• Unit 8: Data-Driven Uses and Misuses

    Even if an organization utilizes data-driven decision-making, the ultimate decision on how to interpret and use the analysis results still falls into management's hands. If they interpret it properly and act accordingly, they can lead their organization to cost savings, increases in revenues, profits, market share, or customer loyalty. Conversely, if they misinterpret the analytics results or act improperly, they could lead their organization to a damaged reputation, lost customers, or reduced revenues and profits. Management must walk this fine line every day, and the data is not always clear as to what actions they should take. In this unit, we will examine examples of organizations that have benefited from properly using DDDM to grow their business. We will also discuss the implications of misusing or misinterpreting analytics leading to incorrect and sometimes embarrassing outcomes.

    Completing this unit should take you approximately 2 hours.

    • Upon successful completion of this unit, you will be able to:

      • relate the consequences of improperly using or implementing analytics;
      • examine how organizations have benefitted from properly using DDDM to grow their business; and
      • analyze the key questions management must ask to determine the best decisions to make in response to an analysis results.

    • 8.1: Collecting Data

      • Collecting Data Book

        Before there can be any data-driven decision-making, there has to be some data. This data is 'fed' into the system to help generate business insights and be collected from various sources. This article explores how data is collected in the marketing research process to influence marketing strategy.

      • Data Collection Methods Page

        Data collection methods vary based on the purpose of the research, the availability of data, and its suitability for a particular use. As we've previously discussed, quantitative data and qualitative data are very different and fulfill specific needs. Watch this video to receive an overview of data collection for a research project. It delineates how and when each type of data can and should be utilized.

      • 8.1.1: How Data Is Collected

        • Types of Data Sources Book

          Data can be collected from multiple internal and external organization sources. This article reviews some of the most common types of data and how it's classified, internally or externally. Be sure to answer the Practice Questions to demonstrate your understanding of the material.

      • 8.1.2: Using Business Objectives to Target Data

        • Business Data Page

          Businesses collect a wide variety of data to help inform their decision-making. To be successful, they have to differentiate between the types of data, prioritize the relevance and determine how much is relevant to their decision-making process. This article discusses the broad categories of data that can be collected, where it originates from, and how the organization can utilize it.

    • 8.2: Making Business Decisions Using Data

      • Analyzing Data Book

        Before any decisions can be made from the data collected, it must be analyzed and summarized to be comprehended by the organization's management. This article summarizes the data preparation methodology used for analyzing marketing research data. To avoid bias, personal opinions should not be introduced into the decision-making process. Still, it is essential to interpret the analysis results in light of their impact on the organization. That is, does it make sense in light of the current situation? Blindly following the analysis can also result in making bad decisions.

      • Management Information Systems Book

        The data that supports an organization's decision-making process has to be stored and maintained in the management information system (MIS). The MIS is not just one system but a collection of systems designed to support various organizational functions. This article explores the different types of MIS systems and the level of decision-making each supports. Focus on the Transaction Process Systems diagram and note how the various information systems (pink boxes) inform decisions at different levels in the organization.

      • Building a Strategy Page

        Regardless of industry, management needs a clear vision to reach its goal. To attain management's vision, the team needs useful data. In this video, an executive explains how the need for sound data is the same in philanthropic areas as it is in for-profit businesses. Listen closely to how he focuses on the importance of useful data to inform the analysis, which leads to better decision-making.

      • Transaction Processing System Page

        This unit covered how data-driven information supports product development. During this unit, you incorporated data collection, data mining, sampling, data visualization, CRM and CLV, KPIs, and metrics to develop a product strategy. Remember, data-driven product strategies should (1) identify customer needs, (2) improve customer experience, (3) infuse data insights into product development, and (4) get employees thinking about the needs of the customer. You now have the skills to use data to make business and product decisions effectively.

    • Study Guide: Unit 8

      We recommend reviewing this Study Guide before taking the Unit 8 Assessment.

    • Unit 8 Assessment

      • Unit 8 Assessment Quiz
        Receive a grade

        Take this assessment to see how well you understood this unit.

        • This assessment does not count towards your grade. It is just for practice!
        • You will see the correct answers when you submit your answers. Use this to help you study for the final exam!
        • You can take this assessment as many times as you want, whenever you want.