Most business decisions being made are data driven. If you see huge demand for one SKU being sold you buy more in to replace it and meet that demand. If you notice that 30% of those orders also included the exact same product you could use that to justify a special offer to try and double those additional sales to 60% increasing your ATV (Average Transaction Value).
What is Data Driven Decision Making?
Simply put it is using your available data to justify your next business move. Do it right and those decisions can lead to bigger profit margins but do it wrong and your team can lose all faith in their decisions and lose a load of money.
GIGO – Garbage In Garbage Out
In order to have high quality decisions being made you need to have high quality data to start with. If your data is at best average then your decisions will be average. You need a decent sized amount of data to dig through to find patterns. The more data you have the greater the probability of a good decision being made. However it is not just about the amount of data its also about the quality of the data.
DQS – Data Quality Services
DQS is a service which comes with SQL Server. It allows you to cleanse, match and profile data. It allows you to cleanse data in your Integration Services packages and also integrates with Master Data Services allowing you to perform de-duplication on source data.
For Data Driven Decision Making to work well you must remember that the quality of the data will determine the quality of the decision. The data must be clean, relevant and fresh. If your data is old or stale it will have a detrimental effect on your decision making. For example do not use January 2015 data to predict January 2017 use January 2016 instead.
For more information on DQS check out my post here.
To discuss data quality issues either call us or use our contact us page located here.