Learn how to carry out business decision-making
The fate of a company depends on the choices of its managers. If they make bad choices, the enterprise goes under, but if good decisions are made, the organization grows while remaining competitive in the market and with good profit rates. This entire process involves risks and opportunities. Thus, the business decision-making needs to be supported by correct information for the best choice to be made.
Managers can base their decisions on personal interpretations – experience and intuition – or use software developed for that purpose. If you want to know how to make the best decisions for your business, keep reading the article!
What is decision-making?
Decision-making is related to the set of actions aimed at solving specific issues within the organization. It encompasses two or more possibilities that will have consequences, whether positive or negative. These choices affect not only the company, but also employees and customers.
To make good decisions, the manager needs experience and knowledge in the area. The union of these two skills develops the administrator’s critical thinking, thus, they are able to analyze risks and what are the best solutions for certain problems. There are three types of decision-making, as follows:
- value-based decisions: they are choices based on the entrepreneur’s moral guide, in their concept of right and wrong. It is related to the influences that each individual has throughout their life;
- conscious or subconscious belief-based decisions: conscious belief-based decisions are associated with reflection and analysis, while subconscious decisions are associated with intuition, an internal perception, and are not rational;
- data-based decisions: to minimize the risks and chances of wrong choices, the use of concrete data through software is the best alternative for decision-making. We will learn more about it in the next topics.
What IS the best decision-making software?
Do you know what Data-Driven Decision-Making (DDDM) is? It is the decision the manager makes based on actual data, not their intuition or personal interpretation. This is only possible due to the use of specific information processing software.
Firstly, solutions such as Enterprise Resource Planning (ERP) group important data from the organization. Having specific programs for financial, sales and customer relationship (CRM) management also helps to concentrate data that can be valuable for the production of insights later on.
Secondly, Business Intelligence (BI) software can collect and process large amounts of data with the purpose of supporting important decisions by the manager. They are able to provide accurate reports, graphical dashboards and KPI monitoring. According to a study by the MIT Center for Digital Business, companies that make data based-decisions have 4% higher productivity with a 6% increase in profits.
What are the main benefits of data-based business decision-making?
The use of software ensures a more professionalized management, effectively helping with the fulfillment of the company’s planning. The data processed by these programs provide a better assertiveness for business decision-making.
MyABCM is a multinational company that provides software for strategic cost, profitability and performance management. MyABCM Express was designed for simpler implementations and can be customized according to customer’s preferences, while MyABCM Corporate is a solution for more complex and advanced implementations, with the ability to process models with large amounts of data.
If you want to make the best decisions for your business, contact us! We have the best solutions for your company!