Tag Archives: Digital Transformation

Top Analytics Trends 2016 for SMBs

Top Analytics Trends 2016 for SMBs

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Like last year, we bring to you top analytics trends 2016 for SMBs based on what industry stalwarts and our clients are saying.

A quick comparison with last year trends reveals that some trends continue to evolve. Topics like Deep learning, Self-service-BI, or Cognitive computing are some latest ones being discussed. Nonetheless, others are rapidly gravitating towards some common theme. One such theme is ‘Big Data Analytics’. More and more small and medium-sized businesses (SMBs in short) are going digital, embracing analytics, and leveraging their data to turn insights into higher revenues, reduced costs, and overall business growth. According to analysts, the big data analytics market is expected to reach nearly $50B by 2019.

Our Trends focus on applicability of these technologies to small and medium business (SMB) organizations. Although, technology indeed plays a vital role in running a successful business, some of these emerging technologies are not immediately relevant to SMBs. It can be helpful to develop an awareness of these technologies but very few SMBs are actually going to use say, 3D printing or AI in 2016 – and nor should they if they have no real business benefits.

This year, we have identified nine top analytics trends that are most relevant to SMBs.

 

1. More SMBs use analytics for business benefits.

Until a few years back, big data (analytics) was more hype than a reality. Google was awash with searches involving keywords centered on ‘Big Data’. However, over the last couple of years, analytics has left the hype-curve to provide real value. Today, (big data) analytics is everywhere.

Earlier, SMBs were not too savvy about maintaining the data of their customers, product-orders, and suppliers. This was largely because of the costs involved in data storage without the apparent benefit of maintaining the data. However with the data explosion through various media over the last couple of years and with the availability of custom-analytics providers, they woke to the possibility of utilizing their data for getting answers to some key questions around their businesses. As the benefits started becoming visible – in terms of exponential business growth in a few cases – SMBs started focusing on analytics and become more data-driven to improve their business results.

However, making this data meaningful and easy to understand is still a challenge for many. We think that 2016 will be the year that small-scale analytics will really take off for SMBs, as it allows them to leverage their data from disparate data sources for their business benefits.

 

2. Internet of Things (IoT) enters our daily lives.

This is what Nikola Tesla said in a 1926 interview with Colliers magazine:

Top Analytics Trends 2016 - Internet of Things globe pic

IoT world

When wireless is perfectly applied the whole earth will be converted into a huge brain, which in fact it is, all things being particles of a real and rhythmic whole… and the instruments through which we shall be able to do this will be amazingly simple compared with our present telephone. A man will be able to carry one in his vest pocket.

How it has become a reality less than a century later!

 

The Internet of Things (IoT) in its current form proliferated with the surge in low cost sensors embedded with Bluetooth wireless capability onto a small chip. And it is rapidly evolving from the realm of fascinating gizmos to real-world utility gadgets. Many leading companies such as Google, Amazon, Cisco, Dell, and TI have developed their versions of IoT products. There are already some cool IoT devices like Nest, Fitbit, and Belkin, to name just a few, that are vying for consumers’ attention in the market.

So what’s in it for SMBs?

In terms of Google trends shown in Exhibit-A, IoT today is where big data analytics was around 4-years back. Gartner forecasts that there will be 6.4 billion internet-connected things in 2016. Although the potential of IoT is huge, few SMBs consider it their ‘critical’ priority for investment at the moment. For them, it is still a nice buzzword. There is still time before every visible thing will have a sensor attached to it that will communicate with your servers in real-time. Meanwhile, SMBs are willing to watch and ride the hype-cycle.

Top Analytics Trends 2016 - IoT interest over time (Google graph)

 

3. Predictive analytics to address cybersecurity concerns.

As SMBs expand their technology footprint to run their business operations, the need to secure and protect data grows. Data security and privacy concerns continue to exist among small and large business organizations. However, many SMBs feel challenged and intimidated to deal with the rising complexity of cybersecurity breaches. Companies are normally content with the conventional approach of putting defensive mechanisms to ward off security risks. However, with technology advancements, the security breaches have also become more sophisticated and more risky wherever consumer data is involved.

While large organizations invest heavily into advanced (read: expensive) security mechanisms, SMBs do not have the luxury to do so. Nevertheless, they are now custom-developing predictive analytic models to proactively monitor log files and other user data sources to detect any threat perception or breach alerts. Clustering algorithms can help them identify anomalies in user login or other events which can be recorded on an ongoing basis. 2016 is likely to see an increase in the application of predictive analytics to deal with cybersecurity concerns.

