Sunday, February 7, 2016

Is Data Important for Your Small Business?


I’m sure you have been hearing Big Data buzz for the last while now. With increasing volume and variety of data available, it is easy to see that analysis of large datasets can uncover patterns, linkages and correlations that may be useful. It’s true, everyone is doing it.

It is for a good reason too; there is much value in it. Let’s take a look at the case of connected cities. Barcelona has been labelled as “The Most Wired City in the World” by Fortune magazine. Just look at a sample list of some of the technologies that have been implemented here:
  • Lamp posts with sensors & Wi-Fi, capable of measuring noise, traffic, pollution, crowd levels AND the number of selfies posted nearby
  • Digital chips on garbage containers to indicate when they fill up
  • Sensors under each parking spot

Of course, smart cities are just barely off the ground. The potential is very large in increasing efficiency and preventive measures. The energy and human labour cost savings are estimated to be about $17 Billion by 2019.

Much of the newly opened up potential stems from the ability to gather data and make decisions based on the analyzed information. Take a moment to think how having this data would be able to assist from an oversight perspective. Police can be dispatched based on increased noise levels in the area; traffic lights can learn the current traffic levels and any unusual slow-downs caused by accidents and adjust the timing to aid movement. These are just examples of simple intuitive solutions.

Let’s take this a step further. Picture Barcelona, but below the surface. There are underground fiber optic cables, separately run by each telecommunication company, each running below their full capacity. With varying demand, there are times when these are using only 5% of their capacity. Lastly, consider the fact companies don’t have an insight into what capacity others are running. However, now the solution is to knit the solutions into one system to allow monitoring of the capacity from each company and efficient re-routing of capacity as per the business need. This results in less underground work (each company will not need to dig and install a new cable), less costs for the company and increased monitoring of the demand.

We can go on and on about the capabilities of having various data for profit and efficiency purposes. Barcelona Football Club’s new stadium (expected completion year: 2021) is expected to not have any fences and provide Wi-Fi. Companies will be able to get and analyze data about people who are there and link fans directly to merchandise, based on their preferences. Well, you get the point.

Useful data, however, is not only Big Data. Majority of smaller businesses have data that can be used for similar benefits, at a smaller scale. If you are a business owner, you can also find the value in data analysis.

Why are some businesses not doing anything with their data?

It is possible that some business owners are not sure what insights would be useful to understand, since the focus of their work is day-to-day activities. It’s fair, running your business is tough enough and it is easy to blur the long-term picture.

Another reason could be is that some business owners know what insights they would like to see and understand but they lack the data; they don’t know how to properly gather, organize and put the processes in place for tracking. It’s true, data need to be gathered before analysis can be done.

Another possibility is that some business owners also know what insights they would like to see but don’t know how to analyze the data they have on hand.

Realizing the importance and the potential value that data insights can bring to your business is the first step to maturity. Our team will be posting piece-by-piece framework of the data maturity model developer here at Surge Analytics.

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