Business analytics for the digital economy
Most companies in the new digital economy see digital transformation as an opportunity to become more innovative, flexible and agile. Competition is fierce, particularly for SMEs, who need to take advantage of any possible edge they can acquire to thrive in the digital economy. Often, it’s the small to midsize companies that see the need most clearly to innovate in the area of customer experience. To do this effectively requires good business intelligence, based on comprehensive business analytics. There are many tools out there for gathering metrics, but it is the interpretation of them, turning them into predictive analytics that truly makes them meaningful.
When do tools become strategic?
In some ways, SMEs are better positioned to not only adopt new tools, but integrate new work processes into their business strategy, as well. They suffer less disruption to their business, and they should take advantage of that. Larger enterprises are more risk averse and encumbered by more complex governance structures: boards, shareholders, and stakeholders may want to innovate and improve, they are insecure about examining and changing their status quo.
Digital transformation today
In order to better understand digital transformation for SMEs in the digital economy, the International Data Corporation (IDC)—a premier global provider of market intelligence, advisory services—conducted a survey of 3,210 small and midsize firms for 11 different countries. The survey was sponsored by SAP.
The IDC were looking to identify different benefits and opportunities that come from digital transformation. These are some of the questions they were asking:
- How do attitudes and actions of companies set the stage for business success? Small and midsize firms agree that advanced technology can help improve performance and outcomes, but do business results support this view?
- How are successful firms leveraging advanced technology in the digital economy?
- Where is digital transformation making a difference in different size firms and what steps should companies take to ensure success moving forward?
Advanced business analytics are key to success and transformation — Performance measures can help track progress (rear view mirrors), but advanced predictive analytics can help firms see what is coming (headlights).
— IDC InfoBrief
How SMEs are adapting to digital transformation
According to the IDC research, the fastest growing SMEs are the ones using technology to digitize their businesses. Watch this short video to find out why there is a clear link between digital transformation and revenue growth.