Many industry pundits talk about the need for enterprise-level firms to harness their data so they can view their products and customers in a whole new way. For entrepreneurs, data no longer requires massive IT budgets and data scientists. And we aren’t talking just about “Big Data,” but any type of data that a business has and is able to utilize to some end.
The rise of cost-effective data analytics provides small businesses a way to compete with — and even surpass — entrenched competitors. Customers expect a lot. They want the right product or service to fit their needs, they want it quickly, and want it to work well. Data plays into satisfying all of those goals as it helps to streamline processes, produces relevant customer recommendations, and helps to continually refine and improve the company’s products.
Small businesses can follow the lead of a company such as Nest which is transforming the normally staid thermostat and smoke alarm business. The core of Nest is data, because the product pulls user preferences, getting “smarter” over time for maximum efficiency.