Embracing Data-Driven Decision-Making: Lessons from Finance and Data Science Class

While taking the “Managerial Finance” course at President University with Dr. Stephanus Remond Waworuntu, I became intrigued by the discussions on whether a business plan would succeed as intended. We discuss the parameters and metrics from math calculations regarding future forecasts. It made me question whether my business idea was feasible and whether investments, business expansions, or capital loans made sense. Everything was data-driven, relying on debt ratios and business leveraging calculations.

In my data science class, Dr. Budi Rahardjo assigned us to watch the movie Moneyball, starring Brad Pitt. Despite being an older film, it provided valuable insights into using data to support decision-making.
Until then, I mainly relied on intuition and rough estimates when conducting business or expanding operations. While I knew that my actions might yield profits, I needed to be made aware of the extent of the effort and impact involved.

These two courses taught me that decisions shouldn’t solely rely on intuition but should be based on calculations and data. This is crucial to avoid biased perspectives. In the real world, for instance, if I were to establish a watermelon farm or a melon greenhouse, I would need to make detailed calculations to ensure the desired outcomes and prevent potential losses. I could measure the ratio between the expenses incurred and the possible profits generated. Doing so makes me accustomed to conducting thorough calculations whenever I make a business decision.

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