Business Analytics and Informed Business Decisions

Managers get caught up in following the crowd because they fail toperform a trend analysis for their own businesses. They assume thatif an emerging practice worked for other businesses, it will mostprobably work for their business. According to (Power et al, 2015),trend analysis involves identifying areas that the business isperforming poorly and then evaluating whether adopting new practiceswould improve the area. Taking blind leaps under the impression that‘if it works for others then it will for me too’, is not worththe risk. Every major decision in a business should be arrived atafter calculating the risk.

Managers can ensure that they are doing what is best for the businessby considering the cost-benefit effect of adopting the trend. Themanagers should also explore the associated costs and benefits, ofthe trend, that are endemic to the business instead of relying oninformation from other organizations.

My organization deals in products that specifically target oldpeople. With the trending use of mobile apps for online shopping, themanager decided to create a mobile shopping app for the organizationas well. He seemed to have forgotten that his clientele rarelydownload mobile apps to use in shopping. However, because the trendhad been a success in many other businesses, he thought it would bewise to duplicate it. Needless to say, only a couple of shoppers usedthe app.

Businesses can learn from the mistakes of others by doing a thoroughanalysis of their organization before adopting a common trend. As thecliché goes, do not fix it unless it is broken. The same ideologyapplies to following the crowd aimlessly.

Reference

Power, D. J., Sharda, R., &amp Burstein, F. (2015). Decisionsupport systems. John Wiley &amp Sons, Ltd