Think Your Company Is Too Small For Big Data?  Think Again!


In the strictest sense, if someone means the ability to analyze terabytes (as in 1,000 gigabytes) of transactional data for nuanced customer behavior for a small to medium size business, then the answer is ‘yes.’  Your company is too small for big data, at least that big data.  That said, one of the greatest exploitable opportunities ignored by small and midsize business owners is utilizing their own transactional data, through data analytics, to gain actionable intelligence for improved efficiency and profitability.  You may wonder, where is this transactional data we are referring to.  Well, do you use QuickBooks, Sage, SAP Business One, Fishbowl or just about any other accounting/ERP system other than paper ledgers to run your business?

You may think your company is too small for big data, but you would most likely be mistaken. Not utilizing your business transactional data is bad for business. Click to Tweet

“That’s where the money is!”

Willie Sutton was the infamous bank robber that, when queried by a reporter about his motivation for robbing banks, stated the obvious.  But his statement is analogous to our response to business owners that are curious enough to explore data analytics, given that we tell them to look to their accounting/ERP systems, ’because that’s where the data is!’  Most business owners do not think of their accounting/ERP systems as data repositories, but that is what these systems represent.  In fact, business owners and their teams that have been dutifully recording invoices, receipts, payroll data, expense payments, inventory movements and the like, are already in possession of a gold mine of transactional data ready for prospecting.

Analytical Insight Enables Potent Action

Though the value proposition of data analytics for business owners may seem difficult to grasp or uncertain, one should assess the opportunity costs associated with using the traditional ‘by seat of one’s pants’ method.  For example, what is the opportunity cost of maintaining high inventory levels because of an inability to accurately set reorder points established to meet your service levels vs. other investment opportunities?  Or what if you can not determine the profitability differential between various customers when trying to allocate scarce resources across your company and make the wrong choice due to a lack of data?  If you compare the cost of poor decision making vs. informed action, the value proposition becomes much clearer and compelling.

What Are The Next Steps?

If you are ready to learn more about how you can begin exploiting your transactional data, then contact  Profitwyse today.  Our firm focuses on implementing data warehouses and data analytics that leverage accounting/ERP system data, enabling clients to make better decisions that are aligned with strategic objections. 

If you are a business owner that is looking for ways to leverage your data analytics, please contact us today

 

About the Author
About the Author
Chase Morrison  provides CFO services, utilizing Profitwyse’s 3D Growth Platform™, enabling his business owner clients to more readily achieve their goals for wealth creation and family legacy.  Contact him today to learn how your business can hit the accelerator using Profitwyse’s proven platform.

 

Click to download

 

Get Smarter! – Read The Monthly CEO Advisory February 2020


Profitwyse is a proud participant in the Monthly CEO Advisory magazine published by Ken Keller with Strategic Advisory Boards.  The Advisory is a compilation of timely articles from professionals with deep expertise in all areas affecting the privately-held business space.  If you are a chief executive or a C-suite member of a midsize business, The Monthly CEO Advisory contains valuable information take you can put into action today.

Check out the CEO Advisory Report February 2020 for valuable business-related insights from trusted business advisors in finance, sales, insurance and more. Click to Tweet

If you would like to be added on regular distribution, please send us a note via our Contact Us page.

What’s in this Edition of The Monthly CEO Advisory February 2020

CFO Insights | Chase Morrison

Is My Company Too Small for Big Data?

Business Growth & Profits | Ken Keller

What You Need to do in February

Commercial Real Estate | Sheryl Mazirow

Turning Away From Open Office Plans

Commercial Insurance | Paul Palkovic

The Little Demon That May Be Lurking in Your Commercial Property Insurance Policy

Human Resources Compliance | Barry Cohn

Guard Your Company Against Employee Ghosting

Manufacturing Excellence | BJ Schramm

Plan – Do – Check – Act

Information Technology | Craig Pollack

Six Things to Avoid When Selecting a New IT Support Company

Company Benefits | Peter Ettinger

You’re Probably Paying Too Much For Drugs

Alternative Financing | Kristy Melton

What do You do If You Need Money Right Away

Sales Management | Paul Mitchell

Benefits of Outsourcing Sales Operations

If you have additional questions regarding any of the above segments, please reach out to authors.  Their contact information is included in with the content.

As always, if you need financial management expertise to accelerate growth, improve profitability or enhance cash flow, feel free to contact us today

 

CEO Advisory January 2020
Click to download

 

Get Smarter! — Read The Monthly CEO Advisory January 2020


Profitwyse is a proud participant in the Monthly CEO Advisory magazine published by Ken Keller with Strategic Advisory Boards.  The Advisory is a compilation of timely articles from professionals with deep expertise in all areas affecting the privately-held business space.  If you are a chief executive or a C-suite member of a midsize business, The Monthly CEO Advisory contains valuable information take you can put into action today.

Monthly CEO Advisory January 2020 is available for your review. Learn about relevant business issues from industry experts. Click to Tweet

If you would like to be added on regular distribution, please send us a note via our Contact Us page.

What’s in this Edition of The Monthly CEO Advisory January 2020

CFO Insights | Chase Morrison

Why Benchmark Your Company

Business Growth & Profits | Ken Keller

Are you the Obstacle to Growth?

Commercial Real Estate | Sheryl Mazirow

What are Tenant Estoppels and Why Should Tenants be Concerned?

Commercial Insurance | Paul Palkovic

The Changing Role of a Commercial Insurance Broker

Human Resources Compliance | Barry Cohn

It’s Time to Rethink Your Time Off Policies

Manufacturing Excellence | BJ Schramm

Empathizing With Your Most Important Asset — Your Workforce

Information Technology | Craig Pollack

What You Should Expect to Pay for IT Services

Company Benefits | Peter Ettinger

Are You Ready for the New California Labor Laws

Alternative Financing | Kristy Melton

Alternative Funding Options for Your Business

If you have additional questions regarding any of the above segments, please reach out to authors.  Their contact information is included in with the content.

As always, if you need financial management expertise to accelerate growth, improve profitability or enhance cash flow, feel free to contact us today