‘Big Data’, as it’s known, can make a big difference to the way your small business is run.
Once the preserve of large corporations with larger budgets, now small businesses can use the massive amounts of online and offline information available to inform their decisions and help their businesses thrive.
What is big data?
According to SAS, a leader in business intelligence and analytics:
“Big data is a term that describes the large volume of data – both structured and unstructured – that inundates a business on a day-to-day business. But it’s not the amount of data that’s important. It’s what organisations do with the data that matters. Big data can be analysed for insights that lead to better decisions and strategic business moves.”
How can big data help your small business?
In the last decade, software has not only become more powerful, but it has also become more accessible. Now, small businesses can access some of the same data tools as their larger rivals to make more informed decisions and ultimately boost their bottom line.
With so many big data tools available, the real question small businesses now have to ask is what value they can get out of their data. Once they have determined what data is most relevant to their business, they can then look at the tools available to access it.
Here are a few of the different ways the right data tools can help your small business thrive…
1. Products and services can be improved
With any number of tools designed to capture user data, businesses can accumulate information about the behavior of their customers and devise effective strategies to improve their prospects. Big data can help businesses gain a better understanding of:
- The requirements of prospective customers;
- How well their products and services are meeting these demands;
- The changes that could be made to improve their products and services.
2. The outcomes of business decisions can be tracked
The wide range of analytics information available to small businesses allows them to track the outcomes of their promotional strategies and the marketing decisions they make. Being able to see what works and what doesn’t helps businesses increase value by improving their decisions in the future.
3. Gaining a competitive advantage
Identifying and implementing the right data tools can give small businesses a competitive advantage over larger and more established rivals. By providing insights into the competition, small businesses can identify those areas where they are lagging behind, as well as those where they outperform their rivals.
Data tools can extract information to help you:
- Identify where you might be going wrong;
- Understand what your competitors are doing differently;
- Understand how consumers’ are reacting to your competitors;
- Better position yourself in the industry.
The value of big data for small businesses
While some small businesses can be daunted by the power of big data, those that know the problem they’re trying to solve can actually use data tools more effectively than their larger rivals. Small businesses have an advantage because they’re looking at more specific problems and a much more manageable data set. Small businesses also have the advantage of agility, so they can act on the insights their data tools provide.
To find out how KPMG Small Business Accounting could help free up your time so you can concentrate on business success, request a callback for a quote today.
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