Small Businesses and Big Data Analytics
Big data is influencing business decisions in boardrooms all over the world. Big data analytics actionable insights underpin every new product, feature, or business. Previously, Big Data was only used by Fortune 500 companies. But, now everyone is making use of it.
Big Data is still available to Small and Medium-sized Enterprises, thanks to the advent of affordable big data analytics tools and cost-effective data sources (SMEs). However, the rate at which SMEs utilize Big Data is alarmingly low. SMEs must take advantage of Big Data’s capabilities to stay competitive, make better decisions, and expand.
SMEs can use existing and future Big Data capabilities:
- To focus on current trends shaping their markets for more informed decisions
- Analyze their data against their competitors to get an edge over the competition
- Identity future market trends
- Prepare their strategies accordingly
So much more is now possible with Big Data. Big Data can also provide the same opportunities and avenues of growth and expansion to SMEs as it does to big corporates. SMEs have an advantage that big corporations don’t have.
SMEs operate on a more flexible frame than most of the Fortune 500. It means they are in a better position than big corporates. Hence, they can better implement business decisions gained from the actionable insights made available by Big Data.
How can small businesses make better use of big data?
1. Know Customers Better
Big Data allows SMEs to know their customers and their audience better. Using Big Data, SMEs can analyze why customers buy, how they buy, and what they prefer. But this is not all.
SMEs can get in-depth analytics data on their customers’ purchase history and preferences and plan their product strategies accordingly. Social media data analysis could also provide SMEs with insight into how their customers interact with their brands.
2. Focus On The Latest Trends
Using Big Data analytics, SMEs can study their data with the market data and the data on their competition and identify patterns and trends. It will also give them a greater insight into the market landscape and identity and implement future growth strategies.
You can see what’s popular every day on social media, making it easier for businesses to figure out what their customers want. Various sectors use data to assess market trends and make more effective strategic business decisions.
Retail, healthcare, hospitality, travel, and internet shopping are just a few examples of industries that rely heavily on market trends. Small enterprises can compare their business data to external data such as economic conditions, foreign direct investments, etc. These statistics help them build a detailed picture of what people are likely to buy.
3. Fine-Tune Operations
Big data enables SMEs to conduct in-depth analyses of their company’s current and historical performance. It allows them to focus on loops and gaps harming business growth and tweak their operations accordingly.
It will boost the company’s operational performance and propel it forward. Analytics can be beneficial to any organization, and it is where big data enters the picture. Small businesses can use it to track the results of their internet marketing, promotional plans, and market research.
It assists them in making better judgments to get better achievements in the future. Companies can make future predictions about their products to minimize business risks.
4. Study Market Competition
Sometimes, the most incredible business insights come from studying the competition to discover what they are doing and how to perfect it for one’s success. With the easy availability of data, SMEs can study their competition in-depth and identify threats or strategies that might give them an edge over the competition.
Understanding your competitors used to be as simple as looking at their website and occasionally pretending to be a consumer. But now, you don’t even need to check what your competitors are doing. Google trends offer insights, and social media analytics can give you the exact numbers.
Twitter and Facebook will provide you with an idea of what customers think of them. After collecting all this information, you can analyze and compare it with your business model and offerings. Remain one step ahead by keeping all the data and using it effectively at the right time by using big data tools and technologies.
5. Business Information Analysis
Every small business has the same problem: figuring out what kind of information is most relevant to their industry. When you consider design, sometimes less is more. Preparing a collection of questionnaires with key details most relevant to your organization is the ideal place to start.
Ideally, you should identify that information that can increase your business’s bottom line and service offerings, and it means data that can help you increase revenue and cut operational costs. For example, if you are into the travel & tourism industry, you need to understand the best time of the year to travel, most favorite places, etc., to offer the best possible service.
6. Technological Requirement
Using technology in the right place could be the best possible business strategy. With the right technology, you can overcome many difficult business obstacles. While analyzing technology needs, it’s essential to examine its flexibility and simplicity.
Big data analytics is the most effective technique for giving your company a technological advantage over its competitors. It can also assist you in achieving the maximum level of client satisfaction. Tools are available, from managing corporate operations to monitoring market trends and purchasing habits.
7. Easier Decision Making
Big corporates may have more money and workforce, but they lack the speed and agility to respond quickly and make decisions instantly. SMEs thrive in reacting to changes in real-time and making quick decisions.
Small firms can afford to take chances and make quick business decisions, whereas large organizations require time to implement any business ideas since they require several approvals and evaluations. They can collaborate with intuition, and big data lends insight into what is trending now while making future predictions.
You must have the capacity to make quick changes if you want to stay competitive in the market. When something is popular, it is time to seize the opportunity and profit from it. Big data enables small businesses to ride the wave better.
When it comes to making business decisions and responding to obstacles, flexibility is crucial. Taking cues from unfavorable data and answers, rather than letting clients slip away, is critical to reducing turnover.
Small businesses have the same access to big data as large enterprises. Big data can transform how a company runs. Implementing a big data strategy would alter how small businesses operate.
The first step is very vital. Don’t expect it to be too big. Use data analytics for the right process. Make your goal very clear. Data can be collected from any source, but big data can do magic if a small business identifies the right source.
It is better to start by understanding the importance of data that a small business generates. There is no requirement to install any sensors to capture data for analysis. Analyze the data you have from social media and websites to start with.
Mining that information for helpful insights is an excellent first step before entering a big data strategy. Small businesses should define their objectives and desired outcomes, and companies will waste a lot of time collecting and evaluating data if they don’t have a clear direction.
Small firms can proceed with confidence and experiment with data if they have a clearer picture and aim. Thinklayer offers state-of-the-art Big Data analytics services to Fortune 500s and SMEs, helping them reach insights that drive business growth.