How Data Analytics can Safe Guard 98% of Malaysian Enterprises
Attributed to Datuk Tan Seng Kit, Group Managing Director, Strateq Group
Many have speculated about potentially tough economic times ahead. In fact leading investment bankers – Goldman Sachs have reported a 25% chance of America still undergoing a recession at some point this year.
This could have a knock-on effect driving the rest of the world into a recession. While the likelihood continues to decrease and probability could have damning impact on local businesses especially within the SME space. This is particularly concerning in Malaysia as SMEs make up over 98% of enterprises within the nation and contribute close to 40% of Malaysia’s Gross Domestic Product (GDP).
With this in mind and coming from an enterprise solutions background for over 40 years – now leading a holistic enterprise solutions provider Strateq Group, I want to take this opportunity to share with SMEs and entrepreneurs how data analytics can help shore up operations, expenditure and potential improve business to help weather the probable economic storm ahead.
To be clear, data analytics is the process of examining and analyzing raw data with the goal of drawing meaningful insights and conclusions from the data. Data analytics can help businesses grow in numerous ways by providing insights into customer behaviour, identifying trends, and highlighting areas for improvement.
Data analytics can help businesses segment their customer base into different groups based on demographics, behaviour, and preferences. By understanding these segments, businesses can tailor their marketing messages and promotions to specific groups, improving the effectiveness of their marketing campaigns.
For example, a business that sells beauty products might segment its customer base into different groups based on age, gender, and purchasing behaviour. By doing so, they can create targeted promotions and messages for each group, which will likely result in higher conversion rates and customer loyalty.
Data analytics can help businesses identify trends and patterns in customer behaviour, market trends, and industry performance. This can help businesses stay ahead of the curve and adapt to changing market conditions.
For example, a business that sells electronic products might use data analytics to identify trends in customer behaviour, such as increased demand for smart home devices. This insight can help the business adapt its product offerings and marketing strategies to better cater to this trend.
Data analytics can help businesses identify areas where they can improve their operational efficiency, reduce costs, and increase productivity. By analyzing data on sales, inventory, and supply chain management, businesses can identify areas where they can streamline their processes and improve their bottom line.
For example, a business that operates a chain of restaurants might use data analytics to identify inefficiencies in their supply chain management, such as delays in delivery times or excess inventory. By addressing these inefficiencies, the business can reduce costs and improve its overall profitability.
Data analytics can also help businesses make predictions about future trends and customer behaviour. This can help businesses anticipate changes in the market and adapt their strategies accordingly.
For example, a business that sells fashion products might use data analytics to predict future fashion trends, such as the popularity of certain colours or fabrics. By anticipating these trends, the business can adjust its product offerings and marketing strategies to stay ahead of the competition.
Data analytics can help businesses grow by providing valuable insights into customer behaviour, market trends, and industry performance. By using data analytics, businesses can segment their customer base, identify trends and patterns, improve operational efficiency, make predictions about future trends, and gather customer feedback. By leveraging these insights, businesses can adapt their strategies to better meet the needs of their customers, improve their bottom line, and stay ahead of the competition especially with the dangers of a potential recession.
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