Data-Driven Decision Making: Its Significance During Crisis

How Data Can Help Decision Making During a Crisis

Data is one of the most valuable resources at a business’ disposal. With the proper application, data-driven businesses have experienced quick and stable growth.

Data-driven decision-making shows how important it truly is during a crisis. Managing a crisis means informed decisions are a must. Not only that, these informed decisions have to be made ASAP. Data analysis is the key to accomplishing that. Today, we’ll discuss data’s benefits during a crisis.

Advantages of being a data-driven organization

1. Quick Decision Making

One of the biggest deterrents to decision-making is the lack of hard data. It’s difficult to make big decisions when you aren’t quite sure about their effects. Data analysis provides leaders with the data they need to make the right choice. For example, if there are clients that you are considering joining up with, it’s important to know how high their ROI would be.

Would a partnership be mutually beneficial? How expensive would such collaboration be? Does this have interleaf with your demographics? What are the logistics of any trading? All of these questions and more are easily searchable with digital data. Decisions are not only faster but also more reliable than ever before.

Learn more about “Why Business Intelligence is Critical In Strategic Business Planning”

2. Unbiased Market Research

Market research is very difficult to pin down manually. Too many factors and biases are at play for any person to make an informed decision. With market data at your fingertips, these decisions are a lot less risky. For example, a product isn’t doing so well in a certain branch. Do you cancel the product altogether?

What if the product’s failure isn’t due to quality, but lack of advertising? Another branch is selling the product just fine. As it turns out, they ran ads on social media. All of these factors are taken into account by market data. It allows business leaders to gain a stronger understanding of their clientele.

3. Real-Time Agility

Data analysis allows businesses to be very adaptable. This is thanks to real-time data analysis. Business leaders can see changes to their profits in real-time. Is a branch doing poorly?  Check another branch’s performance and simply recreate the success there. Okay, it’s not that simple, but it’s certainly faster.

It’s hard to find out what works on instinct alone. Hard data allows leaders to formulate real plans. Not only that, these plans are never static. Accidents happen, opportunities arise, and leaders need to think on their feet.

4. Greater Accountability

Accountability is essential in building trust with employees and customers. To be accountable, you need to have concrete proof of why you made your decisions. It’s much harder to convince shareholders of major changes without solid proof. Data is what allows your business to present changes confidently.

Not to mention, accountability also means a clearer understanding of your end goals. It breeds a culture of data-driven decision-making. Everything is much easier to resolve when everybody is informed. It also has the side benefit of boosting morale. Your data security is insured when people actually know what they’re doing.

5. Risk Management

Risk management is obviously a crucial benefit in a crisis. Data is what lets you know where the most problematic aspects of your business lie. For example, you notice a general downward trend in specific products. Data lets you know the risks of trying to improve it or just leaving it altogether.

Risk management is also easier to do with precision with data. It’s easy to go “oh, this branch is doing poorly”. It’s not so easy to find out what the safest options to fix it are.  Risk management is all about mitigating the adverse effects of any crisis. Hard data is what ensures the effectiveness of your plans.

6. Cost-Efficient

Making decisions costs time and money. Dwelling on a decision is also very detrimental. An opportunity might slip. A problem might suddenly swell beyond fixing.  By being a data-driven business, you spend far less time and, therefore, less money on decision-making. There’s no need to worry about excess costs that slip through your mind. Data makes the decision far less likely to harm your business long-term.


Data-driven decisions are an essential part of a modern business. Don’t expect to see growth without utilizing these. You might even be making data-driven decisions right now. You’re just not doing so optimally. After reading about its benefits, you now better understand how to use data to your advantage.

Learn more about how business intelligence can help implement data-driven decision-making in your company.

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