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The document discusses how data-driven decision making uses facts and data analysis to help organizations solve problems and guide business strategy. It provides examples of how streaming services and e-commerce used data to improve customer experiences and business models. While data is important, the document notes data should be combined with human expertise for the most effective decision making.

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subbaratnamneelisetty
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60 views2 pages

Subtitle 5

The document discusses how data-driven decision making uses facts and data analysis to help organizations solve problems and guide business strategy. It provides examples of how streaming services and e-commerce used data to improve customer experiences and business models. While data is important, the document notes data should be combined with human expertise for the most effective decision making.

Uploaded by

subbaratnamneelisetty
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as TXT, PDF, TXT or read online on Scribd
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So far, you've discovered that there

are many different ways data can be used. In our everyday lives, we use data when
we wear
a fitness tracker or read product reviews to
make a purchase decision. And in business, we use data to
learn more about our customers, improve processes, and help employees
do their jobs more effectively. But this is just the tip of the iceberg. One of the
most powerful ways you can put
data to work is with data-driven decision-making. Data-driven decision-making is
defined as
using facts to guide business strategy. Organizations in many different
industries are empowered to make better, data-driven decisions by
data analysts all the time. The first step in data-driven decision-making
is figuring out the business need. Usually, this is a problem
that needs to be solved. For example, a problem could be a new
company needing to establish better brand recognition, so it can compete with
bigger, more well-known competitors. Or maybe an organization wants to improve
a product and needs to figure out how to source parts from a more sustainable
or ethically responsible supplier. Or, it could be a business trying to
solve the problem of unhappy employees, low levels of engagement,
satisfaction and retention. Whatever the problem is, once it's
defined, a data analyst finds data, analyzes it and uses it to uncover trends,
patterns and relationships. Sometimes the data-driven strategy will
build on what's worked in the past. Other times, it can guide a business
to branch out in a whole new direction. Let's look at a real-world example. Think
about a music or
movie streaming service. How do these companies know what
people want to watch or listen to, and how do they provide it? Well using data-
driven decision-making, they gather information about what their
customers are currently listening to, analyze it, then use the insights
they've gained to make suggestions for things people will most
likely enjoy in the future. This keeps customers happy and coming back for more,
which in turn
means more revenue for the company. Another example of data-driven
decision-making can be seen in the rise of e-commerce. It wasn't long ago that most
purchases
were made in a physical store, but the data showed people's
preferences were changing. So a lot of companies created entirely
new business models that remove the physical store, and let people
shop right from their computers or mobile phones with products
delivered right to their doorstep. In fact, data-driven decision-making
can be so powerful, it can make entire
business methods obsolete. For example, data helped companies
completely move away from corded phones and
replace them with mobile phones. By ensuring that data is built
into every business strategy, data analysts play a critical role
in their companies' success, but it's important to note that no matter how
valuable data-driven decision-making is, data alone will never be as powerful
as data combined with human experience, observation, and sometimes even intuition.
To get the most out of data-driven
decision-making, it's important to include insights from people who are familiar
with the business problem. These people are called subject matter
experts, and they have the ability to look at the results of data analysis and
identify any inconsistencies, make sense of gray areas, and
eventually validate choices being made. Organizations that work this way put data
at the heart of every business strategy, but also benefit from
the insights of their people. It's a win-win. As a data analyst, you play a key
role in
empowering these organizations to make data-driven decisions,
which is why it's so important for you to understand how data plays
a part in the decision-making process.

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