The Importance of Data in Making Business-driven Decisions

While age-old wisdom and a knack for traditions can help when it comes to formulating critical solutions that require prudence, an over-reliance on each of these, at the same time, can impede organizations from making progress in keeping with the changing times. Research by F. Caro and Saez de Tejada Cuenca termed Believing in Analytics: Manager’s Adherence to Price Recommendations from a DSS, featured in this article on UCLA Anderson Review, therefore, provides an insight into the necessity of breaking old business patterns and the importance of data in making business-driven decisions.

Despite the accuracy and the authenticity that decision support systems centers around algorithms can offer, they are often negated and disregarded by seasoned business professionals owing to a number of varied biases and preconceptions, the article reveals. Reiterating the benefits of data-driven decision making, the article takes up specific instances across organizations where executives and individuals in managerial positions refused to integrate the suggestions of the decision support systems due to a visible lack of trust and as a result, failed to reap remarkable outcomes, in return. Taking into account the importance of data in making business-driven decisions, the article, therefore, recommends adhering to the findings of the research. Merely re-curating the age-old patterns and replacing them with new tools will not help in delivering the required solutions. Rather, well-framed decision support systems, supported by well-articulated information about the importance of data in making business-driven decisions, is the pathway to invoke change and achieve optimum results, one step at a time.