Big data is one of the most talked about industries in the world today. Everywhere you look, you read about how data is being applied to solve the world’s biggest problems or how it’s being called the next frontier for innovation and competition in the global economy.
Despite all the hype and growth surrounding the industry, a closer look will show that its effects have mostly been for the big corporations. Small business owners have yet to fully experience the advantages that big data brings, mainly because it usually requires a significant investment in resources, which they often can’t afford. But this shouldn’t lead small business owners to automatically disregard big data.
Here’s how big data can help small businesses improve and grow to be able to compete with established companies:
1.IMPROVE PRODUCT OR SERVICE
Rather than guessing, a better way to improve your products or services is by collecting and analyzing data on how customers use them. This allows management to make data-driven decisions on what improvements should be made. Learning more about customer habits and preferences can not only lead to better products and services, but it can also help small businesses to create a personalized customer experience, which is something that established companies can’t readily do.
2.FIND NEW MARKETS
Understanding customer habits and preferences can help small businesses make better predictions on what markets will be worthwhile to pursue. Applying big data to a market analysis can put SMEs in prime positions to tap new customers and get a foothold in the market before established companies can come in.
3.INCREASE EMPLOYEE PRODUCTIVITY
Applying big data to the HR department’s tasks can lead to a more productive workplace for small businesses. It allows management to objectively track employees performance and see where improvements can be made. The use of big data in HR can also help in the creation of better employee training and development programs, which should lead to a better overall performance of the workforce.
There are in fact many more benefits that can be derived by small business owners. If you’re a small business owner, the best thing to do right now would be to start learning about up and coming developments in big data. Because given the rapid growth of the industry, it shouldn’t be a surprise to see many more benefits emerging in the future.
The bottom line is, despite the high barriers to entry, big data is a worthwhile investment for small business owners in the long run. And given that big data will become much more accessible in the coming years, given the recent developments in cloud technology and data storage, it’s definitely the right time for small business owners to start getting into the industry.