Some of the largest corporations are making data-driven decisions – including Amazon and Google. A recent Harvard Business Review demonstrates how businesses are evolving to take advantage of the benefits of data-driven decision making. When good market instincts, talented employees, and a customer-centric focus are balanced with business analytics, the results can turn business challenges into business insight and a failing sales territory into a refreshed revenue cycle.
Today, even small and medium-sized business owners (SMBs) can remain competitive against corporate giants. The key is being able to detect and take advantage of new opportunities for growth. This foresight can make any company more agile and ready to respond to changing markets or new innovations. Here are the Five Steps to Data-Driven Business Decisions:
STEP 1: A CLEARLY DEFINED BUSINESS STRATEGY
It doesn’t help to chase every bright object in market trends. After you’ve developed a concrete strategy that fits your business objectives and financial goals, only then can you truly leverage the power of Big Data to drive your business strategies forward – generating new leads, increasing your customer base, and optimizing your supply chain processes.
STEP 2: IDENTIFY AND TARGET BUSINESS DATA
Every company will have a stream of data from multiple sources that they can begin with. Customer data, operating costs, supplier information, income from sales, and much more valuable information from different divisions must be identified, collected, and organized. But, you must also identify valuable sources of data that are not sourced internally. Partner with an outsourced data science services provider to gain a team of experts that give you access to cutting-edge tools such as Big Data analytics, machine learning, and artificial intelligence deployment.
STEP 3: COLLECT DATA FROM MULTIPLE SOURCES
Amazon and Google are expert at collecting customer data and using that information to capture consumer behavior. The end goal is to use business analytics to predict what customers want – and more importantly, what customers need. This applies to both B2B and B2C market sectors. There are a wide range of tools and metrics used when collecting and analyzing customer data which may include geographical data, lifestyle choices, or income levels. The more data you can collect and analyze – the greater advantage you will gain in data-driven decision making in business.
STEP 4: IMPLEMENT DATA ANALYTICS SOLUTIONS
The value of your data is only as good as your ability to correctly organize and analyze the results. Data-driven decisions should be based on accurate data. The analysis process depends heavily on a robust IT hardware infrastructure that is connected to an integrated system of analytical software tools. Between these two physical requirements is the human factor – Data Scientists and Data Engineers who can translate the volumes of collected information into concrete, actionable business decisions.
STEP 5: TURN DATA INSIGHT INTO ACTION
After the technical or hard steps of data collection, cleaning, ordering, and organizing are complete, the next soft steps include determining what recommendations the data present for your organization. Decisions must be made on what changes your company will implement to align itself with the analyzed data. Stakeholders, executive management, and division heads should collectively discuss what quality insights the data present and what actionable steps each department can make to bring an empowered response to the resulting business analytics.
Sequent Solutions – Your Data and IT Experts
If you’re ready to use Data-Driven Decision Making in Business, contact Sequent Solutions. We are data and IT experts that are ready to provide the best possible resources at low cost, with no risk to our clients.