 

4. Machine Learning algorithms foster man-machine collaboration.

We are entering the ‘smart’ era – smart people working alongside smart machines in smart cities. IDC¹ predicts that companies will spend more than $60 billion on cognitive solutions by 2025. Theoretically, machine learning algorithms based on neural network and AI have existed for a long time. However, their widespread application in everyday life is getting acceptance only now. This is made possible due to the tremendous increase in processing power that enables real-time split-second decision making.

Machine learning algorithms are currently being employed primarily in retail industry. With more people shopping across multiple channels looking for lowest prices, machine learning algorithms will become very popular in implementing dynamic pricing and devising on-the-spot offers in retail stores to retain the buyer.

For example, during this year’s holiday shopping season, leading retailers such as Amazon and Walmart were relying heavily on algorithmic pricing. Both retailers re-priced 15% of 18,000 product SKUs being tracked by a pricing intelligence solution on November 14th alone. These algorithms will be the backbone of any and every e-commerce business striving to win and retain customers.

[Example credit: Forbes]

 

5. Rising smartphone and tablet penetration continues to increase consumer mobility.

According to a comScore – Morgan Stanley research, mobile users globally have surpassed desktop users at the beginning of 2014. Rising mobile adoption, among people of all ages, impacts consumer purchasing patterns in a big way. With the increasing mobility, SMBs view mobile apps as a way to reach and engage end-users. SMB Group’s 2014 SMB Mobile Solutions Study indicates 59% of SMBs view mobile solutions and services as ‘critical’ to their business.

 

6. Hybrid cloud options still complex for SMBs.

2015 saw cloud making deep inroads into data-centers, data warehouses, centralized storages, and servers. SMB group’s market study shows that the cloud is poised to overtake on-premises deployment in the next year in areas such as collaboration, file sharing and marketing automation.

However, SMBs are largely using public cloud and staying away from private (or hybrid) cloud options because of the lack of clarity. Microsoft, Dell, and IBM have their own cloud platforms as hybrid cloud options however they do not yet seem to provide a compelling proposition for SMBs to embrace.

 

7. Omni-Channel integration or cross-device challenge?

Omni-channel is not a buzzword anymore given the availability of multiple screens every customer has. People have indicated that they love to shop across channels. So, more and more brands are going omni-channel way in a bid to woo consumers and to help them buy in their preferred channels. Brands are applying strategies like location based analytics to make relevant offers when consumers are in the vicinity of their stores. Businesses (like Macy’s or Virgin) that offer a unified omni-channel experience to their customers appear to have a competitive edge over others that cannot.

However, in a March 2015 study by Signal, 51% of marketers worldwide reported that they did not have a single view of customers, and only 6% of marketers worldwide reported they had an adequate single view of customers or prospects across all devices and touchpoints.

From our perspective, this year businesses will make this decision of whether they will play the omni-channel game and how.

 

8. Real analytics talent is (still) scarce.

According to the 2015 MIT Sloan Management Review survey² of business executives, managers and analytics professionals, 49% of respondents, who believe analytics creates competitive advantage for their organization, say that their company lacks appropriate analytics talent. While there is no dearth of analytics CVs in the market, very few of those appear to have real data science skills. In reality, companies need data scientists who possess the rounded knowledge of computer science, algorithms, math-statistics, business, and analytical skills.

Organizations that hire the less than appropriately skilled analysts end up wasting more than just money without any real benefits accrued. This is the reason more than 50% of analytically challenges organizations have stated that they outsource analytical services to external consultants or organizations, according to the survey.

Smart companies are realizing that analytical talent is critical to their success and in short supply, but more than 40 percent struggle with finding the talent they need. There seems to be a growing belief among SMBs that it is best to focus on customers to grow business leaving the necessary analysis tech work to specialists.

 

9. Visualization will be vital to SMBs application of analytics.

Data and the insights from that data are no more relegated only to the analysts. Business owners and SMB executives want to visualize their data to understand ‘what’s really going on’ in their business. And they want to do it in minimum possible time to be able to focus on the more important aspect of applying those insights for the improvement of their business. Business analytics in the SMB space is likely to stop being just a set of bar- and pie-based charts, and will be more multi-variate and intuitive. SMBs will demand more from the analysts in terms of visualization techniques that makes it easier and faster to visualize, understand, and explore data and uncover real insights from it.

