Slide Show Version! SMB Group’s Top 10 SMB Tech Trends for 2015

(Originally published on the SMB Group website and available here in .pdf format).

Here are SMB Group’s Top 10 SMB Technology Trends for 2015 in slide show format!

SMB Group Top 10 SMB Technology Trends for 2015

crystal ball

(Originally published on the SMB Group website and available here in .pdf format).

Here are SMB Group’s Top 10 SMB Technology Trends for 2015! A more detailed description of each follows below.

(Note: SMB Group is the source for all research data quoted unless otherwise indicated.)

  1. Cloud is the new IT infrastructure for SMBs.
  2. SMB IT staff and channel partners evolve into cloud managers.
  3. SMBs recalibrate IT strategy and spending for a mobile world.
  4. The Internet of Things (IoT) comes into focus.
  5. SMBs reinvent marketing for the new buyer journey.
  6. KPIs trump ROI and TCO as the new “show me” metric.
  7. Analytics gets SMB-friendly with “bring your own data” and freemium offerings.
  8. It’s time to reimagine work.
  9. SMBs place a premium on protection.
  10. SMBs opt for an incremental, integrated solutions approach.

Detailed SMB Group Top 10 SMB Technology Trends for 2015

  1. Cloud is the new IT infrastructure for SMBs. SMBs increasingly view technology as a key business enabler. According to SMB Group research, 67% of small businesses (1–99 employees) and 81% of medium businesses (100–999 employees) say that technology solutions help them improve business outcomes or run the business better. However, most SMBs don’t have the resources necessary to keep pace with technology on their own. Just 19% of small businesses employ full-time dedicated IT staff. And while 86% of medium businesses have internal IT staff, they are typically IT generalists who lack expertise in newer technology areas such as mobile and analytics. As SMB requirements for fast, easy access to new social and mobile analytics solutions, more compute power and storage, and other services have been increasing, cloud adoption has boomed—with 92% of SMBs are now using at least one cloud business solution and 87% using at least one cloud infrastructure solution. In 2015, cloud solutions are poised for hockey stick growth as more SMB decision-makers turn to a cloud-first approach that not only supports existing business models, but also enables them to develop innovative new products, services and business models. Public cloud adoption will continue to significantly outpace that of private cloud, but more medium businesses in particular will consider a hybrid cloud approach, particularly in industries and applications where security and privacy are top concerns.
  2. SMB IT staff and channel partners evolve into cloud managers. As the cloud becomes mainstream, both internal SMB IT staff and external channel partner roles will evolve from implementation and break/fix support to become more proactive and strategic. SMBs will look for staff and channel partners that can work with line-of-business decision-makers to better align technology investments with business goals, select best-fit solutions and manage cloud service providers. Internal IT staff and channel partners will also need stronger integration expertise to help SMBs get more value from their technology investments. Channel partners will need to cultivate consultative selling and adjust staffing skill sets accordingly. SMB decision-makers will seek help to better understand and articulate new skill-set requirements, and to hire and/or contract for these needs. They will be hungry for thought leadership from SMB vendors, analysts and other influencers.
  3. SMBs recalibrate IT strategy and spending for a mobile world. A growing majority of SMBs now regard mobile solutions as essential business enablers, with 60% saying that mobile solutions are critical to their business. 86% of SMBs agree or strongly agree that mobile apps are a complement to traditional business applications, and 71% believe that mobile apps will replace some traditional solutions entirely. Mobile solutions also account for a growing share of SMBs’ technology budgets. SMB median spending on mobile technology and solutions as a percentage of total technology spending rose from roughly 12% in 2013 to 16% in 2014. Mobile service and device costs still account for the bulk of SMB mobile budgets, but SMB spending in other areas is rising as a percentage of mobile spend. On average, in 2014, SMBs spent 11% of their mobile dollars on apps, 9% on security, 11% on mobile management and 8% on consulting. Planned increased investment in mobile apps and more diverse mobile devices will necessitate a spike in mobile management adoption as well.
  4. The Internet of Things (IoT) comes into focus. IT vendors and prognosticators have been forecasting explosive growth for more intelligent and connected devices of all types. However, many IoT scenarios have been cast in a consumer light, such as smart watches and Tile (a locator for items such as keys and glasses), and the IoT vision has been fuzzy for many SMBs. In 2015, however, early but compelling use-case scenarios and solutions will emerge, leading more SMBs to the “aha” moments required to spark adoption. For instance, radio-frequency identification (RFID) has been used in logistics to track pallets and crates for some time, but mostly in closed-loop systems for high-value goods. IoT will help reduce RFID costs, making it more practical and appealing to retailers to use in order to help improve inventory accuracy, automate customer checkout and reduce theft. Beacons, which are indoor positioning systems that communicate directly with smart phones via Bluetooth, provide another compelling SMB use case. For example, a network of in-store beacons can identify the location of customers in a store and send them push notifications. Or, a trucking company could install beacons to monitor the state of its trucks, provide more timely maintenance, reduce vehicle downtime and decrease costs. Once SMBs understand use cases more clearly, IoT will hold great appeal because it is mostly invisible to end users, which negates adoption issues, and it provides real-time data for better decision-making and better business outcomes.
  5. SMBs reinvent marketing for the new buyer journey. The buyer journey is evolving rapidly and includes many more touch points than ever before. SMBs must transform their marketing approach to connect with more prospects and customers, and to provide them with the right information at the right time in the buying journey. Although many small and even medium businesses rely on point solutions, more will turn to an integrated marketing approach. In 2014, 20% of small businesses and 25% of medium businesses had purchased/upgraded to a marketing automation solution in the past 24 months. Meanwhile, 22% of small businesses and 26% of medium businesses plan to purchase/upgrade a marketing automation solution in the next 12 months. More SMBs will realize that choosing the right marketing automation solution is one of the most important technology decisions they will make, particularly as cloud, mobile, social, analytics and other technologies continue to transform the buying process.
