In business, knowledge is power- just as it always has been, and most likely always will be. Over the course of the evolution of the internet there has been an explosion of information, which has led to many new opportunities for organizations, but it also implies many new complex challenges. The amount of information available to companies today is staggering, but it is still only a portion of the information needed to build a successful corporation. This has given rise to an interesting discussion about the importance of being “data-informed” rather than “data-driven”.
The term data-driven describes businesses and organizations that rely solely on cold hard data in their decision-making processes. Here, organizational experience and human instincts plays a less prominent role.
On the contrary, being data-informed is about a balance in which your expertise and understanding of the information plays as great a role as the information itself. It acknowledges the importance of basing decisions on multiple information sources and the importance of putting the collected data in a specific context.
At Previro, we help organizations become more data-informed by offering our clients valuable business insights and access to unique expertise through, for instance, interactions with industry professionals. For clients evaluating potential acquisitions or approaching new industries, segments or product lines, this is an exceptional way to better understand the new context and gain expertise and experience. By doing so, clients can get customized insights into areas where big data is not readily available, or complement the collected data with personal experiences, and thus protect themselves from making merely data-driven decisions. In all, it creates a better and more solid foundation for decision-making, allowing our clients to take more well-informed decisions with good stewardship of their resources.
Sources: Forbes (2016), Cleverism (2017), Previro.com (2017)