While the need to collect data is drives business performance, many entrepreneurs say we are experiencing an information overload. It is a genuine concern as we are bombarded on a daily basis. Some psychologists would even say that having too much data causes procrastination. In addition, it may cause some entrepreneurs to feel overwhelmed. In many ways, we are drowning in data.
It’s interesting to note that astronauts were able to land on the moon in 1969 using a small fraction of the data that most laptops and smartphones contain today! In business, we are starting to require tools such as a check scanner API in order to process the vast amount of data we have to handle. There are, however, a number of ways we can use data to drive business performance. While the amount of data we’re producing is growing, it does not have to be overwhelming.
Decision Making
Data can be used to back up decisions with tangible evidence. It provides a neutral tool when opinions are varied or where emotional aspects of a decision take over the logic. In this way, data is neutral and therefore of itself, it is pure. However, data can be manipulated. Used wisely, data can help owners make well-informed decisions that reflect the objective reality of a business situation without any emotional context.
Hiring Decisions
In a similar vein, data can enable smarter hiring decisions. Instead of relying on personal interactions, past data can help determine future performance. Data-driven decisions can be made using algorithms that amongst other aspects can predict the engagement of potential employees. It can also show how they will interact with other team members. This data is often collected using personality type questionnaires.
Competitive Advantage
Analytics and data mining can also help ensure a company retains its competitive advantage. By efficiently calculating key market trends and competitor analysis, companies can make faster decisions. This becomes particularly beneficial when linking into POS Systems in a retail context.
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