In the first post in this series, Seeing the Light: How SMBs are Using Data and Insights to Get Ahead, I shared the motivations that prompted three SMBs (BGF Industries, Oberweis Dairy and Twiddy & Company) to replace spreadsheets and intuition with a more sophisticated, analytics-driven approach.
But what factors do you need to assess in order to select an analytics solution that will work best for your business? In this post, I examine the factors that these decision-makers view as make or break considerations to guide the analytics selection process and ultimately, drive successful outcomes.
As Albert Einstein, said, “The important thing is not to stop questioning.” After you’ve determined the business requirements you need to solve, the next step is to identify the specific questions you need to answer to solve these requirements. For instance:
Most SMBs start with wanting to analyze internal company data. But odds are that corporate data is in different 'silos,' such as an internal financials application and a cloud-based HR or CRM solution. Data silos are usually inconsistent, expensive to support and a source of contention in companies. Bringing siloed data together into an integrated data store is the foundation to build a 'single version of the truth' to run reports, build dashboards, and create visual or mobile user interfaces.
BGF was fortunate. It had already built a data warehouse for its lab testing data when it decided it needed a more powerful analytics solution. But Twiddy and Oberweis faced a dilemma more common to SMBs. For example, “Our Ice Cream and Dairy Stores operate in a completely different IT environment than our Home Delivery and Wholesale businesses,” explained Bedford. “For timely, accurate reporting and analysis of cross-channel purchase behavior, we needed to start by bringing all of our consumer and inventory data together into a single data warehouse.”
Look for solution providers who can help consolidate and standardize data from different sources and formats to build an integrated, rationalized data store. This foundation will enable you to derive deeper insights, better metrics and the confidence you want from your data.
Big data isn’t only applicable to large businesses. In fact, the "big" in big data is relative—relative to the amount of information that your organization needs to sift through to find the insights you need, when you need them.
BGF was storing over 5 million lab testing data points in a data warehouse. “Many of the solutions we looked at couldn’t handle the data volume, they would choke after a couple of million data points. We needed a solution to power through this with the speed we needed,” according to Hull.
Consider both current data volumes and what’s coming down the pike. Oberweis’ Bedford notes, “We wanted to start with market analysis, but knew that down the road that we would want also improve inventory management and gain more predictive inventory control, which would bring more data into the picture.”
It’s a safe bet that the volume and variety of digitized data relevant to your business will continue to rise exponentially. You may need to bring in new, unstructured data from company emails, from external sources such as social media, or machine generated data from processes that you automate.
Select a solution that will be ready when you need it to crunch through more data, from more places, more quickly. Analytics solutions that take advantage of new technologies, such as Hadoop and MapReduce, make it possible to run analyses that used to take days or weeks in minutes, and to weave new, external data sources into your analysis as required.
To have value, data needs to be accessible, consumable and actionable. People must be able to interact with it, and get the information they need, when and how they need it, to perform their jobs most efficiently.
Consumability was top of mind for Twiddy & Co. “We wanted something that would not only help our executive team to make decisions, but also shape information that we could disseminate to front line managers and the field,” notes Twiddy. Executives needed planning and forecasting capabilities to help maximize occupancy for almost 1000 properties, and manage service costs among 1100 providers. “But we also needed to bring together information from different sources into one simple document for our cleaning crews who clean and inspect the homes. Our data challenges were often to make our complicated data systems clear, understandable, and most importantly actionable.”
BGF’s Hull required “a daily report of issues, divided by market segment, that segment managers could pull up and start taking actions on immediately.” BGF also wanted to augment control charts with a commentary field to capture knowledge about how to resolve issues. “One of my mentors recently retired with 52 years of service. When someone like that logs something, you want to keep it and pass that knowledge on in case the issue comes up again.”
Get clarity around who needs to use the data and how. Is it executives, front line managers, people in the field—or all of the above? Business users may need visualization capabilities to make it easier to explore large amounts of data. Executives might want mobile solutions so that they have information at their fingertips at the airport. Get broad input from stakeholders upfront to deliver information in the most actionable format.
Like most SMBs, these companies had small IT staffs, ranging from 2 to 4 full-time people. They had varying degrees of analytics expertise. Oberweis’ Bruce Bedford is a PhD and has an analytics background. BGF’s Hull had experience with desktop analytics, but had to juggle his day job as Corporate Quality Assurance Manager while implementing a server-based solution. And Clark Twiddy had to help move the company off spreadsheets while fulfilling his duties as Director of Operations.
If you lack IT staff and/or in-house analytics expertise, select an experienced solution provider who can fill in the gaps with consulting, implementation, training and support services. Since analytics is a major investment for most companies, and your requirements will evolve over time, look for a provider that will really listen to what you are trying to do, work with you to overcome internal challenges and constraints, and provide a solution that will grow with your business. “Don’t be over-confident about simply buying a solution… in hindsight, we should have purchased a training plan and initial setup consultant upfront. It would have saved a lot of time.”
With all the hype surrounding analytics today, it’s easy to get derailed from your objectives by buzzwords and the next new feature. But you can stay on track if you remember that the end goal of all metrics, reports, dashboards, alerts or any other features that an analytics solution provides is to answer your business-critical questions.
Evaluating key questions at the front of the solution assessment cycle proved critical to enabling these SMBs to choose the analytics solutions and providers that would be the best fit for their companies.
If you take time upfront to lay the groundwork with a thorough internal assessment, you will dramatically increase the odds of selecting an analytics solution and solutions provider that will help you get the insights you need to grow the business and stay ahead of the competition.
In the third and final post of this series, I’ll look at how careful planning paid off for these three SMBs, and how they are using analytics to help their companies grow.
This is the second of a three-part blog series by SMB Group sponsored by SAS that examines why and how SMBs are moving from spreadsheets and intuition to a data-driven approach to grow their businesses.
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Published by: electronicdawn Ltd.