How Big Data Will Help Small Businesses Achieve Big Strides

access_time February 18, 2019
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Big data is increasingly making its presence felt in every sphere and has already advanced the fortunes of companies in the healthcare, retail, banking, supply chain management, insurance and a host of others. Businesses generally make a critical analysis of crucial data to gain valuable information on their potential customers. And, this data would throw light on what their potential customers’ tastes and preferences are, the frequency of their purchases, their purchase patterns, etc. Businesses then leverage this valuable information to target potential customers with the right products at the right time. It has been shown that companies that leverage this data in the most profitable manner will show improved performance. Keeping this in mind, more and more big businesses are moving to incorporate data analytics into their every day operations A general feeling, however, has emerged among small businesses that the job of extracting and analyzing big – data are generally beneficial to big businesses only and that it involves huge financial commitments. But this is a fallacy as the benefits that will accrue as a result of data integration into an organization’s operations will far outweigh the expenses involved. Let us take a look at the manner in which the use of big- data will spur the growth of small scale businesses. Understanding customer intentions. Every organization would seek to provide its customers with the best ever customer experience possible. However, the ability to provide such experience would hinge on an organization’s ability to understand customers’ wants, desires and intentions. A critical analysis of customer data will then reveal what his product buying preferences are, the type of products he has bought over a period of time, its frequency, etc. Armed with this knowledge, small scale businesses can plan their marketing strategies and provide their target audience with the right product, enhancing the chances of finding a favorable response among the specific customers. Hiring the best talent Each company scouts for the best talent available to fill in positions, as poor hiring could be a drag on a company’s financial resources, apart from lowering productivity and losing valuable time looking for replacement. It is in situations such as these that the analyzing of available data on prospective customers would throw light on each applicant’s aptitude and qualifications, making it easier for employers to predict whether such candidates would either be an asset or a drag on the company. Using data analytics in the recruitment process would help SMBs discover better talent and understand the qualities that signal better output for the job. This is borne out of the fact that HR departments across every sector are increasingly turning to data- backed recruiting tools to automate most of their hiring processes Helping to shape future business strategy SMBs would reap rich dividends by having recourse to predictive analytics- an application of data mining technology- that provides organizations with the ability to make accurate forecasts based on available data on every aspect of their business operations. Wal-Mart is such a company that uses predictive analytics to predict trends and execute inventory management, proving that retail companies can improve their demand, supply cycles with this kind of technology, even if it is on a smaller scale. It would then be safe to assume that big data and its analysis are not for big players only. Every organization, big and small, can make use of the power of big data analytics to gather insights, and thanks to modern technology, the integration of these valuable data sets is simpler and more accessible to SMBs than ever before.

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