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The role of data in strategic decision making process

Author: 
Stanley Kavale
Subject Area: 
Life Sciences
Abstract: 

This paper explores the role of data on the strategic decision making process. This is a desk top research study which looked at different studies done by researchers on the role of data and its role in strategic decision making. The main objective of this study is to establish the roles data play in strategic decision making. The strategic decision making process has also been identified and the theories underlying strategic decision making process have been explored. First it looked at the definition of data in relation to information and knowledge. Sources of data, both internal and external have been identified and theories of decision making; rational, incremental, political, constructive and factual approach illustrated. From the study, it is quite clear that data has very important roles in strategic decision making. This paper concludes that data plays the roles of; gaining competitive advantage, optimization of resources, cost reduction, value creation, accuracy and accountability and hedging uncertainty. Thus data brings efficiency and effectiveness in the strategic decision making process. This paper recommends that management in organizations should attach a lot of importance to data sourcing, analysis, interpretation and use to create competitive advantage. Further, data security should be enhanced because data is a key resource.

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