How SMEs can Make their Business Smarter with Data Science

How SMEs can Make their Business Smarter with Data Science

by October 12, 2022 0 comments

Businesses of all sizes generate a lot of data, and with increasing use of digital technologies, this data is growing further by leaps and bounds. Many small organizations simply don’t understand the value of this data and the benefits their business can gain by leveraging it. They can enhance efficiency, reduce costs, understand the right demographics for their products and services, analyze cost of client acquisition, do competitive analysis, meet seasonal demands, and recruit the right talent, to name a few.

Unfortunately, though most SMEs have stockpiles of historical data from their sales, marketing, HR, finance, etc. they don’t know how to analyze it. Traditional tools are not enough to extract insights from this data, and most SMEs tend to think otherwise. There are so many different types of data that even small businesses use every day. You’ll be surprised how quickly this data reaches mind-boggling volumes and you can’t really analyze it because your systems aren’t powerful enough to handle it. This is where you need data science tools and systems.

How Does Data Science make a difference?

Data analytics can work its magic if you use the right technologies. Small firms may save operating expenses, strengthen their company model, boost income, and differentiate themselves from the competition. Furthermore, many human data analysis activities may be replaced with automated business solutions. Significant improvement in the management of business risks is critical in SMEs since, although a large firm has the financial resources to swiftly recover from mistakes, the picture is completely different for smaller enterprises. Implementing particular approaches based on Data Analytics is one of the greatest ways to deal with company risks.

Internalizing complicated services such as market research and technological innovation depletes small enterprises’ resources. This is where SaaS-based analytics technologies come in to help smaller organizations gain access. Profitability is the key to running a successful business. The outcome will be disastrous if an SME is caught off guard when a huge partner firm is poised to go bankrupt. However, with the development of powerful digital technologies like predictive analytics, such risks may be greatly reduced or eliminated entirely.

Even tiny firms spend on advertising, but understanding how much they’re spending on it vs the overall return can be challenging. This is where data analytics can help. You could measure how much money you spent to onboard new customers and how much profit you made by selling your services to them by using data analytics.

Another area that benefits from the usage of data is security and privacy. The number of zero-day attacks that are happening nowadays has been growing considerably. Traditional security software is not enough to detect such attacks because they’ve not yet developed the vaccine for them. That’s why, nowadays, a lot of PC hardware is coming with built-in AI-powered security tools that can detect patterns of malware attack and prevent them from harming your system.

Why Small Businesses Need Data Analytics?

Here are the key reasons micro or small business should consider analyzing data and derive data science-based solutions:

Demographic Understanding

Understanding market sentiment and demography are two of the most important variables for every organization. Unfortunately, most firms are unable to locate the appropriate demographics, and this restriction has the greatest impact on small enterprises. With data analytics in place, MSMEs can discover the correct segment and demographics for their product or service, resulting in immediate commercial victories.

Calculate Client Acquisition Cost

Acquiring a new client isn’t easy, and small businesses must also put their money into it. While having several digital marketing methods is beneficial, does it always provide results?

Certainly not! Understanding metrics and key performance indicators (KPIs) such as pay-per-click, cost-per-lead, and others helps organizations make the best decisions in the face of uncertainty. If the technique isn’t lucrative, it may be changed or even abandoned at the appropriate moment rather than spending a fortune on it.

Accurate Forecasting of Seasonal Demand

For businesses, seasonal demand is like a luscious cherry pie. Every company appreciates it but is unaware of its nature. What was popular last year may be entirely out of date this year. Customers’ preferences can be entirely unexpected. The savior is data analytics. The thorough insight gained from the dataset is what distinguishes a winner from the crowd.

Competitive Analysis

Understanding the market and keeping an eye on competitors is critical. It would be a goldmine to make your next business move ahead of your competition provided you are able to track what they are seeking, the markets they are chasing, and the sort of orders they are obtaining. If an organization can analyze competitive data, they can easily outperform their competition.

Developing & Offering Product Enhancement

In this intensely competitive environment, designing the product that clients require is a game changer. Even when companies have great ideas, their implementation is often poor. What’s even worse is to release a product that no one requires. Such errors negatively influence enterprises’ financial standing, and they may be disastrous for small businesses. A good in-depth grasp of consumer comprehension can impact the product design process.

Help with the Recruitment Process

Talent shortage is a huge challenge for most organizations, and more so for SMEs. That’s because they’re already working with a lean team, and if they hire the wrong talent, then they end up wasting both time and money. Large organizations can afford to make the mistake of hiring the wrong talent, but not SMEs. If they can analyze what sort of talent is available for their kind of work, it will help them hire the right people faster.

Need for a Data Science Workstation

If your organization is investing in data science for the first time, it is Ok to be worried. Even if you enroll some skilled Data analysts on your team, the job won’t be possible without proper hardware. Consult your team to get hold of your system requirements to meet your Data Science goals. Due to the terrific customer service and after-sales support, most businesses use HP Workstations PCs in India. However, as workstations can be expensive, you must ensure your investment is future-proof and scalable.

Check out the HP Z2 Tower G9 Workstation, which comes with 16 Core 12th gen Intel Core i9 CPU, NVIDIA RTX A5000 GPU, 128GB DDR4 ECC RAM and 48TB SSD storage. This is a budget segment Workstation PC that can kick start your Data Science project. In addition to the budget, always detail out the requirements to determine which Workstation PC you should invest in.

Due to a rise in hybrid work culture, Mobile workstations can be excellent for professionals. For example, check out the HP ZBook Power 39.6 cm (15.6) G9 Mobile Workstation PC, which comes with 12th Gen intel i7 CPU (14 cores, 20 threads), 16 GB DDR5 RAM, and NVIDIA Quadro T600 GPU.

So yes, Data science is the need of the hour, and you also need to invest in increasing your computation power for advanced analytics. If you don’t, your competitor will have an advantage over you.

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