Data Driven Decision Management from a Dashboard

Perspective

Nirmal Kumar BETCHOO1

1
Université des Mascareignes
Beau Plan, Pamplemousses
Republic of Mauritius
[email protected]

ABSTRACT

Organisations are eager to use and develop decisions by

managing data in the most efficient way. To become more
competitive and better meet their current and future needs, data-
rich information enables managers to prospect the market, use the
information for analysis and make decisions that could keep their
businesses one step ahead of the rest. The scarcity of such data
creates gaps in research information for business intelligence.
Although algorithms and artificial intelligence are introductory
concepts of data-driven decision management, the dashboard can
be a useful tool that organisations can use both to present useful
data and to make good decisions effectively. This paper describes
the concept of using and managing data for decision making in
areas other than information technology. Using a conceptual
framework to describe the importance of data-driven decision
management, it argues that the creation of dashboards could be
applied effectively the Université des Mascareignes (UdM)
where it could meet the needs of users and decision-makers
willing to get a clear picture of the problem affecting them.
Rather than just disseminating information, the dashboard could
provide important information that improves decisions and
actions that can be initiated more efficiently and productively.

Key words: Data Driven Decision Management, Benefits,

Attributes, Application, Dashboard
1 Introduction

Data-Driven Decision Management (DDDM) is defined as a corporate governance

approach that values decisions that can be supported by verifiable data. The success of
the data-based approach depends on the quality of the data collected and the
effectiveness of its analysis and interpretation [1]
In the early days of IT, an expert with a strong background in technology was often
needed to extract data for informational purposes, as this person needed to understand
how databases work. Today, business intelligence tools often require very little or no
support from the IT department. Sales managers can customise dashboards to easily
view the data they want to see and run custom reports [2]. Changes in the way data
can be extracted and visualised allow business leaders with no technology experience
to work with analytic tools and make data-driven decisions.

1.1 Conceptual Framework of the paper

The structure of this paper follows from a brief description of the Data Driven
Decision Management (DDDM) process. Although this concept may be familiar to
Information and Communication Technology (ICT) specialists, little is known to the
public beyond this field. The attributes of DDDM are highlighted with respect to its
importance and innovation in decision making. At the same time, the advantages of
DDDM are explained since they can be effectively addressed to different
organisations. Some practical information on the use of DDDM is then developed to
show how it has been useful in a practical way. Finally, the dashboard is presented as
one of the levers that encourage DDDM to meet the needs of an external stakeholder
which could be provided by the Université des Mascareignes, a public research
university in Mauritius.

Fig 1: Conceptual framework of DDDM (Author’s Source)

1.2 Attributes of data-driven organisations

There exist some attributes related to data-driven organisations that engage in.
Firstly, a data-driven organisation can perform continuous testing that includes user
testing, working directly with real customers to get direct feedback on any new
features or products [3]. Secondly, a data-driven organisation needs a continuous
improvement mind set. This requires careful analysis, the development of
mathematical or statistical models and simulation [4]. Next, a data-driven organisation
might be involved in predictive modelling, forecasting sales, stock prices or company
earnings, but more importantly, feeding forecast errors and other learnings into
models to improve them [5]. Finally, a data-driven organisation will almost certainly
choose future options or actions using a set of weighted variables.
Such characteristics or attributes require a highly efficient, data-based culture,
supported by modern tools to promote fluid innovation. Many companies excel in
some areas, but few do well in all of them [6]. In a way, accelerating processing and
data gains is a scissors effect. Companies with traditional mind sets and manual
processes will be left behind, while those with easy access to data scientists and
computing resources will reap a huge harvest.

1.3 Benefits of DDDM

There exist some advantages of DDDM. A data-driven approach to problem

solving a improves an enterprise’s communication and teamwork, and develops
performance metrics like revenue and margin. Data and evidence-based brainstorming
help turn creative ideas into business transformation [7]. The use of measures and
analytical methods specified at key points in your decision-making processes
improves a company’s accountability. An added benefit of using data is that a fact-
based discussion tone helps teams work on issues with minimal personal or
emotionally charged conversation [8].
Data collection and analysis has long played an important role in companies and
organisations. Although data-driven decision making has existed in businesses in one
form or another for centuries, it is a truly modern phenomenon [9]. Today's largest
and most successful organisations use data to their advantage when making high-
impact business decisions.

