BUS607: Data-Driven Decision-Making

Introduction

Data is becoming crucial to the competitiveness of nations, regions, cities, and companies. This chapter highlights the implications of the transition to a data-driven economy for firms, especially in emerging markets. The emergence of the data economy has stimulated development of new business models and is transforming many of the key functions of private sector firms, including product development, customer relationships, supply chains, and core enterprise functions such as marketing, human resources, and finance. Governments in emerging markets are keen to explore and implement the right policies to allow private sectors to enhance competitiveness and benefit from new opportunities in the digital economy while mitigating risks.

The chapter examines the impact of data on firms from three distinct perspectives. The first part of the chapter introduces an assessment framework for digital platforms­ – a dominant aspect of data economies­ – and features case studies of selected digital platforms in emerging markets. Next, the chapter looks at how data affects firms, highlighting the tension between data as an equalizer, but also as a key competitive differentiator. Finally, the chapter looks at how data affects small and medium enterprises (SMEs)­ – and their specific needs.

Source: World Bank, https://openknowledge.worldbank.org/handle/10986/30437
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