Leveraging your business data to drive better business outcomes

Smaller firms may hear about AI and how data is driving the big corporations of the world, but they often don’t realize that they can do the same. The size and age of your business doesn’t have to be a limiting factor in whether you use data. Today’s blog is a quick look at data management for the small firm.

The first lesson is: don’t take your data for granted. The basic business model for some large IT companies is monetizing the data that they collect. While this may not be your goal, you probably collect a great deal of data about your customers, prospects, and operations. An MSP can help you make better use of that data. Here are just three examples:

Marketing

Data tells you who is interested, when they’re interested, and in what they are interested. Data can tell you where each individual prospect sits in the sales funnel, so your marketing messages reach them exactly where they are. It can also track the performance of your online marketing initiatives.

Forecasting and Sales

Customer Relationship Management applications exist because of the data that can now be collected. They monitor sales efforts, nurture leads, and work to improve customer engagement.

In-house and Operations

Data can track all manner of things in your production of goods or services, identifying where resources are being spent in each step of the process. Data can also be used in scheduling and pricing, although these tools can have human resource and customer relations implications that need to be carefully considered.

Planning and the Future

Technology is more than just something to run your business today. It can be a source of innovation for the future of the business, pushing it in new directions. You should be taking a proactive view of technology as a strategic tool for the long-term growth of the business. How can new technology help with in-house software development, infrastructure upgrades, digital transformation, and product innovation? Questions to ask in this context would be “can technology improve the delivery of products and services, or improve qualitatively the nature of the product or service itself?” As part of C-suite plans to stay competitive and thrive in the market, leadership needs to understand what new technologies are available for future innovation. However, that means you need technology support that is focussed on strategic planning; understanding new technologies that can move the business forward. For an SMB, Managed Service Provider can be the CIO/CTO that understands your business and helps plans for the future.

In summary, most SMBs are limited in how they can make use of technology in their strategic planning. As a result, this may compromise their capacity to remain competitive in the long-term. Consider using an MSP as a strategic partner in your long term planning.

Roadmaps for Data Security and for Strategic Planning

It is time you were encouraged to stop looking at the technology you use to run your business as just some reliable piece of invisible infrastructure that hums along in the background.

Instead, business owners should look at technology from a strategic perspective. What can technology do to support business in the future? How can new technology help your present business evolve and adapt to new market demands and customer expectations? For instance, AI is a new technology that may create serious disruption in many industries. Failure to think into the future could put a business at a disadvantage. Unfortunately, most small businesses face two challenges that make it difficult to incorporate new technology into their strategic plans.

1. In-house staff focus more on maintaining existing technology – For many SMBs, in-house IT staff resources are limited. As a result, much of their time and attention must be focused on putting out fires and handling emergencies. Beyond that, day-to-day maintenance and support of your IT infrastructure is probably stretching them past the breaking point.
2. Leadership expertise in SMBs is concentrated entirely on running the business and growing revenues. Very simply, SMB leadership’s skills are in their specific industry. Management needs to be focused on the product or service and driving revenues. The issues get back to “core competencies.” A business that gets distracted from its core competencies may damage its focus on quality and meeting customer expectations.

Because of these two challenges, SMBs tend to not integrate technology into long-term strategic planning. They simply don’t have the luxury of devoting resources to IT planning. There is a solution, however. An MSP has the depth and breadth of resources that you could never hope to build and manage internally. To do so would drain management focus and be financially unsupportable.

What can an MSP bring to a small business? Here are six areas where an MSP can help a small business act strategically and integrate technology into long-term growth plans.

Building a Technology Roadmap

At the heart of a technology roadmap is this question: “Can technology improve the delivery of products and services or improve qualitatively the nature of the product or service itself?” A technology roadmap works to develop a complete, concrete answer to this question. It is a long-term planning document that defines how and what technology should be incorporated into the growth of the business. Individual parts of a roadmap will address specific aspects of the company’s technology such as software development, infrastructure upgrades, digital transformation, and product innovation. A technology roadmap that includes product innovation is especially important. The roadmap may also include research and development initiatives.

