DATA DRIVEN DECISION MAKING- FROM THEORY TO PRACTICE

Abstract

Applying scientific method in business decision making contains properties like data evidence, analytical reasoning to make informed choices, reducing risk and improving the outcome. This type of approach is known as data – driven decision making. It relies on systematic `processes like identifying the problems of that business, formulating hypotheses, conducting experiments, analysing results that we found and drawing conclusions. Making decisions based on data goes beyond just relying on guesses or personal opinions. Instead, it uses the detailed analysis of data to support choices. This approach emphasizes the importance of collecting, cleaning, and interpreting relevant data to inform strategic and operational decisions. The journey from theory to practice involves understanding the fundamental concept of data driven decision making, aims of DDDM, applications of DDDM and key steps of DDDM Management. Implementing a data-driven culture enables organizations to enhance efficiency, moderate risks, personalize experiences, and ultimately achieve better outcomes by basing their actions on verifiable facts rather than assumptions.