The ways in which independent companies are doing business has changed significantly in the last few years, and many more such moves are likely to come in the near future. That includes greater integration of big data by small businesses across the country.
There are a number of changes in the pipeline for small businesses in the coming year, according to a report from the University of Denver’s Daniels College of Business. These include upticks in technological adoption, big data use, small business expansion and other factors that can help to spur not only the sector itself, but the entire U.S. economy. Many smaller companies are already relying on big data in a number of ways, but the methods by which they do so, and the prevalence of that usage will likely become even greater. In addition, customers and other sectors could see benefits from this broader adoption as well.
“As more businesses use ‘big data’ to boost profits, track trends and grow, the influx of analytics and ‘big data’ will just become ‘data,'” said Andrew Urbaczewski, PhD, associate professor and chair of the Department of Business Information and Analytics. “Massive data sets will become common data that more businesses use to propel growth and integrate within everyday operations. … As data becomes more readily available, usable and understandable, local governments will utilize existing data sets to make smarter decisions. Cities will utilize crime reports, school information and housing prices to make wiser decisions and more efficient investments. This intelligent data will mean more government efficacy and smarter consumers.”
Other changes coming as well
Urbaczewski also added that as the availability of this kind of information increases, the cost of actually accessing and using it will likely fall. This may be particularly true thanks to the cloud, which will enable small businesses to access and aggregate information from many different sources quickly and easily. However, Stephen Miller, senior director of entrepreneurship at the school, noted that the increased reliance on cloud computing and other systems could prompt small businesses to grow more cautious about their security.
Owners may not know just how financially devastating an issue like a data breach can be for their companies, but the costs can stretch into the tens of thousands of dollars – or beyond – very easily. As such, having a type of small business insurance known as tech insurance, designed specifically to help cover these costs, might be a wise investment.