Data-Driven Decision-Making (DDDM): How To Make It A Success?

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Business organizations can leverage facts and insights that are obtained from advanced analytics to make strategic decisions that bring the most benefits. Take Google, Telsa, and Netflix as examples of leading global companies in fully utilizing data-driven decision-making (DDDM) for business successes. Their successes prove that DDDM plays an essential role in any successful business.

If you are still wondering about the advantages that the DDDM can provide, or have doubts about risks that might happen when adopting DDDM within your business, this article will help you understand how to establish a culture of data-driven decisions in a successful way and learn from successful example.

Instead of making a long list of all of the benefits that DDDM can bring, we can take a look at a practical example in real life that demonstrates the value of DDDM.

Utilizing data to enhance the business performance and outcomes

TPP Software had partnered with one of the companies in the financial industry in order to make a single unified platform to gather data for evaluating their investment portfolio. An end-to-end data delivery pipeline was developed by the experts from TPP Software.

Next, in order to analyze data from different sources to examine and evaluate their investment portfolio performance, our data scientists and engineers leveraged the essential models including Machine learning algorithms to do so.

With the collected data, our team can provide comprehensive reports on various aspects like finance (such as purchases, data consumption, etc.) and/or reviews from customers (through social media platforms and other sources such as Facebook, Twitter, etc.) of our client’s portfolio companies.

The client company’s C-level management is able to make data-driven decisions on how to address the difficulties of their decision-making by utilizing the reports mentioned above. As a result, there is an increase in the quality of the provided services, thus, our company can help our client expand its operation.

To sum up, despite the fact that it is not an easy job to establish a culture of data-driven decision-making, the end results are indeed well worth it.

Establishing an effective culture of making data-driven decisions is not a one-day task, it requires time, effort, and thorough planning. To achieve it, there are key steps that need to be considered as follows:

For starters, it is crucial to set the final goals that you aim to achieve with the data-driven decision-making, before jumping to implement the DDDM process within your company. It will literally help you to have a clearly defined roadmap for your project and provide something that is quantifiable to measure your results against.

It is essential to have each goal as precise and as detailed as possible. Do not fret out if you find this step challenging. Additionally, you can always pick an alternative that allows you to engage with an external team full of professionals, consultancy services, and/or outsourcing can be considered if needed. With the assistance of an outsourcing or consultancy partner, you will be able to validate your idea, determine realistic KPIs, and prepare a completed data strategy.

In this step, you ought to focus on establishing an effective delivery pipeline that will provide you with the needed data and enable DDDM.

The two initial steps of this are to analyze the existing systems and to identify the sources of your data as well as the type of data you want to collect. After obtaining some useful information, you can leverage them to turn the existing infrastructure into an effective internal end-to-end data pipeline that will manage the data flow within your business and store it in the data lake.

It is highly recommended to develop such projects by partnering with a reliable software development outsourcing company having years of experience in providing services in AI, Big Data, and Advanced Analytics. These IT services providers can help you have your systems audited, develop a detailed transformation plan, as well suggest how to make it as efficient as possible. Moreover, this software company will be able to provide you with a team full of well-trained data analysts and data engineers as well as ML developers that possess the relevant expertise and experience to implement your DDDM process.

A data delivery pipeline usually comes to conclusion with a thorough analysis phase. This is where the data that was collected and processed is analyzed to extract actionable insights in the forms of visualized analysis reports with graphs, charts, etc. that can be used as a foundation to support decision-making.

Finally, all you have to do in this final step is to use the insights that are collected from the previous step, data analysis, in your planning and critical decision makings. There are numerous advantages you can achieve from data-driven decision-making (DDDM), from driving sales to increasing revenue and profits to reducing overheads as well as improving the quality of the service as well as customer reach.

As mentioned above, DDDM is not a one-day process, rather it is a continuous process requiring regular check-ins and continuous improvement. It is necessary to have your progress examined and see if the DDDM initiatives have any tangible benefits on your business operations, specifically after a certain amount of time that was previously agreed upon. If the results are not as expected, it is essential that you re-examine the process step by step and find out whether there are any mistakes or possible improvements that can be done.

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