Small businesses are often unable to effectively compete with their larger counterparts in their industry due to lack of access to some of the resources that the big companies have.
Fortunately, the digital age has brought forth technological solutions that have more-or-less evened out the playing field. By taking advantage of low-cost data solutions, small businesses (SMB) can make themselves more relevant to their fields.
Unfortunately, most SMB owners have not gotten on-board this train. According to a recent report, a lot of SMB owners are slow to adopt digital solutions due to cost concerns. However, this is untrue as there are cost-effective technological solutions that you can incorporate into your business strategy to realize more success. Among these solutions are data services. This article will discuss what you need to know about data services. What is Data Services? These are software solutions for all your enterprise data requirements. Hopefully the following questions will assist in helping people understand data services.
1. Why are they Relevant?
A: Today, almost all human activities and operations taking place around the world generate data thereby resulting in an extremely large and complex dataset. This big dataset is what is referred to as big data. When people hear about big data, they often associate it with something that only large corporations use. However, this is a major misconception as big data can also help small businesses. When SMBs leverage big data in conjunction with an array of data solutions, a small business can derive meaningful and helpful insights which may enable them to generate more profits and expand their business.
2. How Do They Improve Decision Making?
A: Any effort that a company undertakes to gather information is a good thing as it helps them to make better, informed decisions. When a business gathers the right data in a bid to answer some critical business decisions, it allows them to be more competitive and successful. The key to knowing what data you need is to identify your strategic questions.
Thus, do you know what you need to achieve your goals? As such, there needs to be widespread access to data across the organization to help everyone make fact-based decisions. Therefore, it is not just the top-level decisions that need to be backed up by facts and data.
3: How Do They Help You Understand Customers Better?
A: One critical key to business success is understanding your customers better so you can know what they need and, thus, provide it to them. Big data offers businesses insight on who their customers are and what they’re interested in. By utilizing the data’s objective lens, you will go from thinking about your customers’ behavior, to actually knowing it. Moreover, after analyzing the data you have gathered, you will be in a better position of identifying consumer trends and predicting market opportunities. Predicting marketplace changes is critical in maintaining your agility and responsiveness to the dynamic nature of customer needs.
4: How Do They Help You Deliver New Services?
A: Big data does not only help you deliver better products to your customers, but it also assists in creating an entirely new customer value proposition. For instance, Rolls-Royce recently added a data-based service element to their products. The auto-manufacturer now incorporates sensors in their jet engines to monitor their performance. By utilizing the data derived from these sensors, the company can monitor the engine’s performance so they can predict its maintenance needs. In the same way, you can consider the various ways that you can use data to enhance your services. This is going to give you a significant edge over your competitors.
5: How Do They Improve Operations?
A: The benefit of using data in your business operations is that it eliminates problems caused by human errors. It makes your processes run smoothly, from the warehouse to customer services. The reason behind it is that data allows for machine-to-machine communications which enable automation. The machines collect data, analyze it, and act on the insight derived from the processed data. Thus, the result is improved quality control while eliminating wastage.
6: How Do They Help You In Monetizing?
Companies that have monetize their data tend to be among the most successful businesses in the world. Monetizing data implies to either build your whole business on data or to generate your income from data. Therefore, you can turn your data into a key business asset. Data can be monetized in two ways; It can either increase the overall value of the organization or you can sell the data to interested parties.
For example, when Facebook took over Instagram for $1 billion, Instagram had just 13 employees. However, the reason behind the huge amount paid for the relatively small company was its valuable data and analytics.
As such, when you have access to data that can be valuable to other parties as well, you can sell access to that data to generate even more revenue.
We are living in a digital world which is powered by data. Any business that does not take advantage of data to get insightful information is going to lose its competitive edge. By getting data services, small businesses stand to get better in every aspect of their business.