June 12, 2021

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Data-Driven Decision Making – Pros and Cons

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In this world of Predictive Analytics, Data-driven decision making breathes facts, not theories. When decisions are made on the basis of hard accumulated data, it ensures more accuracy and efficiency in the produce. One of the popular modes of decision making in industries, educational institution, service sector, etc., it has become a must-have element among the decision makers. The main reason behind this is the huge data that has become available in the market for people. Its accessibility has become so easy, that it has aroused the interest of even start-ups. This is how a decision based on verified data is best for you.

It takes you to the correct places

If you don’t have the address and head out to look for a place, then you are just roaming, and not heading somewhere. Data-driven decision making works in the same way. Predictive Analytics will give you direction which helps you take important decisions.

The same way, wrong information can mislead you and one might end up in a bad place after all. The best way to avoid that is to get your data correct. Things are not just accumulated data, but it is analyzed and gone over again and again to make sure things don’t go wrong. Generally these institutions have data systems to access and analyze the data before manpower takes over, which leaves less room for error.

These data systems give you the option to analyze the same data again and again as it is stored in the system which one has access to. The ready material as well as the raw ones are readily available, so in case you have misread, or anything goes wrong, you can go through the process once again.

Is the energy worth it?

Data based decision making requires a lot of energy from your side, which includes time as well as a lot of cost. That is why instead making your process easier, it goes the other way. Also, with the level of data that is left to be analyzed, the transparency level increases. Especially, nowadays the data is for everyone to see, which makes it more difficult to hide important information, and the chances of the data being misused also increases.

One cannot just depend on any one part of the process; everybody has to work together for the right results to come out. If the computer works well and the final decision maker goes on the wrong direction then the whole process would have been a waste. Even sometimes it would happen that the sources from where the data is take is false, leaving the whole process corrupted. Let’s say the whole process went right but bad fate intervened and all went in a puff, because of some rare error. Technology demands little trust from the consumers and one should keep in mind all the possibilities before we set on a data based decision making journey.

Everything has its own pros and cons. The process of your decision making should depend on what type of decisions you want to make. Not all decisions require an analyzed data for reference, while for some, it is the best way. Like in the case of educational institution, student analysis will help you keep a database of the student. Thus the process, should be utilized only when needed.

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