How Relevant Data Makes Even Tough Decisions Simpler

Here’s a staggering statistic: In 1992, there were 1,000,000 devices connected to the Internet – roughly the population of San Jose.  By 2020, the Internet of Things (IoT) will be receiving data from 50.1 billion devices, which averages out to 6.6 devices per human. That’s only five years from now!

Think about all the data you’re collecting now that didn’t even exist a few years ago: customer engagement, mobile usage and behavior, feedback from the Internet of Things (IoT).  Here’s the big question. Is that data making you more effective at your job?  Are you making better decisions as a result?

If you answered “no,” it’s probably because more data doesn’t automatically lead to greater efficiency and better decision making.  In fact, too much data can be misleading and confusing.  It’s easy to get overwhelmed and fall victim to “analysis paralysis.”

Most businesses don’t need to gather more data points.  What they do need is to effectively and efficiently sort through their massive amount of data to find the relevant data that will inform their decisions – the gems that identify trends, point to opportunities, and reveal risks that might be hidden from plain view.

Fortunately, as data has grown, so has our ability to power through it in real time.  In-memory computing lets businesses crunch Big Data across many different platforms and cherry pick what’s valuable.

Once the data has been parsed, data visualization tools make it easier to recognize the intelligence that emerges.  The best tools can look at the type, size, and value of the data and recommend the optimal way to present it.  SAP’s Lumira data visualization tool can even identify which questions companies should be asking—through predictive analytics–leading to breakthrough insights.

Make simplicity a core company value

All that said, getting the right information won’t simplify your decision making if your company isn’t committed to simplicity.  In today’s business world, decisions are too often driven by how difficult it is to achieve an objective.  The path of least resistance can appear to be the most appealing road.

But decisions that are made to avoid short-term pain points likely aren’t the best decisions for the business’s future.  To pave the way for success, a company must embrace simplicity at every level.  Not an easy thing to do when we’re used to adding to processes and creating more structural layers to handle difficult decisions. Simplifying means taking accountability and making the best decision at the time, using the information and resources on hand.

Automating simple business processes – such as setting up a fail safe for budget overruns – can reduce the number of decisions that keep managers from tackling bigger objectives.  And flexible, innovative technology that reduces the number of steps in processes, streamlining the entire operation, can keep the business on track to obtain such objectives.

Technologies for running simple

Every leader should have a clear understanding of which decisions deserve the most attention.  Many decision makers waste too much time on decisions that their team members can handle.  Micro-management kills simplicity.

However, predictive technology can show managers which decisions are high-impact, low-impact, strategic, and tactical.  And it can even run “what if” scenarios to reveal the possible impact decisions would have on the business, customers, employees, and the marketplace.

Once you’ve made the commitment to reduce complexity, SAP can help with the tools and solutions that let your company realize and analyze relevant, valuable data in real time, automate non-critical business processes, and enable better decision making at every level.

Fonte (SAP):

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