The expression big data has been around for several years now and, like many terms associated with the digital age, it tends to frighten the uninitiated. But, in simple terms, big data merely refers to the huge volume of data that comes into a business thick and fast from all manner of sources and, because of its quantity, is often stored off-site in the cloud. It encompasses everything from economic trends, new technology and international politics to client profiles and sales statistics, and much more.
Until relatively recently, only large enterprises saw the value of big data and had the wherewithal with their big budgets to employ the expertise required to take advantage of this mine of information to expand and develop their operations. But this is changing as SMEs become increasingly aware of the value of big data and are prepared to make the necessary expenditure to exploit it. Furthermore, because of their smaller size, SMEs tend to be more flexible and so more able to adapt quickly to changing circumstances and take early advantage of what big data tells them.
Analysis is the Key
The amount of available data is vast. Your company records will contain much more data than you think; youll find the usual records such as sales and cash flow statistics as well as all manner of details relating to the frequency and nature of enquiries you receive, clientele, suppliers and staff. And, if you know where to look, there is a plethora of other information available free of charge, a good deal of which might be relevant to your business – social demographics, weather data, consumer statistics and so on.
But all this data is virtually useless unless it is properly analysed in a timely fashion, so it has to be sifted to identify which is immediately useful and which can either wait or is irrelevant to the business. It is what you do with the data that is crucial, not how much data you have.
Hitherto, data analysis costs have been a major factor limiting the use of big data by SMEs. These days, however, there are plenty of relatively easy to use analytical tools available at reasonable cost and some, Google Analytics for instance, is free. And, of course, you can reduce costs and make your data analysis more efficient by taking a few simple steps:
- Identify areas where you think you currently have problems and where problems might arise in the future.
- Set specific, achievable goals.
- Keep your staff involved in the process they may already have ideas and workable solutions.
Using Big Data
Big data takes the guesswork out of your business planning because it is based on real data. As large enterprises are well aware, insights derived from analysis can bring significant benefits, whether these are in the form of reduced costs, refined processes or product and market development; all of which ultimately lead to increased profitability. It can help you re-evaluate your business strategies and point you in directions you might never have considered.
The requirements of each business are different but one common factor is staff so lets take a look how big data can impact on employees. First and foremost, big data can let you monitor staff performance practically in real time so that shortcomings can be quickly identified and rectified but staff will also be able to monitor their own performance. It will also indicate when and where staff should be deployed for maximum effect.
Cyber security, too, is of concern to all businesses; SMEs cannot sit back and think they are immune – more and more fall victim to cyber-crime because they are soft and lucrative targets. But while big data offers the criminal a tempting return, it can also help you combat attacks. This is because, like other criminals, cyber criminals always leave a trail and evidence of their activities. Correctly used, big data analytics can rapidly identify any anomalies, allowing you to take counter-measures more quickly so saving you from potential disaster.
Dont let Your Business Fall Behind
Big data has clear benefits for big enterprises and SMEs. As you become more familiar and expert in its use, those benefits will multiply and repay your investment handsomely. If you want to keep you business one step ahead of your competitors, then you cant afford to ignore the benefits of big data.
