"Good data drives good decisions, and good decisions make a good business."

Perhaps a good question to start off with is 'How do data driven decisions differ from decisions made on intuition or experience alone?'

Your intuition and experience will always have a place in the discussion however, when a big decision needs to be made and that decision carries risk it's crucial to have data behind that decision-making.

"Use data to de-risk decision-making."

If we agree that the outcomes within your business are all determined from decisions, we may also agree that data is required to make those decisions.

"It’s not just about having data; it’s about having good data."

Businesses collect large amounts of data and a lot of it we don't use. I'm going to call this ‘data waste’.

"Reduce data waste where possible."

Data which is not used to either make decisions or to drive a business outcome, is most likely ‘data waste’.

To avoid drowning in useless data, understand what’s necessary and ensure it’s accurate and relevant.

Last year I read Michael Porter’s competitive strategy. Throughout the text he spoke a lot about the value chain. He said that if you take a look at businesses you will see that they are just a series of activities, and these activities are either done by a person or a system. At each point in the journey data is collected and a decision is made. Because of this, it's important to make sure high quality data is being collected. You can manage this in several ways. The first is by clearing out the data waste. The data that is not required to make decisions. Secondly you identify what data you need to drive decisions. Go through your data with a fine tooth comb and ask; how do we collect this data? Where does this data come from? Does this data take a long time to collect? Is there a room for human error?

Data is pointless if you are doing nothing with it. That leads nicely onto our next topic. ‘Data analysis’.

There are many ways to analyse the data in business today and there isn't a one size fits all approach. For those who have inherited legacy systems you may be faced with a challenge of poor data, or limitations around extracting data. Choosing the right tool often depends on what your business needs and the kind of data you’re dealing with. I suggest partnering with software providers that allow you to connect via APIs or offer seamless integrations with the rest of your technology suite.

If you’re a small business, you may often look past technology, but building a solid foundation and good practice will always serve you well. Leveraging data effectively with limited resources can be a challenge, but it doesn’t have to be a complicated approach. Look at what you are processing. What information is an absolute requirement to deliver your services and understand how you are capturing that?

• Do you need to capture trends to predict how your business should be shaped in the near future?

• Are you capturing customer feedback or customer requirements?

• Can you run trends on that?

• Can you implement reports to know how much stock you will need next month?

• Can you understand how many services and products are having the most issues?

• Are you calculating the cost to serve?

These things are important to know at the start especially. Don't neglect the data. It can help you pivot and it can help you make better decisions to scale your business.

"Don't neglect the data."

Customers are at the centre of every business, therefore you should leverage data to identify and understand customer sentiments. ‘How are my customers feeling and what do they think about the services we provide.’ I will provide an in-depth view on customer sentiment reporting in a later article, but here I will say that automated feedback emails are not enough. You need people talking to people to get a true understanding of how your customers are feeling, and what their opinions are. After that conversation, the notes and feedback need to be distributed and actioned. The visibility and traceability of that data is a key point to focus on.

"You need people talking to people to get a true understanding of how your customers are feeling, and what their opinions are."

Just as there are many benefits to good data, there are also multiple risks associated with poor data, though these can be mitigated. It's fair to say poor data management will increase the chances of poor decisions being made. Not only that but when poor data is within your business it breeds inefficiencies across your organisation. Data is one of the pillars of business. If you have poor data management, what this really means is you don't have your affairs in order.

There's a saying ‘a tidy desk is a tidy mind’, that can be paired with data. If your data is tidy, it's clear, it's high-quality and it's reportable. When your data is good, you will have the headspace to make good decisions.

"Good data is accessible, understandable and actionable."

Good data in business isn’t just a nice to have; it’s a must for making informed, strategic decisions that keep you ahead of the competition. Whether you’re running a startup or a mature company, good data practices can help you minimise risks, understand your customers better, and make decisions that are not just guesses but informed choices.

Still reading?

I have something I want to share.

I’ve been thinking a lot about how data is organised and accessed in business recently.

I’ve been thinking a lot about the use cases for AI, CoPilots and how these new tools are shaping the modern workforce.

The majority of businesses are not ready for the monumental shift in how data is used.

It is about to become more important than ever to get your data organised and in accessible systems.

I spoke in a recent article ‘change is coming’ that software you use will have a new layer to it's interface, that being AI Assistants or alike.

Having your data in order will prepare you for this new way of working, where AI does the groundwork. It will analyse, read, action and even end up speaking to your customers (with your voice).

This is no longer fairtales, this is real technology, which is not even a decade away.

The reason I wanted to share the importance of data with today's readers is that there is still time to make these changes. Businesses that plan and act today to build the foundations for next year's technology will be the ones that, in Sam Altman’s words, don't get ‘steamrolled’.

