One of the most challenging aspects of running a business is managing the large volume of data it encounters on a day to day basis. Properly managing this information can provide some potentially useful insights that may ultimately increase your business' capital. However, due to the large amount of data, those that contain invaluable knowledge are often buried underneath all the irrelevant information. Managing data may seem like a waste of time and effort when it produces no result. But once you learn how to efficiently manage big data, you'll be able to make better decisions and plan better strategies for the betterment of your small business. Here's how you can increase the capital of your small business by managing big data.
Hire Big Data Talent
The need for employees that are skilled in data analytics is dramatically increasing especially now that the world is mostly relying on technology to function. Thus, there is a shortage of employees that are exceptionally skilled in data analysis. Even for small businesses, one or two analytics expert is rarely enough. Building a team of highly skilled big data analytics experts, on the other hand, will make it easier for you to identify and address the current problems in your small business and develop strategies that will help you stay ahead of competitors. In fact, a study by McKinsey showed that 15 percent of the increase in profits from big data analytics is linked to hiring experts in data and analytics. Keep in mind though that a team or an entire department devoted to data analysis will still be limited to the human scale.
Find the Problem
Because of the large volume of both structured and unstructured information, there is often too much noise in big data, making it hard to find valuable information on time. Thus, limiting the scope of data analysis is one effective way to get the benefits out of big data. Identify the problems in your business and only use the metrics that can lead directly to a boost in productivity and efficiency. This way, data managers will be able to distinguish useful information from irrelevant ones in a timelier manner.
Make Use Of Technology
Analyzing large amounts of information is ages old but big data is too difficult to process using traditional database and software techniques for a couple of reasons. First, businesses acquire a large amount of data from a variety of sources everyday, ranging from business transactions to social media. Second, the data comes in many types of formats including the structured numeric data that is characteristic of traditional databases and the unstructured financial transactions, text documents, email and more. Finally, the data comes in tremendous speed, making it difficult to deal with using traditional means. The most effective way to catch up with big data is by using software that specializes in data analytics such as Hadoop. Use program data analytics for Hadoop to optimize data management, handle simultaneous tasks, and detect and eliminate recurring problems, ultimately increasing profit.
Invest Early
The earlier you invest on big data analysis, the greater will your profits be. Those who start out their business with proper data management encounter less errors in their business process and are thus, more capable of making strategic decisions. Also, businesses who invest in big data analysis sooner have the advantage of learning through trial and error early on. While their competitors are just starting out in big data analysis, they already know which technology to use and incorporate into their workflow.
Investing on skills and technologies and staying on top of new developments can help you stay ahead of competitors. Taking advantage of big data analysis can help turn seemingly useless information into something substantial which you can then use to increase the capital for your small business.