Data-based decision making is discussed daily in companies. That is due to the growth of data-driven culture, which encourages the use of collected metrics to generate innovative insights in the market.
But although many business owners emphasize the importance of using data visualization tools, few companies really know how to work with the information. In other words, the advice is good, but it is not practiced correctly.
Against this backdrop, we see many business owners making decisions based on assumptions. And believe me, the lack of properly treated, processed, and handled data is such a serious problem that it can drive a company into bankruptcy.
So if you still do not know how to use data in favor of your business, this article covers the importance of collecting, storing, and handling information. Also, which tools are available to ensure smart data visualization, among other important topics.
Happy reading!
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First of all, what is data for?
The concept of data is tied to collecting and recording information. The values recorded may or may not be numeric, depending on what the system has stored.
Data serves a very useful purpose, given that people need to build strategies and make decisions based on real information, not on theories and assumptions.
In the business market, the more channels an entrepreneur has, the greater the chances of collecting quality data to help make more assertive decisions.
For example, if a bicycle shop's dashboard shows that purple models sell 70% more than yellow models, the store manager can use that information to invest in buying more purple bicycles and brief the sales team on customer preferences.
Why do decisions need to be based on data?
The market keeps insisting that data-based decisions are smarter. Indeed, this hypothesis has been absorbed by professionals across many fields and has been applied in Brazilian businesses.
There are a few factors that truly prove this theory:
Fewer errors
When business owners decide to collect information and use it to their advantage, the number of errors in processes and strategic actions visibly drops.
Imagine a candy store where data professionals noticed that hard candies sell more than chocolates. With that number, the manager can decide to expand the product catalog, bring in other candy flavors, and secure a more significant increase in profits. In other words, the decision was truly well grounded.
Impersonal choices
A huge problem in the corporate market is personal bias. Yes, we know companies need to have their own identity, but that does not mean decision making should be based on what the partners or team members think.
So, to reach consensus and the best possible decision, the ideal is to prioritize data collection and analysis over job titles or someone's authority in the company.
Even if some opinions coincide with the data, that does not mean a given professional is always right. But the information collected is unquestionable.
Real metrics
Data provides real information, collected over a given period and confirmed across different channels.
When decisions are made from hypotheses, the chance of ending up with an error is very high. With numbers, however, that does not happen. Metrics are real and simply confirm the reality of the business.
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Which tools help with data visualization?
Before anything reaches a dashboard, IT professionals need to collect, treat, and store the information, and only then make the data available for visualization and analysis.
If you are looking for a tool to help with data visualization, here are some suggestions:
Power BI: ideal for those looking to create interactive dashboards with countless chart options. Recommended for people with intermediate to advanced knowledge.
Tableau: for those looking to create simple yet interactive dashboards. Great for professionals with basic or intermediate data knowledge.
Google Studio: for those looking to create dashboards with data from Google. Recommended for people with basic to intermediate knowledge.
ERP: a tool that integrates all information in one place. It suits every professional profile because it is easy and intuitive, and delivers all the features needed for good data analysis.
The Useall ERP has excellent features that can help your company accelerate data collection, storage, and handling. Not only that — it simplifies information visualization and contributes to more agile, strategic decision making.
If you are interested, click here to learn more about the solution!
Originally published in Portuguese at useall.com.br.