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Using Data Driven Decision Making

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According to Provost and Fawcett (2013) data-driven decision making refers “the practice of basing decisions on the analysis of data rather than purely on intuition.” For Example, a seller could select the advertisement based on his long experience in that field or his eye for what will work. He can also do the selection on the analysis of data regarding how the people will react to different advertisements. In today’s organization, managers make a great effort to use data driven decisions because data-driven decision helps in gaining competitive advantage and it can be most interesting and transformable. A study from the MIT center for Digital Business found that the organizations driven most by data-based decision making had 4% higher productivity rates and 6% higher profits. (Rouse)
Using the data-driven decisions oftentimes creates the scarcity of information and the organization operates in dynamic and complex environment which creates instability or uncertainty. While using the data driven decision errors can occur at any stage of the endeavors and can cause the serious issue.
Environmental Uncertainty is a condition where the management has the very little information about the external environment. (Milliken) defined Environment Uncertainty as an “individual’s perceived inability to predict an organization’s environment accurately because of lack of an information or an inability to discriminate between relevant or irrelevant data. The two degree of environmental
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