ABSTRACT
Intuition and experience need to be powered by data analytics. Organizations need to integrate data-driven decision-making into their DNA. Data-driven decision-making is not limited to incremental (investment) decisions, it also extends to decision-making in day-to-day operations and processes.
Improved incremental decision-making typically supports the more strategic decision-making by senior management and higher. The decision-making in day-to-day processes is related to operational efficiency and effectiveness and typically not only replaces manual effort and reduces errors, but also improves the customer experience. Data-driven decision-making is conditionally correlated with improvements in revenue-based productivity of 4%–8%.
Adopting data-driven decision-making requires significant change management and leadership guidance and is not achieved overnight. Additionally, data-driven decision-making is instrumental in accelerating digital transformations.
