enable companies to gain meaningful insights from their data that help them make decisions.
They help decision-makers to recognize patterns, forecast trends and make well-founded decisions.
When used correctly, these tools can help to significantly improve a company's performance.
How companies can use data:
Companies can use various data sources to collect valuable information.
These can include internal sources, such as sales data and customer feedback, or external sources, such as market research data and social media. The challenge is to manage and analyze these volumes of data effectively.
Technology plays a crucial role in data-based decision-making processes. Tools for big data and artificial intelligence can help to process huge amounts of data and gain valuable insights.
