In today’s business world, data is everywhere. Companies collect numbers on customers, sales, costs, and performance. With dashboards and analytics tools becoming common, it is easy to believe that more data will automatically lead to better decisions. However, recent experiences across industries show that this is not always true.
One common issue is poor framing of the problem. Consider a retail company that tracks daily sales across all its products. The data clearly shows which product sells the most units. However, focusing only on sales volume can be misleading. A product may sell well but have very low profit margins or high return rates. If the decision is based only on sales data, the company may promote the wrong product. Mathematical thinking helps by clearly defining the objective before analysing data. It forces the question of what exactly needs to be optimised.
Another example comes from performance evaluation. Many organisations rely on numerical targets to measure employee productivity. For instance, a call centre may track the number of calls handled per employee. While the data may show higher productivity, it may also hide a drop in service quality or customer satisfaction. The numbers are correct, but they do not capture the full picture. Mathematics teaches students to recognise such trade-offs and limitations.
Hidden assumptions also play an important role. Forecasting models often assume that past trends will continue. During periods of sudden market change, such as supply disruptions or demand shocks, these assumptions break down. Several businesses experienced inaccurate forecasts when historical data no longer reflected current conditions. Understanding assumptions is central to mathematical reasoning and helps decision-makers interpret results with caution.
These examples highlight an important lesson for business students. Mathematics is not about using more formulas or collecting more data. It is about thinking clearly, questioning results, and understanding limits. Data supports decisions, but it does not replace judgment.
In business, better decisions come from well-framed problems, meaningful comparisons, and careful interpretation of numbers. Mathematics provides the discipline needed to do this. It reminds us that more data is useful only when it is guided by clear thinking and sound reasoning.