How Data Is Important For Entrepreneurs In Decision Making

I feel compelled to write about the relationship between Big Data or Data Analytics and organizations after being involved in a study with a GIS expert in the project “Big Data and Geographical Information System in Decision Making Process.”

Big Data has become a new field that requires information collection and system integration. The development of Big Data has attracted the attention of academic experts, and government and private sector entrepreneurs.

The study found that information collected as part of the strategic planning process can shape organizational strategies. Some organizations see Big Data as a tool that can help in decision-making and strategy, while academic scholars use it as a basis to confirm existing models and theories.

Big Data can help gain business insights and competitive advantages, and transform the overall business processes. The data explosion on the internet is an opportunity that anyone can access. But, is Malaysia ready to utilize this diversity of data?

In Microsoft’s latest study, the Asia Data Culture Study, it was revealed that 85% of decision-makers in companies feel the need to advance their business through data use, but only a small portion has started preparing themselves with a digital strategy for it.

Here are 5 things about data that can hopefully benefit businesses:

• Better decision-making in business continuity
• Making decisions more accurately
• More efficient company operations
• Improved and simplified processes
• Increased customer satisfaction

In addition to the opportunities offered by Big Data, some serious legal risks related to data privacy issues that result in breaches of secrecy or trust need to be considered by entrepreneurs.

Entrepreneurs and decision-makers need strategic and holistic planning to identify opportunities, overcome barriers, and manage the risks to use Big Data. Entrepreneurs need transformation and collaboration that is familiar between several functions and changes the way of thinking and need to preserve the culture of Big Data in all employees to ensure they truly master it.

Organizations need to see that IT is no longer just a department but IT expertise and knowledge need to be seen as a culture and backbone of the company.

I would like to suggest 10 actions for entrepreneurs:

1. Create a Business & Market Intelligence Unit or Department
2. Update Customer Database Management
3. Use data to maintain information to understand “Customer Buying Patterns”
4. Cultivate in your organization the importance of Market Intelligence and the importance of Data Management.
5. Try implementing Data Analysis to unravel “Competitor Analysis” issues.
6. Company decision-makers or “Decision Makers” need to make the company “Data-driven” in all decision-making for any “Product Development”, “Market Expansion”, “Human Capital Planning” and strategy making to see competitor actions.
7. There needs to be a process of digesting and filtering data every month.
8. Training and emphasis that this data is not only preserved at the IT level but there needs to be a culture about the importance of data for the entire organization.
9. Start with a “simple” data format or template and gradually develop a more complex format.
10. Get guidance on implementing a “Data-Driven Decision Making” culture for your organization.