Any business in this modern world of technology needs data. To make it in the realm of the internet, where an entire business – from customers to the business process itself as well as its goods/services delivery – can reside online, owning and using data wisely is a must.
In the past any business could do just fine with using a portion of the data it had in its possession – irrespective of the fact that there was still a lot of valuable data just sitting idle in its servers – as long as targets were met. That is not possible now. Every business needs to suck its data dry of all the information it can get out of it and that, sometimes, isn’t even enough because the commerce of today requires an ever-increasing amount of information to keep competitors at bay. The competition is very fierce and the only way businesses can get ahead in the market is if they can constantly make informed decisions. As a matter of fact, a small business making better-informed decisions can pose a serious threat to a much larger competitor – especially if they base those decisions on Big Data.
Any business that adopts and implements Big Data solutions can expect to have accurate timely information at the tip of its mouse pointers, which would not only help with decisions but a lot more, as we are about to see.
So, let’s start with the definition first.
What is Big Data?
Big Data is defined as sets of data that are too big to be created, stored, maintained and processed using software tools that are commonly available. Well, at least not with the desktop applications we use every day which, even if they could attempt to process it would succeed within a “tolerable” amount of time.
In short, it is data that is so big nothing you have could handle it in any way or form.
The main reasons for the immensity of the data is either due to the fact that it is collected from numerous sources or keeps streaming in continuously but from a fewer number of them.
So, why would any business even bother with data that is, basically, of no value to it?
Well, the trick lies in knowing that if you invest in having that data converted into information you will pretty soon find yourselves armed with tools that work towards your advantage: perfect and precise decision making.
But there’s more:
- Tentacles in Every Pot: having information coming in non-stop from all the data sources a business has ensures that whatever the final result may be (a report, a decision, etc.), it is based on input from all parts of the “empire.” This ensures accuracy in the end results.
- Selecting the Most Important Aspect of the Business: sometimes businesses can’t really figure out which part of their business is the most integral one. In fact, they [wrongly] assume that all aspects of a business should be treated equally and given the same amount of attention.
Well, the truth is that the “core” process of a business is the one that really matters – all supporting or peripheral activities (that can be outsourced, for example) come secondarily in comparison. Of course, this doesn’t mean that the other cells shouldn’t be run as efficiently as possible by the staff under them but just that they should always be thought of something that enables the “core” process.
And so, how is this “core” process identified – the answer can only be found from Big Data. For example, if the information the process outputs paints a complete and detailed picture of the end product/service, then it is a core part of the business. You could lose all other data and your business would still be able to run – this is the data to keep secure and the unit responsible for it is part of the businesses nucleus you can’t get rid of.
But, if the overall functioning of the business isn’t affected by the input taken in from that unit (or it doesn’t even matter if its data is even included) then that is a sure sign it is a unit that belongs in the “B” Division.
- Customer Identification and Retention is Easy: a business exists for its clients. Without them, there would simply be no point. And so, the best way any business can ensure its existence is by making sure it knows the wants and needs of its clients and customers before they have even asked for any of the regular or even customized services.
With the amount of data that is coming in from various sources, a business can paint a fairly accurate image of its customers and then not only address their present demands but foresee and precisely anticipate what they will want in the future.
- Enhancement/Improvement of Methods & Services: being able to sift through data that is intertwined with one another allows for a clearer image of what is being done right or wrong in the business. For example, a higher customer satisfaction noted whenever a particular employee (or a group of them) are on duty, could mean they are doing something very right to impress the clientele.
Based on these two data inputs (customer satisfaction vs. staff rotation) the business can then either replicate the staff’s way of working into the other shifts or use the exemplary employees as a template to make improvements all over.
All in all, what makes Big Data important to small businesses is that they do not need to remain small for much longer – if they make use of this extra-ordinary tool they will soon find themselves growing very fast indeed.
