Business in the cloud runs best when data drives decisions. Business is no longer comprised of processes of people as resources. Cloud computing killed the assembly line…as a useful analogy. Cloud computing disappeared linear and replaced it with network. Cloud computing integrates, creating systems of systems, so now we think that way. Cloud computing rubbed away friction leaving ubiquitous communication as the value creator. Cloud computing amped forecasting, so decisions moved to the fore.
The Value of a Data Drives Decisions Approach
Data should drive decisions because we are now in the knowledge economy. According to a regular study by the consultancy Ocean Tomo, over 84% of the value of the S&P 500 is based on intangibles. We need a new definition of a knowledge based business.
Business is high impact decisions driving communication to create customer value.
High impact decisions are the knowledge economy equivalent to the traditional views from Milton Friedman to maximize profits, but allowing for social good, as well as for profit enterprises. The term “communication to create customer value” recognizes Peter Drucker’s advice to focus on the customer. The term also acknowledges that communication is the active instantiation of knowledge. In this view, decisions create greater value and differentiation from the inherent knowledge value of employees, partners, vendors, the market, and customers.
How Can Data Drive Decisions?
Decision engineering is a new discipline that combines engineering concepts with systems thinking and network analysis to help decision makers answer with confidence, “If we take action X, what will be the outcome?” We have lost sight that it is decisions that propel or slow the business. Greater value can be attained at the moments where the communicated knowledge of the business arrives at an inflection. The proverbial fork in the road. These forks happen constantly and across the enterprise. However, with a consistent, disciplined approach, and supported by decision support aides, optimum decisions can be selected at all levels. The components of decision engineering meld extremely well with machine learning approaches that can harness big data to help answer, “What is the likely outcome?”
How Can We Help You
Take2 Consultants has developed a model to help organizations implement a data-driven decision making framework to running the business. You can get started by watching our course, Data Curation for Decision Making, on the Experfy platform. Contact us to get started.