Data-driven decision management (DDDM) is an approach to business governance that values decisions that can be backed up with data that can be verified. The data-driven approach is gaining popularity within the enterprise as the amount of available data increases in tandem with market pressures.
Data-driven decision management is usually undertaken as a means of gaining a competitive advantage. A study from the MIT Center for Digital Business found that organizations driven most by data-based decision making had 4% higher productivity rates and 6% higher profits.
The success of the data-driven approach is reliant upon the quality of the data gathered and the effectiveness of its analysis and interpretation. Errors can creep into data analytics processes at any stage of the endeavor and serious issues can result when they do.
See also: data-driven disaster