Data-driven decision making

Big data importance is on the rise as the attention of most industry are now laser-focused on it including use cases applying artificial intelligent frameworks and algorithms. Senior management and top executives across the globe are currently seeking expert guidance for big data analytics and AI best practices and a greater understanding of its role in strategic decision making. The increasing power afforded this group of managers by big data analytics results within their various organizations will have a significant effect on corporate strategy. Although the importance of data is not in doubt and, often considerable investments in data collection, storage, and analytical tools, many executives are unsure of how to handle the growing influx of data and how to properly use them internally for a competitive value.

The predominant questions are those around, what to collect, how best to manage, codify, and store this data; how to analyze and interpret the same; and how actionable insights can be utilized effectively. The ability to answer these questions will most definitely support organizational management in the deployment and future usage of its big data analytics investment for greater success(Mazzei & Noble, 2017). As data production and organizational ability to capture the same grow in leaps and bounds, digital transformation promises a steady shift of the strategic landscape of businesses and the evolution of innovative new business models. While big data approaches and innovations are gradually becoming mainstream in business environments, the management field to say the least completely ignores the serious competitive advantages and strategic business value implications.

According to Mazzei et al. (2017), while the dialogue in management literature revolves around the effect of big data on management research, the discussions continue to center around new modes of data collection and analysis. Unfortunately, management scholars have failed to see the bigger picture of the capabilities of big data and the potential shifting of organizational decision making and strategic posture. “The uses for data are shifting as collected data helps to determine what markets to explore and how consumer trends are changing, and the data can drive these determinations in real-time. We are seeing firms take on non-traditional markets, leveraging their data and analytic resources– — in conjuncture with massive amounts of human and financial capital– — to upend traditional barriers to entry. The ultimate goal of big data movers and innovators is to build greater knowledge and dynamic capabilities and to apply the benefits of big data analytics in a way that creates unique and sustainable competitive advantage through the development of diverse ecosystems and data flows. Through these advances in the consumption and application of big data, competition and competitive forces are being redefined. We further this conversation through the introduction of a new framework, which outlines three distinct approaches for how organizations can embrace and use big data(Mazzei & Noble, 2017, p. 3).”

The data-driven leadership concept is fast becoming the norm and motivation for many industry leaders to leverage the value proposition of big data. However, as always the case, a data-driven leadership style does not suffice but by encouraging a cultural shift within the enterprise that priorities a top-down and bottom-up culture driven by data.

Reference

Mazzei, M. J., & Noble, D. (2017). Big data dreams: A framework for corporate strategy. Business Horizons, 60(3), 405–414. doi:10.1016/j.bushor.2017.01.010