In India, MSMEs are one of the most influential contributors to the country’s economy. Since the Indian economy relies heavily on labor and MSMEs use labor-intensive production methods, eliminating unemployment has substantially contributed to economic growth. Therefore, MSMEs have also considerably impacted eradicating poverty through the use of the internet.
According to the Ministry of Micro, Small & Medium Enterprises, India has more than 7.9 million micro, small and medium enterprises (MSMEs), as of 27 March, 2022. And more businesses are leveraging technology to increase profitability and productivity to boost their operations. The good news is that MSMEs also leverage technological advancements to improve customer retention and run their business more efficiently. MSME, like other businesses, is also trying to integrate the concept of technology into its operations, similar to other enterprises.
Using the right data analysis tools in conjunction with the right insights can give your company a competitive edge in the market. A lot of the time, data insights aren’t just for big companies; they are also helpful for small and medium companies. Furthermore, by leveraging the insights provided by data, small and medium-sized businesses can become more competitive by getting the most out of the data they possess.
In the context of business information analysis, data insights are tools, strategies, and practices for collecting, analyzing, integrating, and presenting data to help companies make better business decisions. Through insight, MSMEs can reduce risk by understanding expected demand cycles, customer feedback, and market gaps. These firms can provide insight into small and medium-sized businesses that can help them make better decisions and improve efficiency.
It is no secret that many small and medium-sized businesses are budget-conscious, which means they cannot afford to make mistakes or purchase expensive items.
Before we proceed, one of the most important things that we must understand is what the term Data insight entails.
Data Insights: what is it?
An organization’s data insight involves collecting, storing, accessing, and maintaining information about itself. With data insight, you’ll be able to see everything from operations to commercial decisions without adding more silos or biases. You’ll also get uniform quality and consistency from different sources.
The key to ensuring data analytics are relevant and reliable is to prioritize data insight. Whether you’re a big company with a good product or a startup with an amazing idea, you need data insight and market opportunity analysis. It’ll help you expand internationally, and International trade demonstrates its importance.
Ways data insight helps MSMEs grow
After discussing what data analytics is, let’s take a look at ways in which you can use it to grow your company as a whole. Analytics can help your business generate more results by making more informed decisions. Using data insights, MSMEs can improve their performance in these ways:
● Improved cost-efficiency
With the aid of data insights, companies can optimize their costs and allocate them more efficiently by making better use of data. If businesses are aware of departmental expenditures, they are more likely to be able to save money and optimize processes. For a company, getting business insights is crucial when determining how to use its resources most efficiently, particularly when it is just starting out.
● More efficient revenue management
Using data insights can help MSMEs analyze the time spent on each activity since most of them work against a tight deadline during the early stages of their business. When the necessary insights are used, it is possible to increase revenue and meet deadlines.
● Aids in streamlining daily operations
The use of data insights has been able to help a large number of MSMEs make quick decisions or cut corners in a cost-effective manner. By implementing the right insights and improving the efficiency of business operations, MSMEs can increase revenue and profitability and achieve long-term growth.
● A better customer experience
There are several technologies that MSME businesses can use to improve their customer experience, regardless of the industry they operate in. Insights obtained from automated processes can significantly affect how customers experience their service and satisfaction.
● Analysis of competitors
Any business needs to analyze the moves of its competitors. Data insights can help companies understand competitor strategies and improve product development. By keeping an eye on competitors’ trends and actions, they can keep up with industry changes.
The MSME sector is breaking the myth that data can only be used in large organizations by leveraging data insights extensively. Today, when competition is fierce in every industry, keeping an eye on the competitors’ moves and the market’s trends is essential. This requires conducting research and obtaining relevant data, regardless of the company’s size.
All in all, data insight plays an increasingly important role in MSMEs, giving them valuable information that serves as the foundation for developing policies and planning for the future.
(The author is Mr. Anupreet Singh Jaggi, Business Head, Ace Exhibitions and the views expressed in this article are his own)