The Data Challenges of Decision-Making Processes and Their Influences in the E-commerce Sector.

Online retail businesses face an increasingly competitive environment and constant challenges to maintain their competitive advantage.

In this context, Key Performance Indicators (KPIs) play a crucial role in helping them measure their performance and make real-time informed decisions. However, the use of KPIs in data processing can pose significant challenges for e-commerce companies.

In this section, we will explore the various data challenges that companies face when using KPIs.

Data Challenges That Can Hinder the Use of KPIs:

Lack of Quality Data

Lack of quality data is a common problem, with 83% of companies considering data quality as a significant issue, according to a study by Experian.

Poor data quality can lead to incorrect analysis and erroneous decisions.

Difficulties in Integrating Different Data Sources

E-commerce platforms often have multiple data sources, such as sales data, marketing data, and logistics data. However, integrating these diverse data sources can be challenging as they may be stored in different formats and come from different systems.

Data fragmentation can make it difficult to create a comprehensive view of the company's performance. Therefore, companies need to invest in robust data management tools to effectively integrate all their data sources.

Data Synchronization Issues

Data synchronization is another significant challenge for business teams when using KPIs to measure their performance.

Data is generated in real-time and can come from various channels such as social networks, websites, ERPs, CRMs, etc.

Improper data synchronization can result in incorrect analysis and inappropriate decisions. For instance, if a company uses outdated data, it may make decisions based on obsolete information.

Data Security Risks

Companies need to ensure that data is stored securely and only accessible to authorized individuals.

Data breaches can have serious consequences, including loss of customer trust and a tarnished reputation.

According to a study by IBM, the average cost of a data breach for a company was $3.86 million in 2020. Therefore, companies must invest in effective security measures to protect their sensitive data.

Overcoming the Challenges of Using KPIs

Find the answer in our Practical Guide to Mastering the Concept of KPIs (Hyperlink) #semanticcohesion

Feel free to also check out the Amazon use case to discover the KPIs that helped the e-commerce leader overcome its performance-related challenges. #semanticcohesion

The Economic Advantages Hidden Behind These Challenges

Better Decision-Making through Quality Data

By overcoming the challenge of lacking quality data, online retail companies can make more informed decisions based on accurate and reliable data.

This helps them identify market trends, customer preferences, and buying behaviors,
allowing them to adjust their strategies to meet customer expectations and increase revenue.

For example, Amazon uses data-driven recommendation algorithms to suggest products to customers, contributing to increased sales.

Optimization of Company Performance

By effectively integrating different data sources, managers can have a holistic view of their company's performance. This enables them to identify areas for improvement, such as logistics or marketing, and make strategic decisions to optimize performance.

For instance, using sales and logistics data, one can identify top-selling products and expedite their shipping, which can enhance customer satisfaction and improve profit margins.

Enhanced Customer Experience

By using data to better understand customer preferences and needs, e-commerce platforms can improve the customer experience.

For example, leveraging purchase behavior data, companies can offer personalized deals to customers, increasing their satisfaction and loyalty.

Additionally, ensuring proper real-time data synchronization allows companies to quickly respond to customer demands and improve responsiveness, leading to increased customer satisfaction and loyalty.

Ultimately, this can help companies grow their revenue and profitability.

The lack of quality data, difficulties in integrating diverse data sources, data synchronization issues, and data security risks are threats that can hinder company performance.

However, by overcoming these challenges, there are numerous advantages to be gained. Better decision-making through quality data, optimization of company performance, and improved customer experience are all economic benefits that can be obtained.

Therefore, it is crucial for companies to establish a strong data governance model and framework to ensure effective business intelligence decision-making processes

By investing in quality tools and processes for data collection, storage, analysis, and presentation, companies can make informed and accurate decisions to secure their prosperity.


Inferensia is a data and innovation consultancy that brings together strategy consultants and other experts. We develop strategies to transform public and private organizations while making data a growth factor.

Beyond the collective and individual interest of its teams, Inferensia also positions itself as a major player in innovation for its clients, thus incubating the best ideas of our partners, clients and collaborators. We do not focus solely on "Delivery", "Technology" or "Doing" (traditional vision) but above all on ROI and usage (innovative vision) on which our achievements are based.