Data Driven: An Overview and Practical Measures for Organizations

Abstract

Data is considered a primary resource for innovation. The existence of a large amount of available data, as well as technological tools capable of explore them, allows companies to extract information that can be used to create and implement new ideas and new projects. To this end, the details regarding the care that organizations should have with data are explored. The difficulties regarding the adoption of data-driven approach and some measures to implement this type of decision-making approach are also discussed. Some examples of data-driven approaches for diverse industries and products are shown. A real example of prediction model for decision making that is based on industrial data is also discussed. This example shows the difficulties in the preparation of data for the building of these models, which confirms that most of the time spent in the construction of predictive models it is due to this step. The use of the data-driven approach allows organizations to obtain superior results in their processes, thus becoming a tremendous competitive advantage and a special strategic factor in a highly competitive market, regardless of the field of activity.