What is meant by the term “data-driven decision making”?

The term “data-driven decision making” refers to a methodology where decisions are made based on the analysis of empirical data rather than relying on intuition, tradition, or anecdotal evidence. This approach emphasizes the use of quantitative metrics and analyses to gain insights into business operations, customer behavior, or market trends, leading to informed and strategic choices.

By leveraging data effectively, organizations can identify patterns, uncover insights, and validate assumptions, which ultimately enhances decision quality. This practice can improve efficiency, reduce risks, and foster innovation as decisions become grounded in actual performance and evidence rather than subjective opinions or past practices.

The other options do not align with the concept of data-driven decision making; they rely on subjective beliefs or traditional practices rather than empirical evidence, thereby lacking the necessary rigor that data analysis provides.