Here’s a look at what it means to be data driven versus data informed, and the pros and cons of each.
Data driven: When data informs the decision making process
In a data driven business, data leads the decision making process. In other words, decision makers see data as the Holy Grail from which they can extract information to steer the business. Data driven businesses use data across the whole organization – from sales and marketing to IT, warehousing, and so on.
- Decisions are entirely evidence-based
- Data-based decision making encourages information to be up-to-date and data to be examined
- Evidence-based decision making helps foster long-term success and innovation
- Data is trusted blindly without interrogation into the numbers
- Low-quality or inaccurate data can lead to misinformed decisions
- Handling complex data streams require skill and ongoing input
Generally speaking, the bigger the company size, the more difficult it is to be truly data driven due to the sheer volume of data that needs to be analyzed.