“Data-driven” is a business term that refers to the utilization of data to inform or enhance processes, decision making, and even the revenue model.In recent years, a data-driven business approach has gained a great deal of traction.It is true that every business deals with data — however, data-driven businesses systematically and methodically use data to power business decisions.This practice contrasts with decision making that may be driven by emotions, external pressure, or instinct.The reliance on data offers several benefits:
Decisions can be made based on evidence instead of feelings
Data analysis offers actionable insights into a variety of areas, both internally and externally
Data-driven intelligence provides a competitive advantage
Data-driven business functions can be seen across many departments.Companies undergoing digital transformation can see effects in:
Business intelligence
Competitive intelligence
Marketing
Customer care, service, and support
HR
Finance and accounting
These are just a few examples. Data-driven business practices can be applied across an entire organization in many ways.Though such approaches offer the potential for more objectivity, correct implementation is a prerequisite. Lack of data integrity or incorrect assumptions will only generate bad results. When properly implemented, however, data-driven approaches can improve insights, decision-making, and results, in virtually any department.
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