It’s very easy to ascribe “genius” as a means by which relying on a visionary approach, predicting the future based on your preconceptions, and having the courage to try something new is defined. In some cases, this can apply. For instance, it took courage, the means to try a new theory of relativity, and the language to communicate it that helped Einstein become a household name to this day.
That said, none of this holds water until it can be backed by hard data or logic. For this reason, you can be the best, most interesting and creative business leader in the world, but without the ability to define your decisions based on real, hard data, it’s hard to achieve anything or execute any of your ideas.
For this reason, making more informed business decisions is not just about how visionary you can be, but how you can use real evidence to support those conclusions and bring a business along with you. In this post, we’ll discuss how to achieve that, and ultimately make more informed business decisions:
Always Consider The Market
Ultimately, no decision you make will be uninfluenced by market forces. Even your hiring policies will be influenced by exactly what expertise you can hire from, where you hire from, and the packages those kinds of people are looking for in order to secure competitive positions.
This is why keen market research is key. It’s always essential to test the waters before you go ahead. This might mean making one of five small differentiations in your product prototype and then using a focus group to determine which one is superior. It will involve researching your competition to see the moves they’re making and the innovations being brought to the space. You can imagine that when Google released its Pixel line of smartphones, their market researchers took plenty of time to see how Apple and Samsung were developing their platforms, too. Google saw that the “notch” design of the iPhone was unpopular, and so decided to go for the smaller imprint camera lens.
This principle can help you not define your decisions but certainly understand the context they’ll be made in.
A Data-Driven Approach
It’s always essential to use the data as your guiding light. With digital twin services by MosimTec https://mosimtec.com/digital-twin-services/, you can implement that. This might involve digital interpretations of your manufacturing line or products to understand technical specifications and curate design sheets, to understand all of your on-the-books assets with essential data backups and cloud storage solutions. In that way, all decisions you make will have this informed preparation to guide it, helping you avoid blind spots or other issues that could have tanked the capabilities of your brand. In the long run, that can be tremendously helpful for any business to utilize. No internal optimization can be achieved with a focused, data-driven approach.
Identify & Control Risk
No decision comes without risk, and ask a business manager you are more than likely aware of that. Even choosing one candidate for a role over another runs the risk of causing yourself a problem – because after onboarding they may just drop out, or cause problems, or have lied to get through the vetting process. That’s why we make sure the vetting is strict and proper credentials are examined.
You cannot possibly predict every single risk you may face when making a business decision. For example, you may decide to invest in real estate only for a flood to completely wipe out the premises moments after you’ve signed the bill of sale and moments before insurance kicks in.
However, there is some risk you can control or at least reduce exposure to. Insurance, as mentioned already, is a big one. This can help protect assets of worth. If you’re opting for a new supplier, consider a backup supplier you can rely on too, just in case your main choice doesn’t meet the standard, even if your backup is more expensive.
If implementing remote working solutions, make sure you invest in cybersecurity training so that every staff member is made aware of their responsibilities and unlikely to cause potential issues within your system. Identifying this kind of risk is not only prudent, but important, and helpful at all levels. As you can see, limiting risk often requires helpful planning, foresight, and investment. Yet it can format your informed business decision in the right way.
With this advice, you’re sure to continue to make informed business decisions as time goes on.