The Importance Of Data Analysis In Decision Making

Have you ever wondered how you could improve your company’s performance, optimise your resources, increase your sales and retain your customers? The answer is in the data. Data is the most important asset of any business since it allows us to better understand our environment, market and target audience. But it is not enough to have data, and you have to know how to analyse and use it.

Data analysis is transforming data into useful information for decision-making. Thanks to data analysis, we can identify problems, opportunities, trends and patterns that help us improve our strategy and achieve our objectives.

In this post, we will show you the steps to make decisions based on data effectively and the type of data analysis that you can start to carry out. If you want to discover how data can boost your business, don’t miss this article!

Steps to make effective data-driven decisions

To get the most out of your business data and reap benefits, following these steps can help you find the “who, what, where, when, and why.” 

• Identify the company’s objectives:  This step should include the objectives that your organisation’s executive management has for the future. This will allow you to determine what data to analyse and what questions to ask so that your analysis supports your business objectives.  
• Collect and prepare the data you need:  Accessing quality, reliable data can be very difficult if your business information is found in a series of disconnected sources. Once you know the number of data sources available across the organisation, you can start preparing the data. 
• See and explore the data: Visualising it is essential for making decisions based on it. Representing information in a way that creates visual impact, such as interactive charts, gives you a more accessible way to spot and understand trends, outliers, and patterns in your data.  
• Develop information to ask and answer questions about the data and, once discovered, take strategic action by interpreting the data.  
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What data analysis can you do?

Once the previous steps have been carried out, it is time to interpret them to make coherent decisions. We know that this is not an easy task. Therefore, we explain what types of analysis allow you to carry out this process simply and efficiently.  

Descriptive analysis:  It aims to summarise a large amount of data and records so that they can be understood and measures can be taken that adapt to the organisation’s objectives.  

Predictive Analysis:  This type involves applying mathematical or statistical techniques to predict what could happen and anticipate problems.  

Prescriptive analysis:  This analysis is perfect for establishing the path your company can follow and counting the actions that help make decisions.  

Make decisions based on real-time data with Power BI.

Microsoft Power BI is the leading Business Intelligence solution on the market. Not only do we say so, but also Gartner. This tool has allowed the introduction of data culture in more than 250,000 organisations, helping them to make decisions based on data. 

Power BI allows you to dynamically and interactively create reports and dashboards from any data you want to analyse in your company. In addition, the databases you work with can be internal and external to the company. For example, internally, we could make a report from a simple Excel file saved locally or take the information collected by a CRM or an ERP. 

Why bet on this solution?

1. Provide all users with relevant information through intuitive tools. 

2. You can see all the data from anywhere to get complete visibility and make better decisions. 

3. Combine Power BI and Azure Synapse Analytics to work faster and lower expenses.

4. Quickly update, export, and distribute Power BI reports using Power Automate.

5. Increase data protection policies to provide security that monitors and mitigates threats.

6. It Makes it easy to connect, prepare, and model data using machine learning.

7. Connect to Power BI Mobile from any device to make decisions when you want.

8. Allows you to rely on local and cloud data sources to share your reports and collaborate more easily.

9. Through the forum, you can find out about the latest updates and thus improve the features and capabilities of Power BI.

10. Create a data-driven culture to experience high ROI.

As we see, data-driven decision-making has transformative power as you get clarity when needed. If you need help, please contact our team by calling +442071932502 or by writing to  info@dynamicssquare.co.uk.

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