Data-driven management: why apply?

Do you know what data-driven management is and how it works? By the way, do you know how it applies and affects the performance of the IT environment? Increasingly, the expansion of Big Data and Analytics has been impacting on how companies and businesses deal with management.

And that, in a positive way, has been transforming the way managers deal with their decisions. Being based on data to guide the company’s direction is more than a new practice, it’s a necessity.

But do you know what data-based management is and how it is performed? Keep reading and understand more about the practice!

Data-driven management: what is it?

First, before learning how this new practice impacts companies and the IT environment, let’s understand what data-driven management actually is.

In short, data-driven management is nothing more than having consolidated information to make decisions. In practice, it means looking at factors already known and seeking to “predict” scenarios to position your company strategically.

Thus, a company can, based on data, seek the most efficient and economical decision possible. But how does that happen?

And how does it work in practice?

Although – as yet – it is not possible to predict the future, we can foresee scenarios based on factors that have already happened. And how is this forecasting done?

Business and how companies deal with it occur in a cyclical way. That is, it is common to notice patterns that are repeated under certain conditions.

Periods of the year with higher sales, actions of customers and employees, characteristics of the market and the competition. There are many well-known factors that have the same pattern.

In this way, data-based management takes certain information into account to make important decisions.

Data-driven management: How important is it?

But how does this actually affect the company? What are the advantages of using this data for decision-making Generally speaking, there are some benefits to using data-driven management in a company.

Thus, for example, to cite some relevant decision-making, such as:

Directing purchases of inputs and supplies;

Definition of sales and hiring strategies;

Creation of data architecture and classification;

Prevention of failures in strategic positions.

How management affects profits and visibility

However, perhaps the biggest benefit of data-driven management for a company lies in how it impacts two factors: profit and business visibility.

The former generally refers to a company’s ability to manage its earnings more efficiently. Predicting failure and defining more efficient strategies is a good way to increase the company’s profits.

But it is through this management that a business can also have more visibility compared to its competition. This type of management enables the definition of campaigns and strategies that put the company ahead in the market.

Data-driven management applied in IT

And when we discuss the IT environment, how does data-driven management apply in practice? In addition to the factors already mentioned here, this type of management directly affects the company’s decision-making and efficiency. And it would be no different with Information Technology.

By means of a management system, in fact, there are other advantages applied to day-to-day operations. An example of this is the possibility of process automation, besides the increase in productivity.

In addition, the system also contributes to error prevention, ensuring that the IT professional can view relevant information and avoid rework.

So, being direct, data-based management in IT results in the same benefits when applied to the rest of the company. Assertive sizing, failure prevention, greater predictability, and agility in problem-solving. Since IT is currently a strategic partner for all companies that want to be competitive, the advantages mentioned above result in two magic phrases for any manager:

Reduced spending

Greater resilience

A resilient and efficient IT environment will be a crucial ally for the company to pursue its goals. Therefore, the attention to all the functional areas of the FCAPS (Model created by ISO) becomes more than a recommendation, but a necessity.

Putting this management into practice

However, to have all these benefits, you need to know how to put data-driven management into practice. And for this, it is possible to use tools or system that enable the application of this type of management.

With this in mind, Telcomanager, Latin America’s leader in the software industry for management and monitoring, since 2002 in the market with a unique and innovative methodology, provides intelligent solutions in order to provide complete visibility to the information technology and communication infrastructure of its customers, thus allowing companies to monitor the main aspects of their IT environment.

Published on 14/07/2022