1.4 Insights into data-driven business decision making

Software algorithms are changing the way people work in an increasing number of
fields today, managing distributed human workers at scale [10]. In these work
environments, human tasks are assigned, optimised and evaluated using algorithms
and tracking data. The impact of this data-driven algorithmic management on human
workers and work practices in the context of Uber and Lyft, the new ridesharing
services.
 One of their main findings was that algorithmic passenger allocation in Uber and
Lyft automatically distributed countless ride requests to drivers in a matter of seconds.
The rapid and frequent acceptance of assignments by the drivers ensured the
efficiency of the service, maximised the number of passengers to obtain a fast service
[11].
Although many managers have pledged their allegiance to the principles of data-
driven decision making, there is still no comprehensive approach to measuring a
company's ability to leverage the potential, its own information assets; in other words,
there is no measure of “data productivity” [12]. Inspired by the traditional OEE
framework, there exist innovative perspectives where a) data productivity is divided
into data availability, quality and performance of the decision-making process using
this data, and b) technical and organizational factors have been used, helping
companies to assess their current level of productivity and actions to improve it [13].
The model has been tested through three case studies and the results obtained from its
application reflect the expectations of business leaders who are accelerating the
cultural change necessary to fully express the potential of Industry 4.0.
Data-driven decision making might further be considered through cluster analysis
methods, namely centroid, connectivity and density [14]. Drawing on traditional
clustering techniques, there exists algorithmic extensions and innovative efforts to
process dynamic, large-scale, representative, non-convex, and consensus data in new
business environments. Clustering could be integrated into the global solution in
contexts of management assistance, collaborative business economy and decision
support in health [15].
Two cases of data-driven management were analysed in the context of highly
digitalised Danish universal well-being. The first case showed how data-based
management was implemented in a hospital in Denmark. Danish hospitals and the
Danish healthcare system in general have a long tradition of data-based processing
supporting data-based management in Danish hospitals [16]. The second case
investigated under what conditions it is possible to establish data-driven management
in an environment without any tradition of data-driven decision-making [17]. Data-
driven management has consequently helped improve the delivery of public social
protection services to the long-term unemployed to help them find employment. The
researcher concluded that one of the main findings is the need to create a delicate
balance between top-down and bottom-up management, which is essential for data-
driven management to work in practice.

1.5 Empirical evidence of benefit of DDDM

In a related research, detailed survey data on business practices and investments in

information technology from 179 large publicly traded companies, and found that
companies that adopt DDD have output and productivity between 5% and 6% higher
than one would expect given other investments. and the use of information
technology. Additionally, the relationship between DDD and performance also
appears in other performance measures, such as asset utilisation, return on equity, and
market value [18].
 Data-driven decision management might be undertaken as a way to gain a
competitive advantage. A study from the MIT Center for Digital Business found that
organisations motivated primarily by data-driven decision making had 4% higher
productivity rates and 6% higher profits [19].
The DDDM conceptual model was validated in a research with 456 usable
responses from employees of different companies using different business analysis
tools. The study found that data-driven culture has strongly influenced product and
process innovation, making the company more competitive in the industry [20].

2.0 The Dashboard as a key component of DDDM

In today’s organisation, all departments can benefit from business dashboards.
Corporate dashboards are essential tools that help managers visualise the information
they get from their data. Business Intelligence tools are essential in this regard, as they
help managers collect all their data in a centralised place and work there.
Corporate dashboards can be of many types, from analytics to operational to
strategic, each of them tracks a certain type of metric and tells a specific data story
[21].

There exist three types of dashboards for data-driven decision making. They are:

Strategic dashboards
High-level dashboards for executives and senior management to help them measure
the performance of their strategies [22].
Analytical dashboards
Data-rich dashboards with filters and breakdowns for data analysts and business
analysts to investigate various business questions posed by their bosses, such as
executives and managers [23].
Operational dashboards
Key performance indicator (KPI) dashboards used by operations managers to monitor
the KPIs of their processes and services on a daily basis, primarily for compliance or
the pursuit of excellence [24].
Dashboards can focus on particular tasks in a department and how they are
performed, or provide an overview of the current state of general activities. Working
with modern corporate dashboards improves collaboration and communication within
a team and between business units.

2.1 Creating a dashboard for DDDM at UdM

This paper considers the creation of a dashboard at the Université des

Mascareignes (UdM), a public university in Mauritius. Data collection and use might
be common in a university with regards to the various uses of such data. It is
important to consider the relevance of using data and how this could be helpful in
effective decision making.
2.2 Practical application of dashboards

A local authority recently aimed at devising an appropriate value proposition to

target and attract international institutions to set up in Mauritius. It wanted to collect
information in the key following areas. a) opportunities for linkages and collaboration
with international institutions, either for curriculum development and student
exchange, b) current value proposition to link up with international universities and
institutions, c) developing new programmes as per industry needs and d) attracting
international students.
To that end, the UdM was called to explore avenues of collaboration with
international institutions. In the first instance, such form of collaboration depended a
lot of data driven decision-making. The main question was to find out where
information existed and how this could be showcased to the incumbent so as to create
a value proposition. It became important for the university to come up with data in
such a situation.
An analytical dashboard could effectively address the key questions from which
elaborate information might be developed afterwards. For two selected arguments, a
dashboard is developed to provide sufficient data for decision-making. These relate to
a) opportunities for linkages and collaboration with international institutions, either
for curriculum development and student exchange and, b) current value proposition to
link up with international universities and institutions.

