It’s not what you know. It’s what you do with what you know. That’s something companies worldwide will be learning, for better or worse in the coming year when it comes to big data. Big Data and analytics techniques may have received a lot of attention in recent years, but they still have a very low adoption rate among SMEs (Small and Medium Enterprises). Is it true that these developments have little practical relevance to most small businesses? Or are small businesses missing out on real possibilities to improve their performance?

Small businesses are often described as the “backbone” or “engine” of our economy. They’re also a key market for our profession; the majority of small businesses take the services of professionals and many regard their chartered accountant as their most trusted business adviser. So we play a huge role in the growth and success of SMEs and in helping them to build their resilience and durability.

So Do SMEs really have ‘big data’? And is ‘big data’ a useful way to engage with SMEs? While the term has a wider meaning and can attract attention, it can also switch a lot of businesses off as they feel that it isn’t relevant to them.

So Where Does The Challenge Lies? – The Integration Challenge

One of the biggest practical challenges for most SMEs are poor integration systems. Some of them are:

• Integration of Different Software: Despite small IT environments, SMEs buy different point solutions – such as different software for finance, different software for CRM (Customer Relationship Management) etc. This makes integration and consolidation of data difficult.
• Lack of Data Standards (Formats): Similarly, the lack of clear data standards in many industries leads to many different data formats which makes the data useless. This means that significant amounts of work is often required to clean-up data before it can be used for more sophisticated analysis.

Focusing only on analytic skills and knowledge therefore misses the need for getting the resources in right shape, quantity and quality. Without this, SMEs will never be able to maximise the value of their data.

So How To Go About It?

If you’re worried that your business may have missed the big data boat, you are on the right track. According to a survey, a majority of today’s businesses are “nowhere close” to recognizing the value, the analytics can bring. The reasons are all-too familiar: Lack of vision, lack of communication, lack of an actual plan. The good news: you can do something about it. Below are just a few things to keep in mind as you assemble or re-assemble the strategic big data plan.

    Data Clean-up: First, you could end-up with dirty data, which is worthless when it comes to making good, solid business decisions. Second, you could amass tons of amazing data insights that are never utilized by your executive teams. So, train your team for data clean-up to ensure that data collection is a success because collecting meaningful data is as important as its analysis.

Data Purity: Many companies don’t even know what types of data they have or whether that data is accurate or not.  If nothing else, your data needs to be pure. That means someone needs to be accountable for keeping it that way.

Data CEO: One of the biggest mistakes companies make is not having a system in place to support their analytics efforts. Who is managing it? Reporting on it? Gathering the information? Inputting the data? How to do it? How often to report it? And what about post-collection? Who analyzes the information, and how? If you haven’t outlined these processes, your data will never pay. Getting those systems in place on front end is very important before your information gathering even starts.

Establishing Clear and Simple Data Goals: If you don’t know what you’re trying to find, you’ll never find it. Make time to answer questions like: How will we measure success, effectiveness, and value? And even more importantly, what will we do with the information when we find it? Keep your goals simple, at least initially.

The amount of information flowing our way at any given moment can be overwhelming. In fact, in 2015, IBM noted the world creates 2.5 quintillion bytes of data every single day. Even more startling: at the time, the company estimated 90 percent of the world’s data had been created in the last two years alone. Imagine what we’re producing now! To help, try to avoid complex analytical goals. Start slow, and learn to trust your data through clean, clear results before taking on overly-complicated initiatives.

So Are You Ready To Embrace The Change?

When used effectively, analytics do far more than validate a company’s path to success. They can offer a new pathway to successful change. If you aren’t open to using them to their fullest, you’ll be compelled to sit out of the game.

Analytics have the power to disrupt nearly every part of today’s economy, changing everything from how we run our businesses to the type of businesses we run. Big data is here to stay. Embracing its potential is necessary as it could lead your company to unimaginable levels of success.

This can also help to drive the cultural change that encourages decisions based on data rather than the gut instinct of managers or owners. Participants suggested that this shift requires the leadership of a numerate CEO who is interested in change, and connecting with like-minded people, who can support this process.

Many businesses struggle to define how data can be used to drive business growth or improve management of operations and risks. Small businesses can seem to have advantages here. Their size and agility means they could be well-placed to adopt new practices or change their approach quickly. However, this process requires time and space to think about strategy and future planning. This presents particular difficulty for smaller businesses, as they are often heavily focused on day-to-day operations and don’t usually have the time to focus on these questions.

Big Data is getting really big and opening-up plethora of opportunities for professional and empowering them by presenting fantastic opportunities to exhibit their analytical skills in a powerful way.