Management - The importance of data-driven decision making to maximize profits and minimize costs
Management has the need to make more accurate decisions in the shortest time possible, thanks to computer systems this is a reality without the need of making millionaire investments, allowing access to opportunities, regardless of the size of the business, it is simply necessary to find human talent that doesn't focus on spending money on trends or poor technologies offered by large suppliers.
Studies (KPMG, 2020) point out that data analysis is being used to improve operational efficiency and increase performance, increase process efficiency and support human resources. Once the company has computer systems, such as accounting software, or CRM (Customer Relationship Management), to name a few, it must begin to organize and plan on doing data analysis, as it allows the company to increase sales, reduce costs and optimize productivity.
When a company begins to venture into the formal world of decision making through data analysis, this is known as Data-Driven. Decision makers should know that data analysis will not replace what some call "instinct", rather, it is a complement to make more accurate decisions in less time, reflected in more sales with lower expenses.
It is not surprising that, according to global studies by KPMG, 90% of Finance organizations consider advanced data analytics (D&A) as a high or moderate investment priority, and 85% of CEOs believe that the greatest opportunity to increase profits and CFO's lies in the use of Data Analytics to identify measures that facilitate profitable growth.