The Impact of Data-Driven Decision Making on Organizational Resilience

Abstract

With the growing volatile, uncertain, complex, and ambiguous business environment, organizational resilience has become a key competence in the long-term sustainability and competitive advantage. This paper discusses the value of data-driven decision making (DDDM) in organizational resilience, especially the systematic use of data helps an organization become more resilient and adaptive to disruptions, effective response to crisis and adaptation to changing conditions. The paper discusses the mechanisms that enhance strategic, operational, and adaptive resilience through data analytics, real-time information, and evidence-based decision processes with the help of information systems research, the literature on resilience, and management theories. The research is based on a conceptual and empirical view, where prevailing research is synthesized and organizational practices synthesized which incorporate advanced data analytics, business intelligence tools and predictive modeling in decision making structures. These results indicate that companies that use data-driven decision making have a better situational awareness, faster reaction, and better-informed strategic decisions when confronting uncertainty. The past disruption can also be learnt through data-driven practices so that organizations institutionalize knowledge and improve risk management structures. In addition, the research also identifies organizational culture, leadership support, and data governance as means to realize the maximum benefits of resilience offered by data-driven approaches. The paper makes its contribution to the literature by creating a definite connection between the data-driven decision making and resilience of organizations by stating that data does not make a difference without suitable analytical skills and human judgment. Managers and policymakers who aim to create resilience in their organizations by investing in data infrastructure, analyst skills, and cross-functional cooperation are given practical consequences. In general, the paper highlights data-driven decision making not only as a technological breakthrough but also as a strategic strength that can make an organization more resilient to the ongoing change and disruption