All CEOs and CIOs are curious how they can use external and analytics in order to gain a sustainable competitive advantage for their companies, being able to predict new substantial trends earlier than competitors. “Big Data” became a widely-used term for admired ultimate future big success for companies that may apply big data to…what? How data management may help businesses? In this analytical insight, we will explore main principles in order to understand, how big data is practically applicable and how companies may benefit from extended (advanced) analytics. From our experience of work with our clients from different industries, top-managers of SMB companies frequently do not have a clear picture of data management advantages, often preferring to distance from any more or less substantial investments in data management tools. But let us start from the beginning: why still so many companies are not so excited about new data management tools implementation, started from absolutely must-have ERP system  and evolving in more complex advanced analytic tools? The answer is still the same: we are not ready, let’s move by our own way that we understand and used to. The scare to assume responsibility for data management tools implementation, development of new data culture in the company, growing new-type digital leadership patterns – all these factors lead to the business results very far from companies potential that remains deeply hidden in “historical path” of the company. From other part, executives look with admiration at how Google, Amazon and other “stars” have boosted their business performance and eclipsed competitors with powerful new business models that derive from the ability to exploit data. What will be with Amazon, if it would decide to remain on its “historical path” to remain the largest books reseller? According to research by Andrew McAfee and Erik Brynjolfsson, of MIT, companies that inject big data and analytics into their operations show productivity rates and profitability that are minimum 5-6% higher than those of their peers. Another example: SMBs benefit up to 23% profit growth after ERP implementation during first 12-18 months. What is the connection between big data and ERP? ERP is the necessary starting point when a company consolidates its internal and external data in one platform. This allows to have a clear instant whole picture of the operational and financial situation inside the company and to further develop necessary analytic data tools. With growth of the business, ERP system is becoming more complex, data management more target-oriented and amount of data grows up to “big”. There is a substantial difference of data management approach for big companies and SMBs. Big companies must be able to identify, combine, and manage multiple sources of data, as well as they need the capability to build advanced analytic models for predicting and optimizing outcomes. But most critical: management of big companies must be strong enough to transform the company in the way that the data and models actually yield better decisions. For all this a clearly defined data strategy must govern the digital transformation of big companies, as well as the right technology architecture and capabilities. Data sourcing, model building, and organizational transformation – all must fundamentally serve to the desired business impact. For this it is absolutely important that managers across the companies understand and support the digital transformation. What are the best technology and analytics practices for small and midsize SMBs? The pace and nature of a small or midsize firm’s ideal engagement with the latest analytics technology will naturally vary by company type, but the process will be similar, following three basic stages:

• Identification of key performance metrics that define successful business performance
• Collection and organization of information supporting key performance metrics
• Analysis of key performance metrics with the goal of decision support

While advanced analytics resources have traditionally been complicated and expensive, suited for the budgets and resources of larger firms, the latest generation of business intelligence ERP software is designed to meet the needs and wallets of small and midsize companies, helping eliminate the “learning gap” between SMBs and the larger firms already benefiting from advanced analytics.