Data driven decision making
Data driven decision making can be defined as the decision making approach which is used to make the decisions based on the verifiable data which can be backed up. The quality of the data driven decision making is based upon the quality of data gathered and effectives of data analysis and interpretation
Usefulness of Decision making tools
The decision making tools those work upon the business data for making the quality decisions are known as decision making tools. These tools are used to conduct the data driven decisions to extract unambiguous, accurate and quality decisions. These decisions are known as real-time decisions and solutions to the real-time problems. They are significant for the business
Different Decision making styles
The data drive decision making tools can help the decision makers to make the decisions following the different styles mentioned as below: -
1. Predictive: Predictive decision making style is rapidly followed by the organization to predict the market growth and risks for the organization. Based on the data visualization, the decision makers make the strategies for the future.
2. Perspective: Predictive decision making style is also rapidly followed by the organizations to understand the perspective of the target customers based on customer data. It is also under to analyze the outcome based on the customer data and to make the decision that how to sustain such customer by offering them best prices and discounts
3. Descriptive: It is the decision making style which is used to leverage the business needs by understanding the overall performance of an organization in the various aspects.
Sources of data
The data based on which the decision are extracted is known as big data. It could be the structured, semi-structured on unstructured data. This data can be sourced form
1. The corporate database
2. Social Media
3. Online surveys etc.
Compare, contrast and critical evaluation of data sources
The sources of this data are known as open and closed source. The source like corporate data is known as closed source and source like social media is known as open source. The corporate data cannot provide the wide view to an organization about its performance. However, social media can be used to provide the broaden view of the organizational performance. Thus, while making the decision, an organization should collect the data from the open as well as closed resources for making accurate decision.
Use of data analytics to identify trends/ patterns in the decision making
The decision making styles are also known as data analytics techniques. These techniques are used to identify the useful patterns out of the big data. Big Data is the high volume data which can be used to insight the useful patterns using queries in tools.
Visualization of the decision-making process, and analytics to support the decision-making
There are two techniques used for the visualization while decision making,
1. Data mining (traditional technique)
2. Business Intelligence (trending technique)