Small businesses are the backbone of the United States economy, playing a vital role in fostering innovation, creating jobs and driving economic growth.
According to the U.S. Chamber of Commerce, there were 33.2 million small businesses in America in 2023, which accounted for 99.9 percent of all U.S. businesses. However, around 595,000 small businesses fail each year in the United States.
Adapting to market trends, keeping a close eye on finances, minimizing overhead costs and innovation are key elements for small businesses to survive and flourish. Data plays an integral role in all aspects of managing a small business. By leveraging data, small businesses can gain deep insights into customer behavior, preferences and trends.
Unfortunately, too many small businesses struggle to understand their data, which is scattered across multiple systems. This leaves ample room for mistakes and poor business choices. Data must be well-organized and accurate to be used effectively, which is why a data lakehouse is essential.
Keep reading to learn about data lakehouses, why data is important, the effects of poor data management and practical use cases for small businesses. Finally, we’ll explain how to start your lakehouse journey.
What Is a Data Lakehouse?
A data lakehouse is a platform for storing, managing and analyzing structured and unstructured data in a single location. Several companies offer data lakehouse solutions, but the key is to ensure it is flexible and scalable.
As a Microsoft Partner, Cherry Bekaert offers two solutions that help small businesses with data management. One product is Microsoft Fabric, a cloud-based platform that can handle large volumes of data using various tools and frameworks to process and analyze that data. The other product is Azure Databricks, a lakehouse used for big data workloads, including batch processing, interactive queries, real-time analytics, machine learning and graph processing.
You might also have heard of the terms data lakes or data warehouses. The main differences between these solutions are the types of data they store, the structure of the data and the flexibility for analytics.
Choosing your lakehouse solution might seem daunting, but it doesn’t have to be. Choosing the right partner is crucial for achieving success.
Why Is My Data Important?
Data holds immense power for small businesses. By leveraging data analytics, small businesses can gain deep insights into customer behavior, preferences and trends, allowing for more personalized and effective marketing strategies.
Imagine a small clothing store that leverages data to better understand customer preferences. The store owner can use technology to analyze purchase data, identifying that a large portion of sales come from repeat customers during special events. Based on this data, the store owner can then make an informed decision to run targeted marketing campaigns during sales events.
Proper data storage ensures that data remains accurate, accessible and secure. If this store owner’s data is inaccurate or easily accessible, running a marketing campaign for clothing sales becomes more difficult.
Poor data management can significantly impact small businesses in multiple areas, including:
- Operational Inefficiencies: When data is poorly managed, employees may spend excessive time searching for information, verifying conflicting data or correcting errors. This delays operations and increases operational costs.
- Inaccurate Decision-Making: Decisions based on inaccurate data can lead to strategic missteps, such as mispricing products.
- Financial Losses: Poor data quality can result in errors in billing, payroll and inventory management.
- Customer Dissatisfaction: No one wants dissatisfied customers, but inaccurate customer data can lead to poor customer service. This may include sending incorrect orders or failing to promptly address customer issues.
- Reduced Productivity: Inefficient data management can hinder employee productivity because more time is spent on manual tasks.
Practical Use Cases for Small and Mid-Sized Businesses
A data lakehouse is beneficial for descriptive analytics, the process of using historical data to identify patterns, trends and relationships. It summarizes past events rather than predicting future outcomes or prescribing actions.
A data lakehouse for descriptive analytics can help small businesses in the following areas:
- Revenue Analysis
- Inventory Management
- Sales Trends
- Market Segmentation
- Custom Behavior
- Supplier Performance Analytics
- Competitive Benchmarking
A data lakehouse also is beneficial for predictive analytics. This process uses historical data, statistical algorithms and machine learning techniques to identify the likelihood of future outcomes based on past data.
A data lakehouse for prescriptive analytics can help small businesses in the following areas:
- Repairs and Maintenance Expenses
- Forecasting Demand
- Pricing Optimization
- Supply Chain Optimization
- Churn/Customer Turnover
- Demand for Spare Parts
- Energy Consumption for Efficiency
- Remote Monitoring
Additionally, a data lakehouse is beneficial for advanced AI analytics. This is a set of sophisticated data analysis techniques that leverage AI to derive deeper insights, make predictions and inform decision-making.
A data lakehouse for advanced analytics for AI can help small businesses in the following areas:
- Automation and Control
- Precision Solutions
- Market Forecasting
- Natural Language Processing for Customer Support
- Weather Analytics
- Regulatory Compliance
- Environmental Impact Reduction
- Adopting a Lakehouse
Get Started With a Data Lakehouse
Becoming a data-driven organization is a journey that takes time. However, successful data-driven companies consistently exhibit qualities that set them apart from competitors.
Cherry Bekaert wants to help you embark on your data lakehouse journey. We provide a range of accelerators designed to quickly integrate entire data sources, a crucial step for a successful data analytics program. We will guide you toward the right data lakehouse solution to meet your needs during this process.
As a trusted Microsoft Partner, our certified professionals will work closely with you through every phase of your data lakehouse implementation. We offer comprehensive support, helping you avoid common pitfalls and ensuring a seamless and effective transition. By leveraging cutting-edge technologies and innovative strategies, we will help you lead your industry. We look forward to hearing from you.
