Example for data-driven decision making

Today's largest and most successful organizations use data to make high-impact business decisions. To better understand the benefits of data and how you can integrate data analysis into business decision-making processes, let's look at the success stories of a few well-known companies:

1. Starbucks- Real Estate Decisions After the company had to close hundreds of coffee shops in 2008, it decided to place a much greater emphasis on data and data analytics. Together with a couple of geolocation analysis companies, they are (currently) analyzing the demographic and traffic data of the location of future investments. The company uses this information to calculate the probability of success of the planned store.

2. Google - Executive training The tech giant has always placed a strong emphasis on "people analytics." One such well-known analysis came as part of Project Oxygen, when the company used more than 10,000 performance reviews and employee behavior rates to identify common behaviors of high-performing leaders. . Based on these, he was able to create training programs to develop these competencies, which raised the average favorability score of the managers from 83 to 88 percentage points.

3. Amazon - Sales increase Amazon uses the data to decide which products to recommend to customers based on their previous purchases and search habits. Instead of blindly recommending a product, the company uses data analytics and machine learning to power its recommendation engine. McKinsey estimates that in 2017, 35 percent of Amazon's consumer purchases can be linked to the company's recommendation system.

So why is data-based decision-making worth it? Because with its help, you can find out where costs can be reduced, you can find more complex relationships both inside and outside the company, and you can increase efficiency, since you can make predictable decisions with full knowledge of the past!