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Decision-Making in Business – How does it work?

Decision-Making in Business – How does it work?

When we think of efficient management, the main point is the decision-making process in organizations. After all, if any mistake is made at this stage, the entire company’s project may fail, causing a series of losses for its managers and owners.

Because of this, all decisions must be made based on reliable data, especially the most critical to the organisation’s future. However, it is necessary that those responsible for the company’s management have access to this data and that they have tools and the knowledge to interpret it.

Considering this, we have prepared this text with some information and guidance to help you in this critical process. Please read the article and find out how the decision-making process works in organizations and what to do to make it more efficient!

What is it and how does the decision-making process work?

As its name suggests, the decision-making process in organizations corresponds to the set of necessary activities which will be taken by the company to be defined.

Among the numerous procedures that are part of this process, we can cite the following as examples:

  • identify a central problem;
  • capture reliable information about the problem in question;
  • based on the data obtained, create viable alternatives to the problem;
  • opt for the most efficient alternative;
  • develop a plan for the solution found to be put into action;
  • monitor the results of the plan and solution in question and verify that they are aligned with the management team’s initial expectations.

Those responsible for the decision-making process need to be qualified and experienced enough to visualize both the advantages of a plan and the risks linked to it.

With that being said, it is interesting that the team of managers is formed by professionals with different qualifications. This is because thanks to the variety of knowledge, the set of professionals will be able to easily identify the problems and opportunities related to the operation of the company.

What to do to make it more efficient?

As mentioned in the previous topic, the most important decision-making process is identifying the problem and capturing data to solve it. The big issue here is that these tasks are not that easy.

Every day, countless data is generated by factors such as the company’s operation, the natural movements of the market in which the company operates in, the research and consumption patterns of its customers, and many others.

While this information is an important source for underpinning decisions and even finding new opportunities, capturing and filtering them so that they become useful data is a process that would take up a lot of employees’ time. Moreover, given the data’s complexity, the human error factor would be present, which would decrease its reliability.

Fortunately today, with the advancement of technology, companies have many intelligent tools to accomplish this task practically and reliably. As an example, we can cite machine learning, one of the most effective technologies for data analysis.

How can machine learning optimize decision-making in organizations?

In a simpler and more summarized way, we can describe machine learning as software designed to find solutions to complex problems or to answer questions related to a specific topic.

The technology has the ability to analyze a series of data, separate it, and thus identify patterns. These skills allow for the machine to learn and thereby make certain decisions on its own.

It is important to emphasize that the learning capacity, and all processes related to it, is the characteristic that makes machine learning so useful for the company’s management team. Continue reading and find out how technology can impact the decision-making process in organizations!

Intelligent data calculation

When a machine learning solution is efficiently integrated into the company’s operation, it can verify data from all areas and sectors connected to it and group it intelligently.

This allows for the data to be used by machine learning itself to check patterns that can identify failures and opportunities.

More agile and reliable processes

Unlike a human being, machine learning doesn’t get tired, so technology can stay up and out 24 hours a day without affecting your results. All software progress is computed in real-time, which drastically reduces the chances of some information being forgotten or incorrectly added.

Also, as agile as employees are, machine learning would take much less time to perform data analysis tasks. This allows information to be made available more quickly to managers.

Intuitive data presentation

Finally, it is important to note that it must be presented in an understandable way to managers for data to be used in decision-making.

We can say that the easier it is for the management team to understand the information at their disposal, the faster they will be able to devise strategies and implement decisions.

In this context, machine learning emerges as an interesting option once again. After all, the technology can be used to filter data according to previously established standards. Once it is integrated into an intuitive interface, managers could view this data in detail in useful charts and indicators.

Thanks to technologies such as machine learning, companies, even small ones, can use data more efficiently. This makes room for them to compete in the market, in a more egalitarian way, with larger companies.

The big issue is that to ensure the effectiveness of the tool, managers must turn to serious companies, known in the market for the quality of their services.

Would you like to count on a team of highly skilled and experienced professionals to optimize the decision-making process in your company through machine learning? Contact us and discover Kazap Technology solutions for your business.  

