Free Trial

Safari Books Online is a digital library providing on-demand subscription access to thousands of learning resources.

  • Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint
Share this Page URL
Help

Chapter 1. About Data > 1.2 Why Data Are Needed

1.2 Why Data Are Needed

Management requires data because they encounter variation and uncertainty in decision making. Especially in larger businesses, management has an undiminished need to understand the business and its environment. Global markets have added further complexity and the need to adjust decisions quickly to changes in the business environment. Data provide understanding of the internal business operations as well as of the external environment.

The saying "You cannot manage what you cannot measure!" expresses how essential data are to modern management practice. Data guide strategic, tactical, and operational decision making. Management needs data to determine the future direction of a business, to allocate resources, and to run existing operations smoothly and efficiently. A diversified company needs data to determine which businesses to foster and grow, which to acquire, and which to leave behind. The data for such strategic decisions are not easy to come by. They require the proper context to be useful and informative. A retail chain needs data to determine sites for new retail outlets. Retailers maintain and acquire large databases for such tactical decisions. These data are fed into specialized software to evaluate locations for their suitability. Such software determines the data needs.


  

You are currently reading a PREVIEW of this book.

                                                                                                                    

Get instant access to over $1 million worth of books and videos.

  

Start a Free Trial


  
  • Safari Books Online
  • Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint