All decisions concern future operations. When a company prepares decision-making materials for important matters, macroeconomic trends such as unemployment, consumer confidence indices and purchase prices must be taken into account. Each business must pay attention to the economic environment they are operating in to use the effect of these trends to its advantage.
Each company has its unique strategy based on understanding and interpretation of the underlying data. The definition of good decision-making is being able to choose a path that is sustainable and leads to intended results. But it is always difficult for a management team to know whether the interpretation of variable data is correct and whether unwanted biases are avoided. The only thing that is not biased is data, and data-driven decision-making should therefore be part of the decision-making process, to better manage the complex business environment and avoid bias.
A company does not operate in a static environment and many complex factors involving large data sets often need to be considered to be able to make insightful decisions that have a long-term intended effect.
Data-driven decision-making is a process whereby the management team can get support in creating high-quality decision material and reduce unwanted biased decisions. This will lead to positive long-term effects on decision-making and the business.
