Data analysis: the foundation of good decisions

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Data is the new oil . This is increasingly a certainty for many companies, which are beginning to use data analysis as a form of decision support to outline the future paths of organizations.

However, while correct interpretation and analysis of data is essential, it is even more important that the data represents the actual reality of companies and that its quality is assured. Data that lacks quality will lead to incorrect analyses and major losses for the organization, something that no manager wants to happen.

It is therefore important that companies focus on trying to obtain data that is as realistic as possible, in order to correctly feed their data analysis systems .

Data Analysis: The Importance of Data Quality
Data quality is defined as the value that certain information has based on israel whatsapp number database factors. This is because a set of data only has quality when it is possible to observe its origin, how it was produced, stored and manipulated.

For data to be of quality, there are 7 factors that contribute to this process:

Accuracy - It is important that the data is as accurate as possible and that it reflects the reality of the market and organizations. If the data is not accurate, it will lead to incorrect analyses of situations.

Completeness - It is crucial to be able to obtain all the data and to be able to obtain the same data for different situations and different periods. Only then will it be possible to carry out a correct data analysis.

Relevance - The data collected must be relevant and appropriate for the type of analysis to be performed. If the data needed to assess a given situation is not obtained, it will affect or make the result unfeasible.

Validity - This criterion does not refer to the data itself, but rather to the way in which it is obtained. It is important that this information is recorded in the most correct format, in order to facilitate analysis.

Timeliness - This point refers to the fact that data should be recorded as close as possible to the date on which it occurred. This way, inaccuracies are avoided and the risk of it becoming irrelevant is reduced.

Consistency - Finally, consistency refers to the fact that the form and content of the data must be consistent across the various reporting tables and time periods so that they can be comparable.

Why is data analysis important in organizations?
Many organizations today use this type of information to make decisions about research, finance, human resources or marketing based on data analysis. In this way, data is becoming an important tool in the evolution of companies and in differentiating them from the competition.

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When it comes to data analysis, it is important to distinguish between two types: predictive and non-predictive analysis .

When we talk about predictive data analysis , we are referring to those that aim to predict trends through various factors extracted from the data. Non-predictive data analysis, on the other hand , is related to the analysis of the company's history in order to understand the financial performance, the productivity of a sector and team or the evolution of sales and their seasonality.

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Any type of data analysis will only be able to contribute to the development of the organization if the data it receives is correct. Therefore, in order to make correct decisions and avoid unnecessary loss of money or damage relationships with employees and customers, it is important to ensure good and correct data capture.

Data analysis: what are the benefits?
By ensuring good data quality in your organization, you are enabling the following benefits to be gained:

​​Data consistency
By achieving consistency in data, you will reduce the likelihood of errors, as well as the unproductivity of some processes. For example, if you have a list of addresses or email contacts and you need to send a communication to them, you can reduce costs by eliminating addresses or email addresses that are no longer valid or are duplicates.

​​Improved customer relations
By ensuring that your data is complete and up to date, you will be able to get to know your customers in more detail. This way, you can provide them with a more personalized service and, therefore, improve your relationship with them.

​​Most effective marketing strategies
By knowing your customers and your market in detail, you can target email campaigns and effectively reach those who intend to buy your product or who are in the maturation phase of the purchasing process.

Better decision making
If you know in detail the state of your company, its evolution and market trends, you can better direct your strategy and make decisions that are more aligned with the needs of your customers.

​​Increased efficiency
With standardized and correctly collected data, you can achieve good integration between systems that will allow you to keep all departments aligned. In addition, you can reduce the need for your human resources to constantly enter and correct data , because they always have it at hand , achieving increased efficiency on several levels.

​​Increased competitiveness
By knowing the market and your company's capabilities, you can adapt more quickly to customer needs and technological developments in the market. This also makes you more competitive compared to your competitors.

Increased profitability
If your company becomes more efficient and competitive, you will achieve significant gains on several levels that will allow you to obtain greater profitability and profit in your business.