It is common knowledge that data improves organisational performance. Businesses use metrics from various sources in the current technology-enabled landscape, including websites, social media, digital devices, and other sources. Managers unlock growth strategies by combining raw data with analytics. And teams are empowered with the information to collaborate and operate efficiently. But the day-to-day implementation of this process requires advanced knowledge and expertise. In this blog, we will cover the basics of data-driven decision-making and elaborate on how you can build this skill set.
What is data-driven decision making?
Every organisation has to make decisions based on data — from selecting product and service offerings to raw material suppliers and selling platforms. When facts, metrics, and insights from the ground inform your business strategy, the chances of goal achievement improve. That’s the guiding principle behind any data-driven task.
Let’s suppose you are working in an eCommerce firm. You want to optimise the retail traffic for changing weather conditions and increase sales. Here, you may consult someone who has experience in this area or you may look at previous sales records for a more scientific approach. But with data-driven decision-making, you can extract the answer from large amounts of data and computer-driven analyses. You can also leverage the insights to make future predictions. This way, it is clear that your findings and solutions are not hinged on whims or fads.
Advantages of data-driven decisions
In today’s connected world, information is an asset. It can help organisations prepare better for uncertainties, understand customer behaviours, and predict future trends. According to Gartner, all kinds of enterprises, big or small, can gain a competitive advantage by building a data-driven culture.
Moreover, evidence-based actions lead to more positive discussions that improve the morale of employees. Team leaders and managers do not have to deal with ego and personality clashes as everything is backed by objectivity. Subordinates also benefit from enhanced transparency and accountability. They feel a sense of control as they can see the goalposts. Overall, the organisation does well to have concrete and measurable goals, which can be revisited or reevaluated in the light of evolving needs.
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How to harness data for business success?
Data is often termed as a revenue generator as it allows businesses to enhance customer satisfaction. Let’s view this from the perspective of the marketing department. Modern-day customers expect brands to go one step ahead while companies want to cut costs. Increasing budgets is not the answer. Instead, you need to derive the best results from your marketing efforts. With quality data and business analytics, it is possible to be both cost-effective and impactful.
A Customer Relationship Management (CRM) system serves as a prime example. It organises customer demographics, buying habits, and other relevant details into a streamlined and shareable format. Further, this information is analysed to create market segments, target customers through personalised campaigns, and generate more ROI from marketing.
Today, data methodologies have also become integral in banking and finance. There is an increased demand for managers who recognise the inner workings of data-backed fraud prevention, risk-mitigating, and timely alerts.
Additionally, data allows senior executives to leverage innovative models for continued growth. For instance, secondary analysis done by the data science team can facilitate the identification of new opportunities for a travel startup during the pandemic. The extraction of user-centric insights can accelerate the growth of an online platform. Here, a case in point is Netflix. The digital streaming service applies statistical techniques and probability analysis to suggest TV shows and movies to individuals. Amazon’s recommendation engine also shows items to customers based on what they have purchased before.
Such business analytics tasks typically involve data collection, data modelling, descriptive statistics (pie charts, graphs, tables, etc.), statistical analyses (T-Test, Analysis of Variance, Multivariate Analysis of Variance, Linear Regression, etc.), among other web analytics skills. And working knowledge of these tools can help professionals from any field in qualifying for high-paying roles.
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Options for upskilling
Analytics Insight reports that companies are looking to acquire skilled talent to navigate through everyday issues with innovative solutions. However, the demand for qualified individuals exceeds the supply. This is another reason why analytics professionals enjoy handsome pay grades across industry sectors. According to Payscale India, managers with business intelligence skills earn an average salary of Rs. 14,79,903 per year.
Whether you are a fresh graduate, entrepreneur, manager, or senior executive with some work experience, training in data analytics and digital skills can transform your career path. It is best to opt for programmes that combine managerial decision making concepts with current industry trends through case studies and projects. You should also prioritise opportunities for one-on-one interaction with the faculty and dedicated student support.
The Executive Management Programme by IIT Delhi can be an excellent choice for those looking to build their strategic innovation, analytics, and digital marketing skills. It takes learners through three crucial business functions with comprehensive and industry-oriented modules. The problems and business cases discussed during the course reflect the real-world challenges faced by modern organisations. Moreover, it includes assignments and projects to pave the way for practice and application.
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One of the most appealing factors of a premium education in management is that it demonstrates your abilities to recruiters. Having a standard bachelor’s degree is not enough for most profiles in the job market. You need to showcase your creativity and innovation through postgraduate certifications and hands-on experience. Online courses offer the perfect opportunity to develop such a profile without having to quit your job.
The way forward
By now, it’s clear to you that data-driven decisions are the wind beneath the wings of successful organisations in this digital era. From supporting corporate actions to assisting quick steps down to the lowest levels, analytics can enable complete turnarounds in keeping with the evolving realities.
As internet users grow and the penetration of IT and IT-enabled services rises across business sectors, the demand for analytics talent would only increase. For example, sales and marketing departments would need competent professionals to understand their audience better, while operational teams would want to fine-tune daily tasks.
In summary, this blog explained the nuts and bolts of data-driven decision-making and discussed how it could boost the performance of every organisation. If you want to be a catalyst in making that happen, IIT Delhi’s management program is a fantastic choice for upskilling.
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Q1. Why is it important to make data-driven decisions?
Basically, data-driven decision-making refers to the practice of achieving key business targets with the help of analysed and verified data instead of just throwing a stone in the dark. Of course, the data must be accurate and relevant to what your business goals are to extract maximum value. Data-driven decisions are vital because they help businesses with real-time understanding and forecasts to optimise performance. In this way, data-driven decision-making helps validate the success of various strategies and make informed decisions that encourage sustainable development. Organisations can expect continuous growth, innovation, newer opportunities, and greater adaptability with data-driven decisions.
Q2. Is an MBA from IIT different from an MBA from IIM?
Most of us know that IITs primarily offer courses related to engineering only and IIMs offer management courses. But that is far from the reality – IITs also offer management courses, which are equally prestigious and lucrative as those from the IIMs. Pursuing a course in management from any IIT is an excellent choice, and you can choose from a wide range of MBA specialisations as per your preference. The main difference is that the IITs have introduced management programs only recently, whereas IIMs have existed for a much longer span of time. Also, the IIT MBA curriculum structure comes with an approach that is different from that of the IIMs.
Q3. How many IITs are there in our country?
The IITs or the Indian Institute of Technology are one of the most prestigious and elite educational institutions in India and across the world. Today, there are 23 IITs in our country, with more than 16000 seats for aspirants at the undergraduate level. Many people think that IITs, owing to their name, offer only engineering courses, but that is not wholly true. The IITs offer several other courses besides B.Tech, like B. Plan, B. Arch, M. Sc., and MBA. However, not all the IITs offer management courses; as of now, only 8 IITs offer MBA programs.