Business professionals, business owners and B2B solopreneur consultants know that information is practically as valuable to all of us as our skill arranged. Good information leads all of us to make smart decisions about all aspects of business: what services to offer, identifying target customer groups, designing a profitable business model, understanding how to market our services, gaining a competitive border. That good information is integral to all that we do is no surprise, but until now there was no technological evidence to support that belief. fusionex founder
Research conducted this year by Erik Brynjolfsson, economist at the Massachusetts Start of Technology Sloan College of Business; Heekyung Betty, graduate student in economics at MIT Sloan University; and Lorin Hitt, economist at the University of Pennsylvania Wharton School of Business, proves that good information really does put money in your pocket or purse.
The three studied 179 large businesses and found that after decisions enacted were based on reliable data, companies achieved a five per cent higher productivity level than businesses that relied more on “experience and intuition” for decision-making. The higher productivity could not be attributed to other factors, including the use of more complex technology.
In the study, data-driven decision-making was not generally based on merely collecting data, but was closely linked to how the data was utilized. In the 04 24, 2011 New You are able to Times, Mr. Brynolfsson explained that business decisions structured on data and examination “have huge implications for competitiveness and growth”.
Betty Davenport, professor details technology and management at Babson College near Boston, MOVING AVERAGE, supported the conclusions contacted regarding data-driven business decisions in a book written with Jeanne Harris and Robert Morison, Analytics at the job: Smarter Results (2010), finishing that companies that count heavily on data evaluation are likely to overcome those that do not.
The big question is, which data do we choose to accumulate and analyze and how do we best put it? Curating data is big business. “The biggest change facing corporations is the exploding market of data”, said David Grossman, technology analyst at Stifel Nicolaus in the April 24, 2011 Fresh York Times. “The best business is in aiding customers analyze and control everything data”.
So how might a solopreneur or small business owner choose data threads to follow? Begin by reading your L & L statements. Analyze gross earnings and set and variable expenses to calculate how much it costs to build sales and ponder which expenses might be trimmed to make the bottom line better.
Talking about gross income, what are the inexpensive costs of items your company sells? Should you find alternative suppliers, or renegotiate terms? If you offer B2B services, look into the processes you follow to generate your intangible. Are there operational efficiencies that can reduce the time you may spend on management work?
Finally, pay attention to the products and services that customers have been buying, or not buying, during the previous four quarters. Should you make any adjustments to what emerges or how it is bundled and priced? Or should you ask customers why they no longer feel the need for many items or services?