 

Conclusion

This is an extremely exciting time for SMBs who can now apply customized analytics as per their specific requirements to take their business to a new level in an economical way. We believe this was not an option they previously had. It will be interesting to see how SMBs embrace business analytics to leverage the opportunity and explore unlimited possibilities.

 

References:

1 International Data Corporation

2 Ransbotham, D. Kiron and P.K. Prentice, “The Talent Dividend: Analytics talent is driving competitive advantage at data-oriented companies,”MIT Sloan Management Review, April 2015.

3 IoT image credit: wikipedia

 

You can also subscribe to our blog – Our Perspectives – to receive interesting articles and insights in email. We would love to read your perspectives and comments on that.

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Most Popular Perspectives from 2015

Most Popular Perspectives from 2015

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It’s New Year again – Happy New Year 2016!

Thanks for your overwhelming response to our insights shared with you over the last year.  We are excited to announce the most popular perspectives from 2015 published at Veravizion/Perspectives. These are our biggest stories of 2015 in case you missed them.

One of the wonderful aspects about sharing our insights is appreciating the incredible business acumen, diversity, and depth of thinking of our readers. Our articles, which we call our perspectives, are written after carrying out thorough research on every topic. Our belief is that these articles will push you into thinking about how the (business) world is transforming before our eyes, and how some long-standing business principles may not necessarily hold true today.

As the year is over, take a quick glance at how the world is getting used to being data-driven. Enjoy these stories and let us know about your top content in the comments. In the next one, we will see how the analytics world is likely to unfold in 2016.

Most Popular Perspectives from 2015

Story# 13 Lessons Every Executive Must Learn From Wimbledon Centre Court For Business Success

Most Popular perspectives from 2015 - Lessons from Wimbledon

Sports has always had many lessons to share for business success; and everyone and their grandpa knows this. Nevertheless, its relevance has never been as great as it is in today’s analytics age.

This article illustrates this phenomenon by drawing lessons for business success from 2015 Wimbledon final between Djokovich and Federer.

 

 

Story# 2Data Science: The Next Frontier For Business Competitiveness

Most Popular Perspectives from 2015

This article on Data Science by Veravizion was originally published as the cover story in the July-2015 edition of Computer Society of India – Communications magazine. You can also read this article at its source at http://www.csi-india.org (Link path: http://www.csi-india.org->PUBLICATIONS->CSI Communications->CSIC 2015->CSIC 2015(July)).“

 

 

Story# 3The Digital Transformation Imperative: Why Businesses Must Have Online Presence – An INFOGRAPHIC

Most Popular perspectives from 2015

INFOGRAPHIC: click to enlarge

The business world is fast going online, so what’s the big deal? The big deal is in grasping the fact that it may replace your business if you do not become a part of the change, soon.

The infographic in this article gives a glimpse of how fast the consumer purchasing trends are changing from physical to digital, and what you can do about it.

 

 

Story# 4How Do You Achieve Strategic Transformation For Enduring Growth Of Your Company? – Part-I

Most Popular perspectives from 2015

Historically, leaders of cities, communities, and organizations have been embracing strategic initiatives to ensure long term sustenance and growth of their respective ecosystems. Many a times, these initiatives were ‘intentionally’ directed at bringing about long term transformation of their systems. But do such initiatives specifically aimed at strategic transformation always result in the lasting growth of the entity? We discuss it in this article.

 

Story# 5What Does Digital Maturity Really Mean?

Most Popular perspectives from 2015

This is the last article in the Digital Business series in which we illustrate how small and medium businesses can transform themselves from mere-physical to also-digital, and be more competitive. We do this by taking a visual example of a fictitious light business of our lovable businessman Bobstick.

 

 

 

We hope you enjoy these stories!

 

 

Strategic transformation photo credit: businessinsider

You can also subscribe to our blog – Our Perspectives – to receive interesting articles and insights in email. We would love to read your perspectives and comments on that.

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What Does Digital Maturity Really Mean

What Does Digital Maturity Really Mean?

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When I went to medical school, the term 'digital' applied only to rectal exams.” - Dr. Eric Topol

Well, things have certainly changed since! The previous article – an infographic – discussed about the urgent need for businesses to achieve digital maturity in order to survive and thrive. But exactly what does digital maturity really mean for a small and medium business organization that thus far has focused primarily on serving local customers?

You might be thinking whether this question – what does digital maturity really mean – is really relevant in today’s digital age. Our implicit hypothesis is that most businesses, especially those in the developed countries, are already digital by now, and so they must know what digital maturity really means.

