Is your small business ready for the data economy?
WE now live in a world where everything computes. Coffee machines automatically brew a fresh cup just before your morning alarm goes off.
Watches almost measure more health stats than your doctor. Even formerly mundane objects like the simple toothbrush are now connected and measure where you brush (or where you don't).
Digital technology has become so ubiquitous that the generation after the Millennials is known as the iGeneration, as a wink and nod to Apple's iPod and iPhone.
And this digitisation of our lives is not limited to our homes, but also to the workplace. Data is giving rise to an entirely new economy that is poised to disrupt all industries. Data is the new currency - and no longer the exclusive domain of tech companies or IT departments. It has become a business driver in a just about every industry and line of business.
Let's look at Netflix, for example. The management of the video streaming service gave its hit show, House of Cards, the green light based on cold hard data statistics.
According to GigaOm, Netflix looks at 30 million 'plays' a day, including when you pause, rewind and fast forward, as well as four million user ratings, three million searches, geolocation data, viewing times, device information, and social media feedback. With this level of customer insight, Netflix has the confidence that it would find an audience for a show like House of Cards.
Unsurprisingly, new data-related job titles like Chief Data Officer, Chief Digital Officer or Data Scientist have sprung up like mushrooms - demand for the latter alone will soar 28 per cent by 2020.
It makes sense for companies to leverage data, but that's easier said than done. Getting an accurate view of the business is challenging. Information is often stored across multiple, disparate systems and manually based data management processes are time-consuming and error-prone. From the executive level to the front lines, effective decision-making is compromised without reliable, timely data.
Large enterprises have the budgets to simply buy the skills and resources to create a single version of truth encompassing all their data. But what about other small and medium enterprises (SMEs)? Let's not forget: Last year, SMEs made up 99 per cent of all businesses in Singapore, contributing 65 per cent of jobs and 47 per cent of the country's nominal GDP. That's huge.
Digital technology and its challenges
Most SMEs believe digital technology can drive growth, but many also say they face challenges in implementing it, specifically when it comes to resources and skills.
Luckily, the Singapore government has recognised this struggle and committed more than S$80 million to help SMEs to go digital and adapt to a world where tech is increasingly disrupting businesses.
However, SMEs shouldn't solely rely on outside help. They also need to drive this change from within. And here are five simple ways to get started:
SunMoon Food Company Limited (SunMoon) is a case in point. The Singapore-based global distributor of fruit and food products previously relied on emails to correspond with its suppliers and customers, which made it extremely difficult to take stock and track orders. After modernising its operations with NetSuite OneWorld, SunMoon has a more central view of its business data and can easily create quotes, purchase orders and invoices, increasing productivity and growth.
Simple data insights can have a great, positive impact on any SME - from quantifying business performance to understanding current and emerging market trends, and building a closer relationship with the customer. Now it's your turn to transform your business with data.
