The problem with “Big data” is that it gives the impression of servers of information, of something only open to large corporations that build data clouds with petabytes of information while small businesses have to make due with inferior programs.
That is not true at all. In fact, small to medium businesses (SMBs) have serious advantages in using data as they are closer to the ground and can change faster. SMBs can also take advantage of the growth in big data analytics, which uses analytics to identify important patterns in data and come to a conclusion.
Don’t think of Big Data, but rather of Smart Data which requires innovation and a willingness to change. Companies that can innovate with data will thrive over their competitors regardless of size. A few examples and keys should show how a small business can use big data analytics to get the most out of its resources.
1. What is the Problem?
Technology and data is a means to an end. It is not an end in and of itself. As Keith Carter with Search Business Analytics observes, copying increasing amounts of big data into spreadsheets and relentlessly categorizing it “typically provides no value in and of itself.” This is another reason why I don’t like the word “Big Data”, as it encourages such big, wasteful behavior.
Before setting up a cloud-based platform or using analytics, a business needs to answer what problems it wants to solve with data. This can range from gauging customer satisfaction to finding ways to improve on supply chains. But data for data’s sake is a waste of time.
2. The Right Kind of Data
While there can be such a thing as too much categorization, businesses need to make sure to focus on the right kind of data. Web traffic is a good example. Every business wants to increase web traffic, but the real goal should be to target specific demographics which your business truly desires.
At the same time, businesses have to ensure that different departments share the different kinds of data they possess so that a data analytics program can have more information from the whole company and not just a part. The digital software data company Cloudera points out that the most successful companies which use data can easily share sales data or production data with one another.
If you regularly use Uber, you have probably heard of surge pricing, where Uber changes the price of rides when demand is high to encourage drivers to drive in busy hours.
