Business management based on the Data-Driven model has quite definite advantages. If such processes are built correctly, they are able to predict the best moves for the company's development. To do this, the system must have access to a large amount of current data, which will make it possible to evaluate the effectiveness of decisions made based on this information.
But it also happens that Data-Driven Marketing is not needed by an organization where employees work perfectly. A popular example is the analysis of food orders by a restaurant chain. According to the Pareto rule, 20% of these companies competently take goods from the best suppliers, while 80% do it mediocrely. The minority of establishments that work well are unlikely to need analytics. People are already interested in their work.
There are unpredictable the benefit of using our database factors that can cause the best restaurants to get into trouble. For example, an unexpected banquet for which the products were not ordered. But the system could not predict such a situation. But for the 80% of restaurants that do not work so well, the Data-Driven system will clearly benefit.
Here's another example. In some companies, a whole staff of top managers is engaged in purchasing. Usually, this is 20-30 employees, sometimes their number can reach 50 people. Managers and their subordinates analyze the figures and place orders based on their personal experience and attitude to work. If you use the Data-Driven approach, the company will clearly win.
The Data-Driven system will immediately reveal weaknesses in the distribution of work, such as the performance of the same functions by different employees. The lack of competent specialists will also become obvious.
Data-driven solutions are needed to relieve employees of some of the routine work and give them the opportunity to communicate with people, increasing, for example, customer loyalty .
Application areas of the Data-Driven approach
The Data-Driven system will allow the organization to optimize the work process itself and intelligently distribute employees according to rational need. Now the numbers and analytics will be handled by a computer program. Therefore, managers and their assistants will be able to invest more labor resources in directly solving work tasks, such as communicating with clients and suppliers.
Data-driven in management
Data-Driven Management provides the manager with new approaches to the company's development. After all, analytical data can tell what customers prefer or want, how to reduce the cost of purchases, where to find new consumers of the product, how to increase brand awareness, etc.
Data-Driven translation has the following: "Data-driven", "Based on data". As a rule, information is received in real time. It is always relevant, which allows you to promptly respond to market changes. The concept of Data-Driven Business is often used when talking about such market giants as Google, Walmart, Burger King, etc. Large corporations more often than others use this approach to optimize their work. But for medium-sized businesses, the Data-Driven method will also be relevant and will improve the company's work.
Data-driven in management