The availability of data to those working in the collections industry has never been greater. Collection agencies have access to more data than ever before. How that data is analyzed and integrated into the operation of a collector will differ from company to company. But what is clear is that companies of all shapes and sizes are trying to figure out how to maximize their recovery rates and be more efficient.
A pair of professors have published a study that analyzes the growth and use of data-driven decision-making at corporations large and small. As the CEO of Netscape once said: “If we have data, let’s look at data. If all we have are opinions, let’s go with mine.”
The use of data-driven decision-making (DDD, for short) tripled between 2005 and 2010 within manufacturing plants worldwide. The manufacturing plants that were best at adopting a DDD framework had four common characteristics:
- High levels of information technology
- Educated workers
- Greater size
- Better awareness
Awareness was cited as one of the key drivers of adoption, when it came to DDD.
Last but not least, even DDD-ready firms may lag behind due to a simple lack of awareness about its benefits. In order to adopt DDD, firms first have to learn about emerging practices and how they might work (or not) in their particular organization. Plants that report a larger number of opportunities to learn about new management practices – like hearing about it from other units of the same firm, from outside consultants or new employees, or from trade associations or supply chain partners – are far more likely to report being at the frontier of data-driven decision making. If you share this article with your co-workers, you might see your own firm’s use of DDD jump up a notch.