Well, evidence shows that the above assumption is far from true.

Consider these stats from the UK Business Digital Index 2015 report which states that almost a quarter of UK businesses still lack basic digital skills:

  • Almost 35% of around 5.2 million organisations in the UK have a very low level of digital understanding and capability – they do not make use of the internet for their business and do not have any web or social media presence
  • Barely 53% of the businesses have their own website
  • Only 46% organizations have a medium level of digital maturity – i.e. they use basic e-commerce tools, perform some banking transactions online, and have basic social media presence.

Therefore our question is extremely relevant even today!

 

So what does digital maturity really mean?

To understand this, let us quickly recapitulate why businesses want (or need) to go online in the first place.

Businesses go online for a variety of reasons (read: benefits) such as expanding markets to grow business, deepening engagement with target customers, broadening product and service offerings, leveraging multi-channel capabilities, and in general staying competitive amidst the changing global business landscape.

All these reasons can be summed-up in one simple line: Business organizations, like yours, are going digital because your customers are increasingly seeing, hearing, feeling, searching, interacting, sharing, and buying stuff online.

The above sentence encapsulates the entire online activity happening today in the business world. [tweet this]

In short, your market has gone online and it would serve you better if you do, too.

So what takes you there?

Here are the 5-stages on your journey to achieving digital maturity for your business:

  1. Digital Apathy
  2. Digital Literacy
  3. Digital Transactions
  4. Digital Engagement
  5. Digital Maturity

 

Let us look at each one a bit more closely with an illustrative pictorial example for each:

 

  1. Digital Apathy:

This is the initial (or default) stage of any organization typically born before internet. This company mostly sells their products mainly to customers in its neighbourhood through its physical stores. There is a passive resistance (or indifference at best) in accepting digital strategy due to inertia mixed with scepticism towards going digital. There is absolutely no online or any beyond-the-shop interaction with the customers. The business owner is unmindful about going out of business in this increasingly digital world, and apparently suffers from ‘it won’t happen to me’ syndrome.

 

What Does Digital Maturity Really Mean?

 

  1. Digital Literacy:

There is (almost) a reluctant acceptance to the changing business scenario. The business has a (mostly passive) website that displays the products and services on offer but hardly anything beyond that. On the positive side, customers now have a gateway to your offerings and can find information about your products and services. There is a new one-way channel to update customers about new product and service offerings – a good beginning to say the least.

What Does Digital Maturity Really Mean?

 

  1. Digital Transactions:

The business finally wakes up to enormous possibilities the e-commerce world offers and introduces online transactions to sell its products online. There is a conscious effort to implement basic customer analytics to understand buying customer profile to grow revenues. The business also tends to apply e-commerce intelligence to provide leads reports to sales teams to grow further. There is an emphasis on generating and distributing user-oriented content in order to draw target customers to purchase online. Businesses may introduce their own inventory management and service fulfilment back offices to excel in their customer service to build customer loyalty. The business starts learning about rule based prioritization as they explore the benefits of implementing analytics for revenue and profitability growth.

What Does Digital Maturity Really Mean?

 

  1. Digital Engagement:

When a business establishes itself on the various social media platforms, there is a step change in the way it perceives customer interaction, customer engagement, and marketing. Old channels and methods of one-way communication are renounced in favour of digital channels which enable listening to customers’ feedback first-hand and responding in their preferred channel to facilitate effective customer engagement. One important aspect of increasing engagement is to create product touch-points across all channels vis. physical, desktop, mobile, kiosks, catalogue, direct mail, and social media. The order in these cross-channel chaos is set by the use of marketing analytics which helps to mine hidden consumer insights, understand customer purchasing journeys, optimize advertising spend, and engage with prospective customers at early st(age) to nurture them into loyal followers.

 

What Does Digital Maturity Really Mean?

 

 

  1. Digital Maturity

The focus at this stage is on innovating the existing business model and on integrating the overall strategy. Personalization is the key here! Customers have 24x7x365 access to the products and services across different digital channels but still have an Omni-channel experience. For example, a customer becomes aware of your product in one channel, say Pinterest, actively searches for it online on his office desktop, physically touches and considers buying it in-store, ends-up purchasing the stuff on their mobile, and shares his new purchase with Facebook friends. Matured businesses (like P&G and Amazon) have institutionalized integrated use of analytics services to study individual consumer behaviour through comprehensive understanding of customer interests, affinities, and actions. They are drawing intelligence trends to predict customers’ future wants and needs before customers themselves realize it. Considering the enormity of data getting generated every day, matured businesses are implementing advanced algorithms to auto-analyse data at its source for more real-time application.

