What does the term "data-driven decision making" refer to?

The term "data-driven decision making" refers to decisions that are backed by data analysis and interpretation. This approach emphasizes the use of quantitative and qualitative data to guide strategic choices, ensuring that decisions are grounded in evidence rather than personal feelings or assumptions. By analyzing relevant data, organizations can identify trends, make predictions, and evaluate the potential impact of their decisions, ultimately leading to more informed and effective outcomes.

Using data in this way allows decision-makers to rely on verifiable information rather than subjective opinions or intuition, which can sometimes lead to biased or uninformed choices. In a data-driven culture, the emphasis is on utilizing analytical insights to foster better strategic planning and operational efficiency.