Data-Driven Decision Making Enables Increased Productivity
By Irem Radzik on May 13, 2011
We all talk about how much more data there is out there now and how much more there will be in the coming years. There are many discussions how this trend creates a major challenge for the data management infrastructure and which technologies are a good fit to address them. How about discussing what type of opportunity this trend creates for organizations? Fortunately a new research study and its results were announced recently on this topic.
Erik Brynjolfsson, an economist at the Sloan School of Management at the Massachusetts Institute of Technology, Lorin Hitt— a professor at the Wharton School of the University of Pennsylvania— and Heekyung Kim, a graduate student at M.I.T., studied 179 large companies to research how data-driven decision making impacts organizations. “Data-driven decision making” was defined primarily by how they collect data across the enterprise, and how it is used in making business decisions. They assess organizations’ ability to make decisions based on data and analysis, and how this practice impacted their business.
The study concluded that organizations that employ data driven decision making achieve 5-6 percent increase in output and productivity. These results are impressive, however, to me, not surprising at all based on what we hear from Oracle Data Integration and Oracle Business Intelligence customers. For example, one telecommunication customer that uses Oracle GoldenGate for real-time data integration along with Oracle Business Intelligence EE in their call center reports that they decreased average response times, and now achieve faster call resolution. Other customers report that leveraging analysis with timely data helped them increase their up-sell and cross-sell rates when they run “smarter” campaigns to their customers. These are real-life examples how data can turn into asset and information overload can bring concrete opportunities to help achieve business goals.