 

What Does Digital Maturity Really Mean?

 

 

Achieving digital maturity is not the end; rather a beginning of the implementation of a truly personalized digital strategy for each consumer. Businesses embracing digital strategy will eventually lead the way.

We are in the throes of a transition where every publication has to think of their digital strategy” - Bill Gates

 

 

Cover photo credit: yourgenome.org

 

If you liked this article then you may also like to read The Digital Transformation Imperative: Why Businesses Must Have Online Presence – AN INFOGRAPHIC.

You can also subscribe to our blog – Our Perspectives – to receive interesting articles and tips in email. We would love to read your perspectives and comments on that.

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The Digital Transformation Imperative

The Digital Transformation Imperative: Why Businesses Must Have Online Presence – An INFOGRAPHIC

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“81% of US consumers turn to search engines to find information on products, services, and businesses before making a purchase,” according to GE Capital Retail Bank’s second annual Major Purchase Shopper Study. The digital transformation imperative study performed by Veravizion indicates that this observation is not much different in other parts of the world.

Less than 20 years back, Google (or an online search engine in its current form) did not exist. Most commercial transactions took place at a brick-and-mortar store. People booked long distance train tickets standing in a long queue at the ticket counter, bought airline tickets from travel agents, rented DVDs in video stores, read about new fashion in a print magazine, and purchased music CDs in record stores.

Today, 70% of all the travel bookings and hotel reservations take place online.

Music CD shops selling LPs, Vinyl records, and CDs have ceased to exist.

DVD stores have virtually disappeared from the streets.

Paper magazines and print advertisements have given way to their online cousins.

 

‘In the present day, if your customer cannot find your business on Google, you probably don’t exist for them.’ In a relatively short span of time, this has come to be one of glaring truths that business leaders must accept. Today’s consumer seems to have too many things to do, and appears to have become impatient because of limited time at hand. She wants to get everything done at the snap of a finger.

The digital world allows them this convenience of having (almost) everything in just one-click or touch. In fact, customers are adapting to this technology-driven shopping so well that they are touching every screen – even ‘dumb terminals’ – looking for an interactive touch-screen experience. Recent research on e-commerce points to a growing trend of digitalization of businesses and even non-profit social organizations.

Many industries like flowers and footwear, where customers’ need to touch and feel the product was considered important, now have above average online penetration. The grocery and general merchandise retailer Tesco is a case in point. It was one of the chains that saw an increasing role of technology in day-to-day household shopping and launched their online operations; it is now world’s second-largest retailer by revenues. A few industries like online grocery and pet foods (remember Webvan.com and Pets.com?) had a false start because of issues with their online business models, but are now being resurrected by the likes of Amazon and FreshDirect. Slowly but surely, every industry is joining the digital bandwagon.

Consumers on their part are enjoying the omni-channel shopping experience. Omni-channel purchase means a customer buying across multiple channels – online through mobile or desktop, call centre, catalogue, direct mail, kiosks, physical stores, and social media – and having a seamless shopping experience. So a customer may discover a great product offer while browsing Facebook during breakfast, search more information about it online via desktop after reaching office, ring a few call-centres to compare prices during lunch, check the product out at a nearby physical shop on the way back home, and finally purchase it online from their home using a smartphone. Once the product arrives, they may update their friends on social media posting pictures of their new purchase. The entire shopping experience becomes conveniently embedded in their routine and is fun.

Thus, internet is playing a key role in how businesses are run today. Nevertheless, it still has some way to go. An e-commerce foundation report shows that a disproportionately high percentage of businesses, even in developed countries with high internet penetration, are yet to go digital. For example, almost one in four businesses in UK has none to low digital maturity, while the ratio is reversed in some of the developing countries in Asia-Pacific, where the rate of digital transformation is much higher.

The attached infographic presents a quick glimpse of how business landscape is rapidly changing. It implores, with substantial evidence, why business (and social) organizations must have an online presence to survive and thrive in this third millennium.

What has been your experience of going digital? We would love to hear.

The Digital Transformation Imperative

The digital transformation imperative

Click above infographic for enlarged view in new window

 

 

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References:

 

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You can also subscribe to our blog – Our Perspectives – to receive interesting articles and valuable business insights in e-mail. We would love to read your perspectives and comments on that.

 

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