Decision-Making Processes in Management: The Influence of Data Analytics and Big Data

Abstract

This paper explores the role of data analytics and big data in decision-making for management. The paper also shows how the increased adoption of data analytics has shifted conventional decision-making methods, which were mainly informed by heuristics. Big data technologies facilitate data-driven decision-making to offer real-time and predictive information to managers. The quantitative data was obtained from 200 managers from different sectors such as health care, finance, retail, manufacturing, and technology sectors while the qualitative data was obtained from focus groups and interviews. This is evident because approximately 78% of managers indicated that they often apply data analytics tools and the most often used tools are business intelligence systems, predictive analytics, and data visualization tools. The study also looks at the difficulties that organizations experience when adopting a data-driven culture, including data quality, information overload, and organizational culture. In summary, this research establishes that data analytics enhances the speed of decision-making, increases accuracy, and promotes cooperation to enable organizations to prepare for volatile business environments.