A continuous deluge of detailed reports sporting complex charts, graphs and reams of digits is the first consideration that comes to mind when we see the word "Data". Its crucial importance can neither be ignored nor confused. This is due to the fact that 'management is a science as well as an art', and data is what moves every logical and scientific premise toward theory and fact.
With each passing day, organizational databases are increasing in number and capacity, and in this situation, the key lies in the efficient management of this data. This combination has led to the widespread use of concepts like data mining and warehousing. Data mining efficiently uses stored information for the purpose of analysing potentially profitable associations in subtle patterns and trends, constantly delving into new ways of making all of this data a valuable asset rather than just a useless expense.
The immediate advantage of this approach is the elimination of subjectivity from our information related decisions. This is because we cannot ignore the clear indications from figures. Too much emphasis on these facts and figures can lead to a loss of departmental coherence, causing an organization to break down, however, a cautious usage of this information can bring about extraordinary gains. The implementation of any system based on calculation requires that the data be unbiased, statistically accurate, precise, complete, current, non-redundant, and credible in the required framework.
A Data based method removes stereotyping and pre-conceived ideas, filtering out the not-so-useful applications from the profitable ones. Facts and figures lead to objective judgement - without leaving any room for prejudice. This "Technical Analysis" method uses past figures to predict the future ones, and having been widely recognized as a valuable system in the stock markets, Forex and the commodities markets, it's used today for predicting the probable volume of trading and share price by using past archived values.
The same principle can be very insightful in any judgement of human performance. As we all know, first impressions are rarely accurate. There are often cases where an individual doesn't seem to be useful or productive, but then surprisingly, performs better than the rest. Or in another instance, there may be a situation where someone who is spoken of very highly by others, fails miserably when it comes to actual performance. Here we can see that subjective impressions - unlike the accuracy and reliability of performance data, can often fail to yield any sort of consistently expected results.
In conclusion, a data based approach is definitely better than any form of subjective consideration as the former eliminates any unfounded beliefs which were formed without reason, and it does - so to speak, 'hit the nail right on the head'.
