A Nielsen article “How Small Business Can Scale the Big Data Barrier” quotes John Jantsch, small business consultant and author of “Duct Tape Marketing” who asserts… “Going forward, the companies that have the best data will win.” The article later states… “The good news for small business owners is that the data boom isn’t reserved for large corporations. Smaller shops may not have the same volume of data available as big businesses… but they can capitalize just the same.”
We can only manage what we know.
When a company is first formed with one or a few individuals and a limited customer base and product offering, the owner knows pretty much everything that is going on. It’s all they think aobut – who is late paying? How much will the price increase in that raw material affect margin? where is the bottle neck in production? which deliveries are late? etc etc
But as a company grows so does the number of data points – and the owner’s ability to internally process that increasing mass of data begins to decline until one day it happens: there is a mismatch. What the owner’s gut said is wrong. This mismatch is usually around how much cash is in the bank, which is bad enough. But the impact of that mismatch is much greater – it can cause the owner to start second guessing themselves and everyone else and dive into the business, rather than leading.
The only way out of this situation is through data management. Accurate data organized and tracked in an integrated fashion is the key.
Because we can only manage what we know….