Data Analytics: Practical Guide to Leveraging the Power of Algorithms, Data Science, Data Mining, Statistics, Big Data, and Predictive Analysis to Improve Business, Work, and Life

Chapter 5: Big Data for Small Businesses?
Why not? 
 
Small businesses sometimes lag behind large companies when it comes to
cutting-edge technologies, mainly because they simply cannot afford it.
When it comes to big data, many large corporations have embraced it, and
this has led people to believe that this is one of the cutting-edge
technologies that small business will have trouble adapting. The truth is, to
employ data analytics; there is no need for complex systems that are
resource hogs. Small business may employ big data, as the most important
components are based on developing human resources: how skillful the data
analysts are, how much attention to detail they are, and how well-organized
they are. Any company that has the capability to gather relevant data and
analyze it critically will be able to create and seize new opportunities. Big
data may be used by small businesses to improve the quality of their
products and services, better tailor their marketing strategies, and even
foster better customer relations. These are all impactful on a businesses’
bottom line, and the use of big data to achieve this does not have to be
prohibitively expensive.
 

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The Cost Effectiveness of Data Analytics
 
Why is cost an issue, anyway? The reason that costs are always accounted
for before a vital business decision is made is that the cost has a direct
effect on the decision’s profit potential, and therefore viability. If a small
business increases their net revenue by 30% through new techniques, but
their costs have gone up by 35%, the net profit decreases, and the
innovations introduced will have turned out to be detrimental. However, it
will spell doom for a business if they do not innovate, while their
competitors adapt new techniques and technologies.  Most companies have
begun to use data analytics, and it would be folly to ignore the opportunity
to make use of this field as well. As said earlier, the use of big data helps
create opportunities, and oftentimes these opportunities reduce costs and
increase revenues. Small businesses should consider using it, as they grow
much as large corporations do: by taking advantage of new business
opportunities.
 
 
 
 
 

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Big Data can be for Small Businesses Too
 
There are certain traditions that come with running a business, no matter the
size. Oftentimes, the inertia proves too much for a new technology to
effectively gain a foothold. Developers try to get around this by pushing
their ideas on large companies, as these have deeper pockets and a larger
profit margin, and can therefore afford to test new concepts. This is what
happened when big data was first introduced. The software solutions
marketed to businesses were based on the advantages of an economy of
scale. Small businesses have problems with creating economies of scale,
however, as they often struggle to build base capacity to begin with. This
leads many to think that big data isn’t for them, especially as many of the
existing software solutions require a large capital outlay in order to properly
operate. However, innovators have developed data solutions that are viable
for small companies as well. These solutions allow small businesses the
capability to use the appropriate tools for their operations. They can then
begin to catch up with the bigger companies, as big data increases
efficiency and productivity, allowing a company to expand its market share.
Unless these smaller companies start to adopt this, however, larger
companies will eventually run them out of town.

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Where can Big Data improve the Cost Effectiveness
of Small Businesses?
 
Social media is a new development that allows for greater and greater
connectivity between people. Small businesses can use social media sites
such as Facebook, Instagram, Twitter, and other similar websites in order to
gauge consumer trends. This can lead businesses to get ahead of the curve
and rapidly capitalize on emerging trends. A strong social media presence
can also contribute to rapid client base growth, especially with effective use
of the site’s consumer analytics and ad platforms. This moves away from
traditional marketing strategies, and requires implementation of different
strategies, such as incorporating targeted ad strategies to display ads to
those who would most likely buy your companies’ product.
Another method would be the launch of online services. Any website can be
setup so the administrator can analyze the customer’s tendency to visit the
site, as well as study their habits, such as their most frequented pages.
These little details can assist a company in developing a better website
designed to better appeal to their customer base. These are all cost-effective
solutions when done properly, and can easily be as beneficial to small
businesses as they are to large corporations.
 
 
 

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What to consider when preparing for a New Big Data
Solution
 
As a small business, a mass produced data solution will not properly serve
your needs. A small business needs a data solution tailored for their specific
needs, which will help gather relevant data, as well as help in its analysis.
This solution should also be streamlined, in order to do away with
superfluous functions and to reduce costs. A good data solution should also
be able to take advantage of and be able to work alongside the pre-existing
solutions of a business, as well as its systems. At the end of the day, a small
business needs a solution that is integrated and conveniently packaged. A
solution requiring a complete overhaul of the business’ pre-existing system
may not be the best choice, as it would be very costly and would take much
time and resources in order to return to a “business as usual” state.
One way to address this is to bypass the massive integrated solutions, and
go for the smaller modular data solutions. These data solutions could be
developed for specific departments, as all they have to do would be to lay
out their system requirements, justify their costs, and then be able to
conduct their own research as to which solution best addresses their needs,
rather than going for a costly data solution that will apply to the whole
organization. This would allow a small business to make use of multiple
solutions, each tailor-fit to the relevant department. This allows a
department to increase its efficiency while minimizing interference with
other departments, as well as keeping costs down.
Another thing to remember is to obtain a data solution that can be easily
deployed. This also means that there should be a relative ease of use for the
end users. A data solution that takes more than a few weeks to deploy, from
testing stage to final integration, may not suit the needs of a small business.
Small businesses cannot afford the loss in productivity that a prolonged
period of downtime would bring. Small businesses will also have a hard
time using a data solution that requires too much specialization, as they may
not have the resources to train or hire personnel who can properly make use
of the system. In addition, acquiring a new big data solution will be

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pointless if it is too complicated to properly use, as the entire point of
obtaining a data solution is to improve efficiency and effectiveness, and to
create new opportunities to be taken advantage of. The best data solution
would be one easy enough to use that a new user can learn it quickly, rather
than having to undergo specific training just to employ it.
As a small business with limited resources, one of the most important things
to consider is the overall cost. A versatile data solution would be best, as
the use of its capabilities can be increased as the company begins to expand.
The data solution offered should be designed such that a company only has
to pay for the capabilities that they actually use, rather than paying for all
the bells and whistles. However, as the company expands, a greater amount
of capabilities of the data solution will need to be employed, and as such,
there should be a licensing option to allow access to these greater
capabilities as the company grows.
It is possible, and very practical to make the switch from a traditional
intuition-based business to an analytics based business, even when the
business in question is small. All that is needed is the proper identification
of an IT solution that will suit the size and purpose of the business involved.
Once this is done, the business will be poised to reap the benefits associated
with the use of big data, the chance to create and take advantage of new
opportunities.
 

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