The concept of a data-driven organization is straightforward. However, it can be difficult for businesses in different sectors to identify what this type of decision making would look like in action.
Business Size Comparison Of Data-Driven Decision Making
Large businesses: Enterprise-level businesses have a significant amount of data at their fingertips. They can regularly collect and analyze data about the workforce and their customers, as well as pay for other data sources. However, these businesses can be hindered by legacy systems that don’t integrate well, and a stagnant culture. Key steps toward making data-driven decisions rely on pockets of innovation that are championed by executives to inspire other teams to follow suit.
Small and medium businesses: SMBs are facing a constant struggle to keep up with their larger competitors in a fast-paced market. The most effective way for them to use data is by capitalizing on their advantages. First, they can more easily make adjustments towards a data-driven company culture. Second, this workforce agility can build a more robust data storage and infrastructure system in order to collect data accurately that can then be mined and analyzed for insights. Small businesses should be mindful of the initial investment in their data and ensure that their staff is data literate to capitalize on that information.
Business Sector Case Studies Of Data-Driven Decision Making
Healthcare: Hospitals everywhere struggle with patient care. If something goes wrong, the hospital or its staff is often held liable. To avoid this, hospitals can collect comprehensive data on every patient interaction and course of treatment. They can then use this data to pinpoint causes of lawsuits or litigation and work towards eliminating them.
Manufacturing: One of the biggest complexities manufacturers face is their supply chain. With materials coming in from and finished products being shipped out to a number of entities, it can be a difficult business system to navigate. Collecting and analyzing data on inventory, shipping logistics, and supply chain activity can help manufacturers to plan for any number of events.
Higher Education: Academic competition amongst higher education institutions is fierce. Colleges and universities are constantly trying to find ways to increase their spot in the rankings. By collecting data on a wide variety of factors, educational institutions can narrow down what impacts student performance the most and work towards improving conditions.