Why should SMEs think more about data?

April 8th, 2021 – Much has been said about the fourth industrial revolution and all the technologies that emanate from it, such as: artificial intelligence , the internet of things , the automation of processes through robotics, big data , among many others. plus.

But at the time of landing these technologies to Small and Medium Enterprises ( SMEs ), the process becomes complicated, so many companies prefer to put these technologies aside without seeing the great benefits they can offer them.

Let’s talk about data science. Data science as many data scientists describe it is actually quite simple, without being trivial. For us it is the “art” of combining, calculating and reporting knowledge from different sources and data inputs.

Now let’s look at the example where a business has a lot of data, and data science is the little magic in the middle that can help bring all of this information together to enable you to make smarter business decisions and make the most of all of your available resources.

Data science is more than a little magic, it is a very powerful tool that turns out to be extremely valuable for companies of all shapes and sizes, for the simple fact that it generates a competitive advantage over others.

Businesses in all industries can benefit from data in many ways, with proper analytics that allows you to stand out from your competition. Of the best known examples are in ecommerce companies, which use the data to carefully evaluate the browsing behavior of their users, to better understand buyers, their habits and needs.

Also, these practices can be used to detect potential errors before they occur, or to prevent fraud, particularly in the financial sector. Therefore, by making good use of this information (data), companies can maximize their profits.

Why implement data science in SMEs?. Before entering into the importance of the relationship that SMEs should have with their data, a recount should be made of the importance that they have, as companies, in the social and economic fabric of the Latin American region.

In the Latin American region, according to ECLAC, these represent close to 99% of all companies and employ around 67% of all workers in the region (ECLAC, 2019). But more specifically, in Mexico MSMEs represent 99.08% of total companies in the country and for every 100 pesos of census added value, MSMEs contribute 45.3 pesos according to INEGI figures (INEGI, 2020). This means that they play a fundamental role in raising the potential for recovery and economic growth in the region.

In turn, a study by the Massachusetts Institute of Technology (MIT) reveals that companies that make decisions based on data are, on average, 5 percent more productive and 6 percent more profitable than their competitors.

More…https://www.entrepreneur.com/article/368938

Written by Entrepreneur
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