"Good data drives good decisions, and good decisions make a good business."

Perhaps a good question to start off with is 'How do data driven decisions differ from decisions made on intuition or experience alone?'

Your intuition and experience will always have a place in the discussion however, when a big decision needs to be made and that decision carries risk it's crucial to have data behind that decision-making.

"Use data to de-risk decision-making."

If we agree that the outcomes within your business are all determined from decisions, we may also agree that data is required to make those decisions.

"It’s not just about having data; it’s about having good data."

Businesses collect large amounts of data and a lot of it we don't use. I'm going to call this ‘data waste’.

"Reduce data waste where possible."

Data which is not used to either make decisions or to drive a business outcome, is most likely ‘data waste’.

To avoid drowning in useless data, understand what’s necessary and ensure it’s accurate and relevant.

Last year I read Michael Porter’s competitive strategy. Throughout the text he spoke a lot about the value chain. He said that if you take a look at businesses you will see that they are just a series of activities, and these activities are either done by a person or a system. At each point in the journey data is collected and a decision is made. Because of this, it's important to make sure high quality data is being collected. You can manage this in several ways. The first is by clearing out the data waste. The data that is not required to make decisions. Secondly you identify what data you need to drive decisions. Go through your data with a fine tooth comb and ask; how do we collect this data? Where does this data come from? Does this data take a long time to collect? Is there a room for human error?

Data is pointless if you are doing nothing with it. That leads nicely onto our next topic. ‘Data analysis’.

There are many ways to analyse the data in business today and there isn't a one size fits all approach. For those who have inherited legacy systems you may be faced with a challenge of poor data, or limitations around extracting data. Choosing the right tool often depends on what your business needs and the kind of data you’re dealing with. I suggest partnering with software providers that allow you to connect via APIs or offer seamless integrations with the rest of your technology suite.

If you’re a small business, you may often look past technology, but building a solid foundation and good practice will always serve you well. Leveraging data effectively with limited resources can be a challenge, but it doesn’t have to be a complicated approach. Look at what you are processing. What information is an absolute requirement to deliver your services and understand how you are capturing that?

• Do you need to capture trends to predict how your business should be shaped in the near future?

• Are you capturing customer feedback or customer requirements?

• Can you run trends on that?

• Can you implement reports to know how much stock you will need next month?

• Can you understand how many services and products are having the most issues?

• Are you calculating the cost to serve?

These things are important to know at the start especially. Don't neglect the data. It can help you pivot and it can help you make better decisions to scale your business.

"Don't neglect the data."

Customers are at the centre of every business, therefore you should leverage data to identify and understand customer sentiments. ‘How are my customers feeling and what do they think about the services we provide.’ I will provide an in-depth view on customer sentiment reporting in a later article, but here I will say that automated feedback emails are not enough. You need people talking to people to get a true understanding of how your customers are feeling, and what their opinions are. After that conversation, the notes and feedback need to be distributed and actioned. The visibility and traceability of that data is a key point to focus on.

"You need people talking to people to get a true understanding of how your customers are feeling, and what their opinions are."

Just as there are many benefits to good data, there are also multiple risks associated with poor data, though these can be mitigated. It's fair to say poor data management will increase the chances of poor decisions being made. Not only that but when poor data is within your business it breeds inefficiencies across your organisation. Data is one of the pillars of business. If you have poor data management, what this really means is you don't have your affairs in order.

There's a saying ‘a tidy desk is a tidy mind’, that can be paired with data. If your data is tidy, it's clear, it's high-quality and it's reportable. When your data is good, you will have the headspace to make good decisions.

"Good data is accessible, understandable and actionable."

Good data in business isn’t just a nice to have; it’s a must for making informed, strategic decisions that keep you ahead of the competition. Whether you’re running a startup or a mature company, good data practices can help you minimise risks, understand your customers better, and make decisions that are not just guesses but informed choices.

Still reading?

I have something I want to share.

I’ve been thinking a lot about how data is organised and accessed in business recently.

I’ve been thinking a lot about the use cases for AI, CoPilots and how these new tools are shaping the modern workforce.

The majority of businesses are not ready for the monumental shift in how data is used.

It is about to become more important than ever to get your data organised and in accessible systems.

I spoke in a recent article ‘change is coming’ that software you use will have a new layer to it's interface, that being AI Assistants or alike.

Having your data in order will prepare you for this new way of working, where AI does the groundwork. It will analyse, read, action and even end up speaking to your customers (with your voice).

This is no longer fairtales, this is real technology, which is not even a decade away.

The reason I wanted to share the importance of data with today's readers is that there is still time to make these changes. Businesses that plan and act today to build the foundations for next year's technology will be the ones that, in Sam Altman’s words, don't get ‘steamrolled’.