With data now increasingly being among the key differentiators for businesses to grow, it is now critical for small and medium businesses (SMBs) also to become data-driven and have a data strategy to outperform their peers, according to a new report commissioned by Amazon Web Services and S&P Market Intelligence on understanding the role of data for SMBs.
The report surveying 2,362 SMBs globally (16 per cent from India) noted that 65 per cent of highly data-driven SMB respondents financially outperform their competitors. This was almost twice as much as less data-driven SMBs (33 per cent).
“SMBs with a high level of data maturity adopt AI at twice the rate of their competitors,” the survey said underscoring that while AI is powerful and transformative, it’s data that fuels its efficacy.
The data-led growth also indicates a positive impact on different segments. For instance, 69 per cent of highly data-driven SMBs part of the survey were roughly twice as likely to experience a positive impact from data on customer satisfaction than less data-driven competitors. Similarly, 65 per cent cited the impact on revenue and efficiency, 61 per cent claimed the impact on marketing, 55 per cent cited the impact on cost reduction, and more.
According to the survey, such highly data-driven SMBs have adopted AI across key business areas. 52 per cent of respondents said they were using AI to keep their business secure through automation while 53 per cent were using AI for content creation and 41 per cent using it for marketing and advertising.
Despite the benefits, most SMBs are yet to tap into the opportunity offered by data and AI. The survey noted that only 19 per cent of SMBs believe themselves to be highly data-driven.
“That means the majority of SMBs risk missing an opportunity to outperform their competitors, differentiate their business, and significantly improve decision-making,” the report said.