2.3 Dashboard One: Opportunities for linkages and collaboration with

international institutions
 Fig 2: Dashboard illustrating potential linkages with international institutions
(Author’s Source)

The two dashboards each answer the key questions asked by the local authority.
Figure 1 explains the main information that the UdM could provide with regards to
opportunities for links. The first dashboard clearly illustrates the different affiliations
over the years (top left), the university's new course offering today and in the near
future (top right), the guiding principle of links and collaboration at the centre and the
benefits proposed by the UdM within the framework of a possible exchange
programme.
The dashboard shown in Figure 1 elicits an immediate response from the
organisation seeking an effective response regarding cooperation and linkages. In a
nutshell, it provides the basic data with both facts and figures for the incumbent.
Rather than being a simple narrative of the key information requested, the dashboard
provides a serious yet engaging overview of the possibilities for collaboration without
being too detailed. With succinct but clear understanding, the dashboard already
presents the initial documentation needed for a specific question.

2.4 Dashboard 2: Current value proposition to link up with international

universities and institutions
 Fig 3: Dashboard illustrating Current value proposition to link up with international
universities and institutions (Author’s Source)

Regarding the expected value proposition of UdM, the second dashboard offers a
unique presentation with enough information through the exploration of data mining.
At the top right, the laboratory facilities are briefly mentioned while at the top left, the
academic profile of UdM staff is presented. In the center on the left, the progression
of doctoral students over the years is evoked while in the center on the right, the
profile of graduates by department is highlighted. Bottom left, upcoming training
courses reflecting current trends are mentioned while bottom right, the opening of two
new schools at UdM are mentioned.
All of the data provided in Dashboard 2 illustrates the value proposition at a
glance. There is no exaggeration of the facts but a simple presentation of rich data that
will capture the needs of the public. The quality of information is important because
the dashboard encapsulates the expected data from a single perspective.

2.5 Improving decisions through the dashboard

The two examples explained above show how analytical dashboards could be useful
in providing information to incumbents. At the same time, dashboards might be good
at decision making from the university perspective. Certain examples are outlined
below. A non-exhaustive list is briefly discussed.

Development of new courses

New programme development needs to be discussed after a situational analysis
aiming to find out the attractiveness of a new course, its relevance as a new
curriculum and the cost implications of such a programme.

Suppressing unattractive courses

Although the elimination of some courses might be inconvenient to academics, there
might be a financial and human implication behind eliminating courses that have gone
obsolete and redundant. There must be enough documentation to support such a
decision.

Forecasting potential avenues for research collaboration

Research collaboration is a well-sought strategy at the UdM. Yet, there needs to be a
clear understanding of the key issue, avenues for collaboration for exchange
programmes and dual collaboration. Here again, DDDM insights through a dashboard
adds value to the search for collaboration.

Improving student intake at the UdM

The attraction of more qualified students along with a diversity component could be
an area of prospect for the UdM. Attracting doctoral students from other spheres
willing to further research in the university could be a suitable decision making
process.

Recruitment strategy at the UdM

Recruitment strategy is a core Human Resource Management concept. A situational
analysis of existing staff as well as forecasting trends in recruitment could help
develop capacity at the UdM. The dashboard might initially help find out gaps in
recruitment.
Quality excellence at the UdM
Improving quality in an ongoing strategy at the UdM while, at the same time, compels
staff to think in a more collaborative way how to reduce bottlenecks and
ineffectiveness in the learning process. A dashboard could add data rich information
to address the problem.

3 Conclusion
Well-designed and developed dashboards are usually the result of careful planning
guided by in-depth specification of requirements. They can provide insight,
explanation, and a shared understanding of critical organisational information, then
empower users to act on the information when and where it is needed. A dashboard
basically represents a visual display of the most important information needed to
achieve one or more goals; consolidated and organised on a single screen so that
information can be monitored at a glance [25]. For a professional to get the best
insight into the data and analyse it properly, they need to identify what to act on and
streamline the workflow. Dashboards bring together data from multiple sources and
combine it into a single interface for a detailed overview of the business while
reducing reporting time [26]. The purpose of this paper was to briefly explain the
importance of DDDM for organisations that are not necessarily IT-based. The
relevance of the DDDM has been illustrated through the development of dashboards
that can respond effectively to the strategic arguments of the university.

3.1 Future Directions

This study might be also influenced by some future directions. For instance, on
being able to present data effectively, the university uses the dashboard as a means of
conveying information to external audiences as well as developing the potential for
using and exploiting data more competitively in the changing business environment
today. The dashboard concept could also be integrated in the development of future
university programmes with reference to the data available for study as well the
interpolations and extrapolations that might be undertaken for effective decision-
making.

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