Creating a Security Roadmap

A security roadmap is the result of a risk management analysis. By analyzing the vulnerabilities in your IT infrastructure, including cyber security threats, an MSP can create a security roadmap that identifies all the actions that need to be taken to fortify your IT infrastructure as much as possible. Like a technology roadmap, it is a specific plan for ensuring that your data, network hardware and software remains safe from cybercriminals. Data is critical to your business. It is proprietary and it is also very vulnerable to theft. A data breach can be a real threat to the viability of your business. The legal and reputational consequences can take down a small business. A security roadmap can include:

• Determining what regulations govern your data (HIPAA, GDPR, FERPA, etc.)
• Developing access protocols
• Training employees about human vulnerabilities to cybercrimes, such a phishing
• Creating effective backup procedures, which are a particularly important defense against ransomware attacks

An MSP can help you prepare your business for tomorrow’s market

Many small businesses tend to view an MSP as the local fire truck. Available when an emergency happens, they rush in, put out whatever tech fires broke out, and then leave. This is also known as the “break-fix” approach to technical support. However, an MSP can bring many types of value to a small business. In particular, an MSP can function as a strategic partner for a small business. Technology needs to be part of your long-term strategic planning. MSPs have the ability to devote energy to understanding emerging trends that can help your organization develop a “technology roadmap.” This is a long-term strategy document that outlines how and what technology should be used going forward. The roadmap takes a proactive view of technology as a strategic tool for the long-term growth of the business. Individual parts of a technology road map will address specific aspects of the company’s “technology” such as software development, infrastructure upgrades, digital transformation, and product innovation. A technology roadmap that includes product innovation is especially important. Questions to ask in this context would be “can technology improve the delivery of products and services, or improve qualitatively the nature of the product or service itself?” The roadmap may also include research and development initiatives. As part of C-suite plans to stay competitive and thrive in the market, leadership needs to understand what new technologies are available for future innovation.

Here are just a few examples of how an MSP’s specialized staff with expertise can help.

Software Development – Strategic IT should be evaluating the present software applications and addressing improvements and re-designs that will address potential customer demands.

Infrastructure Upgrades as the Business Grows – There are many examples, but a simple one is redundancy. As a business grows, it becomes increasingly important to address redundancy. The larger the business, the more complex the infrastructure becomes. It is important that businesses look throughout the infrastructure and identify the single points of failure that need to be addressed and developing real-time work arounds and disaster recovery plans is an increasingly complex task that requires significant resources and attention.

Digital Transformation – Digital transformation refers to taking tasks and using digital tools to improve efficiency and response. This can mean anything from moving from in-house servers to the cloud, using SaaS, creating online portals for sales and marketing, to just about anything you can imagine. A new example is the use of AI, especially machine learning which can be used to develop more effective inventory planning and offer more precise marketing responses to individual prospects.

Security Roadmaps – A security roadmap is similar to a technology roadmap, but with a very tight focus. Ensuring your data remains safe from cybercriminals, internal error, and software or hardware breakdowns is the goal of a security roadmap. Your data is critical to your business. It is proprietary and it is also very vulnerable to theft. A data breach can be a real threat to the viability of your business. The legal and reputational consequences can take down a small business. A security roadmap can include:

• Determining what regulations govern your data (HIPAA, GDPR, FERPA, etc.)
• Developing access protocols
• Training employees about human vulnerabilities to cybercrimes, such a phishing
• Creating effective backup procedures, which are particularly important defense against ransomware attacks

Data Management: Everyone knows that data is valuable. The basic business model of some of the largest IT companies hinges partly on the value of data for advertising. But for even the smallest business, significant amounts of data can now be collected. An MSP can help an SMB use that data to tighten inventory, for example. Three ways data helps your business succeed.

Marketing – Data tells you who is interested, when they’re interested, and in what they are interested. Data can tell you where each individual prospect sits in the sales funnel, so your marketing messages reach them exactly where they are. It can also track the performance of your online marketing initiatives.

Forecasting and Sales – Customer Relationship Management applications exist because of the data that can now be collected. They monitor sales efforts, nurture leads, and work to improve customer engagement.

In-house and Operations – Data can track all manner of things in your production of goods or services, identifying where resources are being spent in each step of the process. Data can also be used in scheduling and pricing, although these tools can have human resource and customer relations implications that need to be carefully considered.

In short, there are a lot of areas where technology can be used to not only run your business today but can propel your business forward. Technology that is viewed strategically, not just as a tool to get things done today, can drive revenues and help a SMB remain competitive as the market changes. An MSP has the deep experience and resources to understand your business and contribute to your strategic planning at the C-suite level without requiring the resources necessary to build it up from within.