Behind Every Good Decision | Piyanka Jain

Summary of: Behind Every Good Decision: How Anyone Can Use Business Analytics to Turn Data into Profitable Insight
By: Piyanka Jain

Introduction

Welcome to the summary of ‘Behind Every Good Decision: How Anyone Can Use Business Analytics to Turn Data into Profitable Insight’ by Piyanka Jain. This book offers insights into how ordinary practitioners and managers can analyze complex data and make informed decisions. Emphasizing the importance of data-driven solutions, this summary will guide you through easy-to-understand analytics techniques, the implementation of the BADIR framework, and the significance of predictive analytics. By understanding these concepts, you will be able to use simple analytics tools, such as Microsoft Excel, to solve a majority of your business problems and make profitable decisions.

Simplifying Data Analysis

The ability to analyze data is not only for professionals. This book explains how managers and practitioners with minimal training can harness basic tools like Microsoft Excel to conduct powerful analyses. Firstly, identify the problem your business needs to solve by getting feedback and canvassing experts. Test hypotheses against the data and employ basic data analysis to remove less viable ideas. Next, implement the solution on a trial basis and test before scaling. This will reveal insights that fuel the necessary actions and decisions.

Simple Analytics for Business Success

Circuit City’s demise resulted from poor decision-making in the absence of analysis. The book highlights the importance of using data to solve problems and increase success rates. The author emphasizes the need for focused data, evidence, and the use of analytics methodologies like Excel to address about 80% of business problems. The remaining minority of problems may require predictive analytics and data science skills. Therefore, businesses must adopt data-backed decision-making to prevent making disastrous moves based on hunches.

Seven analytics techniques for better business insights

Discover seven analytical techniques to improve your decision-making process and address business concerns.

In today’s data-driven world, businesses strive to make informed decisions while addressing their concerns. However, this can be challenging without the right tools and techniques. The book introduces seven analytic techniques to help businesses gain valuable insights and improve their decision-making process.

The first technique is “Aggregate Analysis,” which allows businesses to determine client demographics and select the best advertising channels. The second technique is “Correlation Analysis,” which helps identify a link between two variables such as lead generation and advertising channels.

The third technique is “Trends Analysis,” which tracks correlations over time and can be used for predicting future trends. Educated guesses, such as “Sizing/estimation,” make up the fourth technique, which assesses a market’s potential value based on past experience and data.

The fifth technique, “Predictive Analytics,” analyzes new and old data to predict the future and forecast events such as weather changes or disease outbreaks. “Segmentation” is the sixth technique, which divides customers into groups based on specific characteristics and behaviors.

Lastly, the “Customer Life Cycle (CLC)” technique studies customer behavior at various stages. It provides insights into how long customers take to upgrade from free access to paid subscriptions, among other behaviors.

In conclusion, understanding these seven analytical techniques will equip businesses with the right tools for better customer insights, improved decision-making, and addressing business concerns.

Mastering Data Analysis for Better Business Decisions

The BADIR framework provides a step-by-step process for combining data analysis and business knowledge to improve decision-making, from pinpointing the right business question to presenting credible recommendations.

The BADIR framework provides a comprehensive guide to leveraging data analysis for decision-making. It entails five steps:

Firstly, pinpoint the problem to be solved by asking the five W’s: who needs the information and why, what is the problem, when and where is it happening, when is analysis needed, and whom does it affect. This helps to prevent wasted time solving the wrong questions.

Secondly, develop an analysis plan by setting goals for the analysis, gathering stakeholders’ thoughts on the problem’s causes, and prioritizing hypotheses to test. Choose the right analytical technique and data parameters before collecting data only after setting up a project plan.

Thirdly, collect data and screen for errors and bad information using small sample tests.

Fourthly, focus on analysis and insights, using the seven analytics techniques, with aggregate analysis essential for identifying customer bases that account for the most sales and revenue.

Finally, present credible and actionable insights through concise and prioritized recommendations supported by a one-slide “executive summary” that summarizes the main points.

The BADIR framework offers an easy-to-follow recipe for data analysis towards possible solutions to the challenges confronting business leaders.

The Power of Predictive Analytics

Predictive analytics allows businesses to use data analysis to make predictions about the future. This technology has a range of applications, from helping Netflix predict what movies you might enjoy, to assisting local police in identifying high-risk areas for crime. Even businesses can use predictive analytics to identify their target market. While creating a complex model requires more time and resources, it can also lead to more accurate predictions. However, explaining these models to those who may not understand can be a challenge that must be addressed.

Want to read the full book summary?

Leave a Reply

Your email address will not be published. Required fields are marked *

Fill out this field
Fill out this field
Please enter a valid email address.
You need to agree with the terms to proceed