Companies generate a large amount of data daily. These data will be the inputs needed for effective and conscious decision-making, so it is vital that managers are able to extract the most value from them. It is important for companies to define an integrated information strategy, otherwise the data will not have the required value. In today’s article, we leave you with some tips to transform your company’s data into relevant information!
Data vs. Information
First and foremost, you need to distinguish between data and information. Although they are connected, these concepts don’t have the same meaning. Data is all information and initially does not bring any value to the company, as they have not yet been filtered or interpreted. They are data with potential. Already the information is a set of data that have already been categorized and it is already possible to extract useful information. The important thing in this process is to be able to distinguish what can be used with relevance and what does not have any kind of value.
Get to know the state of your business at all times
The day-to-day of a manager is quite busy and it is humanly impossible to keep up with all the situations that happen in the business. It is very important to have a real-time business monitoring system that allows you to set business alerts so that you are advised whenever any important situation requires immediate intervention. Multipeers is a BAM system that allows you to define business alerts that warn you whenever a situation requires your attention. In this way, you will always be aware of the events of your business and will be able to decide in good time. Many of the decisions are made based on reports a few days late, which makes the company have a reactive and non-proactive action. With Multipeers you can always be ahead of the competition. This is one of the most effective ways to turn data into relevant information!
Create efficient planning
For more complex, and especially long-term, decisions, you need to carefully plan each step to be taken considering all the pros and cons of each situation. A very efficient technique is the 5W2H tool, an acronym of 7 questions, in English, that serve as a basis for developing good strategic planning.
- What (what will be done?)
- Why (why will it be done?)
- Where (where will it be done?)
- Who (who will be made?)
- How (how will it be done?)
- How much will it cost?
Use KPIs to evaluate actions
Defining business indicators in a conscious way is fundamental to being able to analyze the business objectively. It is essential that the indicators analyzed show managers the way forward in order to correct errors and apply new strategies. KPIs should be simple so that the entire team is able to understand them. If you get too complicated a KPI, you run the risk of not being able to extract any useful information from your analysis. If employees do not understand the indicator, they can become unmotivated, which harms the company’s performance. A KPI should be analyzed frequently because only with constant monitoring can we understand if we are correctly executing the company’s strategy and generating value with our activity. You should always opt for indicators that can be measured easily and frequently so that you can make day-to-day decisions based on reliable and up-to-date information.
Use dashboards in your day-to-day business
A dashboard visually displays the most important information about the business. In case of using a tool like Multipeers, the information is updated permanently and automatically, so that you have at your disposal the most current information on everything that happens in the company. By using a dashboard, you can easily see if your business goals are being met. Linking KPIs with day-to-day activities is essential if individual and global goals are to be achieved more simply. The dashboard is a very important tool in that it presents the data and organizes it so that the manager can analyze them objectively and so that he can extract as much information as possible.