Did you know that there are more than 30 million small and medium businesses in the U.S., accounting for 99.9% of all U.S. businesses? What’s even more interesting is that these numbers are continuously growing with every passing year. Despite all this, 20% of businesses fail in their first year, 30% in their second year, and 50% after their fifth year.
That’s unfortunate but true. So, the key question is…
Why Most Small and Medium Businesses Fail?
There are several reasons why SMEs (small and medium enterprises) fail. These reasons mainly include:
- Having no business plan or poor planning
- Failing to understand customer behaviors
- Mismanagement of inventory
- Lack of funding
- Insufficient data
In addition to these reasons, improper data analysis is one of the biggest reasons behind the failing numbers of SMEs. Since most businesses operate and generate a large volume of information, data analytics play a crucial role in determining their success in the ever-vying world.
According to The Straits Times, around 70% of SMEs have yet to adopt data analytics. What’s even more surprising is that many of these enterprises were only familiar with spreadsheets and databases, which suggests a lack of understanding of advanced data analytics. However, the positive side of the report is that these SMEs were ready to learn about data analytics solutions.
Automation is the Solution for Small and Medium Businesses
Automating data analytics paves the path to increased revenue and decreased costs. The results it delivers are just worth the investment. To give a better understanding, below are the top benefits automated data analysis offers to SMEs.
- Fast and Economical
Automation can help you increase the speed of data analytics. As a data scientist, you can perform analytics more quickly. This is because automated analysis requires little or no human input, meaning computers can efficiently complete difficult and time-consuming tasks. That also means that you don’t have to pay for rota tasks.
2. Improved Processes and Systems
Since you can automate tasks that don’t need a high level of human ingenuity, you can focus on surfacing new insights. This will further help them make data-driven decisions and manage complex processes. On top of that, automating analytics will allow you to minimize human errors and build future-proof processes and systems.
3. Increased Productivity
Since data analytics save time and money, improve processes and systems, they can focus on other allocated tasks. Data scientists and engineers can devote themselves to activities with higher added value, without being exhausted. For instance, if you need to drive the machine to ensure the smooth running of the project, automation can help you with a better redistribution of tasks between human and machine.
4. Refined Customer Experience
Having access to automation tools that use artificial intelligence helps businesses make better decisions and produce more informed results. By knowing what people want and how they think, you can drive their decisions and make them feel good when they interact with your brand. Based on automated data analytics, you can deliver a personalized customer experience and start engaging with your clients at the right time and through a proper communication channel.
5. Better Marketing and Promotional Efforts
Automating data analytics gives you insights into what your consumers want and how to cater to their needs, which further allows you to track them down and make promotional offers. With a better understanding of data analytics, SMEs can get a better understanding of the market, clients, and competitors. They can easily make predictions, follow the latest trends, and leverage data-centric marketing efforts.
When Should You Automate Data Analytics?
Now that you know the benefits of automating data analytics, it’s time to understand when and where to use automation. As a simple rule of thumb, automate those tasks that are rule-based and performed very often. These tasks majorly include:
- Creating dashboards and custom reports
- Making the same KPI dashboards
- Simplifying data maintenance tasks
- Modifying and tuning data warehouses
- Integrating new data sources
- Migrating data from legacy systems
Although several aspects of the data analysis can benefit from automation, human intelligence is still irreplaceable. When it comes to asking questions, validating stats, and translating numbers to actionable insights, you shouldn’t rely on automation.
Data analytics help you gain all the needed insights into your small and medium business. And with automation, your journey becomes better and smoother. It is the best approach towards improved data science, reduced costs, and efficient business planning. What do you think?