There are many different factors that come into play when one talks about the business value of improved decision making. Let’s start by looking at the tangible results. If the process is improved and the right decisions made, a company can increase the efficiency in operations that it has, create new market segments, reduce costs, improve product quality, and reap a large amount of profits. Here are some more examples of how this factor plays out.
- A) Improved decision-making leads to better products on the market. A company can increase the effectiveness of the processes involved in the process and therefore improve the product on the market. This, in turn, can lead to increased sales, higher margins, and a better bottom line. When you take all of these areas into consideration, the business value of improved decision making clearly points to the idea that it makes business sense.
- B) The improvement in production can lead to an improvement in the customer satisfaction level. In some cases, the company may not be able to improve the production of the same item 100%. However, the ability to produce a better product means that the company can provide a better customer experience. For example, if the company has a website that it does not make enough money from, it can invest the money that would normally go into operations to increase the number of visitors that it gets. The bottom line is that the more people that visit the website, the more likely they are to spend money on the items on the site.
- C) Many companies make a good investment in their research and development departments when they take advantage of the business value of better decisions. Research and development departments spend a lot of time and money on finding ways to improve products and the services provided by the company. These improvements might involve new processes, new information, or better information on how to provide better customer service. A company should not only look at the return on the investment that they have made in the past. They should also look at the possible benefits that they could get by using the better decisions that they have made in the future.
- D) The company should also realize that when they make better decisions, they can improve the reputation of the company. When consumers recognize a company for making decisions that help the consumer, they will recommend the company to others. If the recommendations become many, the reputation of the company will be enhanced. The increased customer patronage could lead to higher revenues. Of course, the reputation does not stop there. As consumers continue to give positive feedback, other customers will want to give the company more positive feedback.
- E) Finally, the business value of improved decision making is enhanced when the company learns something from their mistakes. No matter what kind of business it is, if a company makes many mistakes, it should learn from them. Making more mistakes might make it harder to do things in the future, but the more mistakes that are made, the better the decision-making process will become. This also has the added benefit of lowering the risk that the company takes in making bad decisions.