How to avoid analysis paralysis in a data-driven world
Is the fine line between data driven decision making and analysis paralysis unavoidable?
Revenue Optimization — Viewpoint by Scott Dahl
More than ever data is available to help shed light in dark corners and to support making high impact decisions. When all goes well revenue managers will feel armed with the right data to check assumptions, gather insights and align teams towards profitable outcomes. With the quantity (and quality) of data sources increasing it can get daunting though.
To avoid analysis paralysis I would suggest starting with an audit of your current setup:
- Which data sources are you checking and how do you access them?
- Where do you spend most time and how does the time spent correlates to the impact?
- Consider changing processes when time spent vs. impact is out of balance.
- Always ask yourself if the data will help you make better decisions.
When deciding if you'll introduce new data sources in your process I would evaluate what moves the needle for your property. What type of property are you managing? What are the main profit centres and where do you see room for improvement? What are your goals and which challenges do you currently face or foresee to reach these goals? Which data sources would be able to provide clarity?
In addition, I would consider checking if you can automate the less strategic, more tactical decisions by using tools built on machine learning. Ideally some time will free up to consult different data sources for more strategic and high impact decisions.
Look for solutions that process and visualise the data in meaningful ways so less time is spent on the analysis or looking for clues in a sea of numbers and more time can be spent on actual decision making.
Finally, I"d suggest being open to experiencing the value of newer data sources and tools first hand.