Data Analytics: what it is and how to use

Data Analytics: what it is and how to use

Data Analytics is one of the tools that should receive the most attention of companies that want to increase their competitiveness in the market. This technology makes it possible not only to optimize your decision-making process but also to map and implement projects and strategies more securely and efficiently.

Are you interested in learning more about this innovation? Continue reading this article and find out what Data Analytics is and how it can benefit your company!

What is Data Analytics?

Data Analytics is basically the process of analyzing all the data and information that makes up Big Data, to identify patterns and insights that can revolutionize the operation of a company.

For example, with the tool, the marketing team can more deeply understand the reality and purchasing patterns of its potential customers. This allows them to create more efficient campaigns, improving the brand image in front of their audience and increasing their number of sales.

Given these characteristics, it is easy to realize the importance of data and information analysis in planning and executing Business Intelligence strategies.

How does this tool work?

Enabling data analysis requires the company to hire Data Analytics experts and provide them with tools such as artificial intelligence and machine learning solutions to start the data mining process.

Once the software identifies  interesting patterns, they are pointed to data analysts, who should use them to inform management and guide various processes.

As technology advances and the information verification process becomes more intuitive, companies have empowered their employees to perform simpler data analysis that doesn’t require as much expertise.

This care opens space for Data Analytics professionals to stay focused on more strategic projects, with the potential to generate greater impacts for the company.

How important is Data Analytics for businesses?

This technology is fundamental for companies, including smaller ones. By more intelligently allocating your resources, you can avoid losses and get better results.

Check out how the benefits of the tool works.

Demand forecast

One of the most important tasks of the management team is to verify the actual demand for their products. After all, when the manufacture of an item is higher than its output, it ends up stuck in stocks, suffering breakdowns and generating costs to the company.

Through Data Analytics,analysts can study a range of useful data, such as historical sales patterns and the current reality of the market, to more accurately point out the amount of items that should be produced. Thus, the company can reduce its costs and optimize the available resources.

Cost identification

Intelligent use of resources also requires that all unnecessary costs and waste be eliminated. The big issue is that some expenses are so diluted in the company’s processes that it is virtually impossible to identify them.

Fortunately, Data Analytics provides the management team with a much more complete view of how the company works and how all resources are used. Given this, it is easier for professionals to detect even so-called hidden costs.

Decision-making

Every day, managers and entrepreneurs need to make a series of decisions with the potential to completely change the situation of the company. For this reason, it is natural that they want access to accurate and reliable information, so that their choices are as successful as possible.

In this context, Data Analytics  emerges as an important source of data for grounding strategies. By making use of it, managers can make smarter decisions, which will avoid losses and bring more positive results.

What analyses can be made in Data Analytics?

Because the operation of a company has several processes, a single solution would not be able to meet all of them satisfactorily. That’s precisely why Data Analytics can run in four different ways.

Next, find out how each of the types of data analytics works!

Predictive analysis

Predictive data analysis uses statistics and data mining to understand how the verified item tends to behave in the future. For example, through it, the management team is able to create sales projections based on the analysis of the consumption patterns of its customers.

Prescriptive analysis

Prescriptive analysis,in turn, makes use of graphs and behavior simulations in order to identify events that are occurring and understand the logic behind them. Using this concept, managers can check, for example, the items and products most demanded by the market at the moment.

Descriptive analysis

Descriptive analysis, on the other hand, uses data mining technology to understand an event that occurs in real time, that is, it can be used to check the latest state of the analyzed item. An example of its application is credit analysis, which requires a verification of the payment terms of the debtor party.

Diagnostic analysis

Finally, diagnostic analysis makes use of solutions in data mining and information correlation, with the objective of understanding an event of the past. This opens space for companies to repeat positive results and avoid crisis situations.

As examples of its implementation, we can mention the preparation of commercial reports or even the study of the stock prices of a given company.

In fact, Data Analytics has the potential to optimize a company’s operation. But it is worth remembering that the success of its implementation is directly linked to the solutions used by data analysts. Therefore, it is necessary to have highly efficient software,  developed by serious and experienced companies in the field.

Now that you know what it is, how it works and how important the data analysis process is, subscribe to our newsletter and stay on top of more issues relevant to your business development!