Applying the methods and objectives

Data-Driven Decision Making for Business

Ted Kwartler

Data Dude

Poor Dale

Sad Analyst

Data-Driven Decision Making for Business

Hot dog research & development

Ketchup Banana Dog

  • A new product idea is pitched by the CEO (HIPPO alert)
    • People like bananas
    • People like hot dogs
    • Natural business opportunity
Data-Driven Decision Making for Business

Where's the data?

  • Predictive
    • Predictions require historical patterns. There are none.
  • Explanatory
    • Explanations are hard without data.
  • Exploratory
    • This is completely new territory for the company.

Relish Banana Ketchup Dog

Data-Driven Decision Making for Business

What is the point?

Peanut Butter Banana Dog

  • Cost vs. benefit
    • Possible unsold dogs!
  • Risk vs. reward
    • Making $1m a dog on paper won't help without a real demand.
  • Supply vs. demand
    • Demand drives the supply needed, which can aid cost vs. benefit and risk vs. reward.
Data-Driven Decision Making for Business

Exploratory market demand

Banana Hot dog Banana dog Banana hot dog
Mentions in the last 10 hours 50 88 7 3
Brand mentions (pct of posts) 17% 70% 4% 1%
Positive Sentiment 0.70 0.52 0.18 .48

$$

  • Few product mentions = no consumer saliency for the idea
  • No brand mentions = no consumer aligns a company with the idea
Data-Driven Decision Making for Business

Phew... avoided that nonsense!

$$

$$

Cost vs. benefit Risk vs. reward Supply vs. demand
Exploratory Banana-dog
Explanatory
Predictive
Data-Driven Decision Making for Business

Let's practice!

Data-Driven Decision Making for Business

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