Data Economy for SMEs: Option or Necessity?
Snippet: The Malaysian government has been encouraging SMEs to adapt to the growing data economy. But why is it so important for SMEs to utilize data?
The Internet has revolutionized the way that we get information, the way we communicate, the way we work, and the way we live today. What started as a simple, resilient information-sharing network has grown into the core backbone of the global economy. Unimaginable amounts of data travel back and forth between users and systems every second, to inform and update technology that everyone uses. It is no wonder that the data has reached a point where a value is now applied to it.
How does data become valuable?
Using the example of retail sales data, companies can track sales patterns that can help them make their production processes more efficient, personalize user experience, and boost the effectiveness of their marketing efforts.
This leads to greater profits, reduces wastage, and improves the overall business strategy of the company. The understanding of a company’s data gives them the ability to make better and informed decisions.
Why SMEs need to adapt to the growing data economy
While small and medium-sized enterprises (SMEs) makeup 98.5% of businesses in Malaysia and employ 48.4% of the population, their ability to access and leverage data is very limited. As the “backbone of the Malaysian economy”, it is crucial that SMEs have the ability to collect and utilize data effectively.
Through data collection, SMEs will be able to track customer behavior, figure out the “hero” product, identify where to increase or decrease spending, and ultimately make better decisions about where to take their company.
This will enable them to increase their reach, improve their stock-keeping efficiency, and become better prepared for future uncertainties in the business environment — which is especially important during the COVID-19 pandemic.
The Malaysian economy, especially the retail industry, took a massive hit during the pandemic. To speed up the economic recovery, the Malaysian government has encouraged SMEs to adapt to the growing data economy by providing grants like the SME Digitalisation Grant and the Smart Automation Grant. These grants aim to connect companies with the resources they need to bring them into the data game and help restore the economy.
How SMEs can reap the benefits from the data economy
Having access and understanding how to leverage data can make all the difference when it comes to developing strategies to drive sales as the economy begins to recover. Aside from that, data is a “tradable commodity” that is highly sought after by manufacturers, market researchers, and even the government.
Most SMEs have masses of data that are not being utilized. So, if they want to gain benefit from that data, they have to:
- Do an audit on the data generated by their company
- Learn how to organize their data
- Learn how to transform it into insightful and easy-to-understand reports
- Decide how data can be utilized to improve their decision-making, stock-keeping, and boosting the company’s bottom line
Data is the future of business and the economy. So if you want your company to thrive, it’s time for you to join the data game — and SYCARDA can definitely help you with that.
SYCARDA is a data analytics software that can collect a range of data at the point of sale (POS) and create easy-to-understand reports. With this data, you can easily identify certain trends and create a more accurate forecast, allowing you to boost your bottom line profits.
We are currently present in more than 800 outlets across various business sectors and have helped hundreds of business owners make better data-driven decisions. Now, we’re looking to help you do the same.
Contact us to get a FREE demo of SYCARDA.