The opportunity to harness the power of data for strategic decision-making is more relevant in the business world than ever before. Even small organizations have the opportunity to use technology, software, and tools that can help them gain centralized visibility and make decisions based on facts and numbers, rather than intuition.
Examples of places where data-driven decision-making can help businesses cut costs, improve strategy and be more competitive include online expense report options, hiring and talent decisions, and digital marketing.
The following are some of the benefits of using data to drive decisions across an organization.
Touched on briefly was the idea of travel expense management, where compliance is essential to control costs. Of course, this isn’t the only place in a business where compliance is necessary. From financial reporting to safety standards, compliance is a key priority for most businesses.
Unfortunately, what happens when data and technology are being used is that it’s difficult to see where non-compliance is happening before it’s too late. With data-driven decision-making, it’s much easier to see relevant patterns and trends that can show an issue with non-compliance. That issue can then be stopped before it causes financial, cultural or even safety-related consequences.
Boost Competitive Advantage
No matter what industry your business falls into, being competitive isn’t an option. You’re likely not just competing with local businesses, but businesses around the world.
To stay competitive, you need to see trends before others do. Using data can help you do that. You can use your own data, or you can do data research, and you can be better equipped to know what’s coming down the pipe regarding compelling products or services.
Implement Lean Strategies
Along with being compliant and competitive, most businesses also want to follow lean strategies as much as possible. Being a lean organization relies on cutting out the unnecessary costs, improving speed and efficiency and remaining flexible and agile. Of course, none of these can come at the expense of quality.
With business intelligence and data, it’s much easier to achieve all of these objectives. Big data and analytics allow for fast decision-making based on information that’s gathered in a centralized repository. There’s no need to dig around for the necessary information to cut costs, for example. You can simply look at the data in front of you and make a determination on ROI, and where spending could be reduced without sacrificing quality.
Employees and consumers demand transparency from the organizations they work for, buy from and interact with. Data can help improve transparency. Using data can show why certain decisions are made, and it’s easy to make key information accessible to people within an organization.
Finally, when data is made available internally to employees, it can help them have a greater sense of awareness about what’s happening at a larger level, and it can improve performance and engagement. Plus, when data is available to employees, they’re going to appreciate the sense of transparency and communication they feel like their employer is offering.