Analysis paralysis is not the only reason why an abundance of data still fails to enable better business decisions. Data has contextual limits that must be considered. In an article for Business 2 Community, Kaan Turnali discusses five other reasons that data fails to yield the right insights:
- Data is only raw material for better-informed decisions.
- Technology alone can’t deliver better decisions.
- Lack of leadership results in lack of direction and consistency.
- Enterprise data demands integrated data strategy.
- Data must be paired with the right questions.
More data paints a wider picture of a situation, which is good. But a wider picture still might not be wide enough to relay the best answers to a problem, and it is important to realize that there are times where not enough data even exists to identify a really great solution.
Furthermore—and as many sensible leaders know—technology is only as good as the people using it. It is typically up to individuals and their interpretations of data that make the difference in business. Similarly, it is up to leaders to inspire a data-driven culture in the business. They must understand the benefits and be able to communicate to others that, yes, it will be worth the hassle to adapt to this new mindset. These data-driven mindsets, coupled with an understanding of business, will enable employees to ask better questions. This is probably the most important part, because if people are not asking the right questions in the first place, then the answers yielded might not really matter.
Lastly, Turnali says this about integrated data strategy:
The step to deliver reports on more data—Big Data or small data—alone isn’t synonymous with better or better-informed decisions. In order to deliver the true business value of business data, organizations need to formulate a carefully thought-out enterprise data strategy. The data intelligence framework can’t exist separately from or independent of the organization’s business or technology strategy.
You can view the original article here: https://www.business2community.com/business-intelligence/5-reasons-data-doesnt-guarantee-better-decisions-01927559