  6. KPIs trump ROI and TCO as the new “show me” metric. Historically, vendors have tended to focus on proving solution value through return on investment (ROI) and total cost of ownership (TCO) analysis and metrics. But these assessments and metrics, while often beneficial, are frequently too vague and/or too dependent on nuanced measurements to be compelling for SMBs. In comparison, key performance indicators (KPIs) can provide SMBs with specific, actionable insights on business performance and what areas need improvement. With so many vendors fighting for SMB dollars, SMBs will increasingly seek out those that help them understand what KPIs are most relevant for their business and industry, and those that provide credible, specific metrics about how their solutions affect these KPIs.
  7. Analytics gets SMB-friendly with “bring your own data” and freemium offerings. Most SMBs don’t have data analysts on staff. These businesses often are intimidated by analytics solutions, which have traditionally been expensive, complex and difficult to use. But cloud computing, better user interfaces, visualization tools, improved algorithms and natural language capabilities as well as a growing number of freemium offerings designed for business decision-makers—not data scientists—are poised to change this. For instance, IBM’s Watson freemium offering allows users to bring in data from many sources, and it has capabilities that reduce data preparation and loading time, including a “fix it” button to repair data quality issues. Once data is plugged into Watson, users can query in natural language to analyze information. As more solutions designed for people with little or no data preparation and analytics skills emerge, analytics will become more consumable for SMBs.
  8. It’s time to reimagine work. Whether you prefer the hashtag #futureofwork, #newwaytowork, #reimaginework or something else, it’s clear that change is on the horizon. Processes, tools, attitudes and behaviors are shifting as mobile, social, cloud, analytics, IoT and other technology advances take hold in SMBs. Likewise, demographic shifts are reshaping the makeup of SMB workers as well as their expectations of what technology should do and how it should do it. For instance, millennials and digital natives are rising through the workforce ranks, while baby boomers are starting to retire or move to part-time work. Meanwhile, the ranks of temporary and contract workers continue to grow. The National Employment Law Project found that temporary help agencies, staffing agencies, professional employer organizations and employment placement agencies fill 2.5% of all jobs, up from 1.4% in 1990. In addition, easy-to-use consumer apps and devices have raised the bar for user experience in the business-to-business (B2B) world. This changing mix of resources, behavior, attitudes and requirements will lead more SMBs to seek better, easier and more affordable ways to access, evaluate, buy and get productive with technology solutions. Vendors that understand and plan for this evolution, provide clear solution value and make SMB customers feel that they are part of a strong ecosystem will have a decisive edge as this trend unfolds. Providing easy access and free trials, clear messaging, a delightful user experience, superior support and vibrant user communities will be key to tapping into this trend.
  9. SMBs place a premium on protection. SMBs are already using basic security and backup tools. However, our research shows that most use point solutions that only tackle part of the problem. The use of more comprehensive solutions to protect and manage data is still far from the norm. But greater reliance on technology, an increasing number of “moving parts” (traditional apps and infrastructure, cloud, social, mobile, etc.) and the need to manage data no matter where it resides necessitate better security, control and management capabilities. SMBs need only turn on the news to understand the financial, brand and legal ramifications of data breaches at large companies such as Sony Pictures, Home Depot and eBay. As awareness rises, SMBs will place a premium on more comprehensive solutions from vendors that offer proactive guidance, deeper expertise, stronger service-level agreements (SLAs) and 24/7 support for an always-on world.
  10. SMBs opt for an incremental, integrated solutions approach. New cloud, mobile and social solutions have made it easier for SMBs to access and use new applications, but they have offered little help with integration. Although 63% of SMBs have partially integrated some applications, 79% still rely on manual Excel file uploads or custom code for integration, which underscores the severity of the problem. SMBs typically lack the expertise and resources to manage the entire integration process, and they need solutions that both encompass and better integrate cloud, mobile, social, analytics, security and other technologies. However, SMBs don’t want—and can’t digest—monolithic solutions. Vendors need to accommodate SMB integration requirements with a LEGO-like approach that enables SMBs to acquire only what they need at a given point in time, and then to add on new capabilities (their own or those of partners) with as little friction as possible when new needs arise. Although integration remains one of the toughest technology nuts to crack, we see new hope. Open ecosystems, embedded integration capabilities and stronger APIs should help pave the way, as should toolsets designed to help non-technical users to configure integrations without coding if they understand business integration workflows and requirements. Built-in collaboration and social communities to help users crowdsource information, find experts and share and/or sell integrations will also be key to making SMB integration a reality.

About SMB Group

SMB Group focuses exclusively on researching and analyzing the highly fragmented “SMB market”—which is composed of many smaller, more discrete markets. Within the SMB market, SMB Group’s areas of focus include: Emerging Technologies, Cloud Computing, Managed Services, Business and Marketing Applications, Collaboration and Social Media Solutions, IT Infrastructure Management and Services, and Green IT.

Why Should You Take 3 Days Out of Your Schedule to Attend Dell World?

dell worldFrom November 4-6, Dell will host roughly 5,000 customer, partner and influencer attendees at its fourth annual Dell World conference in its hometown of Austin, Texas, and up to 10,000 attendees will tune in live online. 

For those who are unfamiliar with it, Dell World is Dell’s premier annual customer and partner event. Having found the three prior Dell World events I attended to be both informative and fun, I was eager to find out what’s on tap for this year’s event. So I was delighted to get a sneak preview from Jeanne Trogan, Dell’s Executive Director of Global Events, about what Dell World will offer.

With time arguably being our most valuable asset, here’s my take on why you’d want to take 3 days out of your busy schedule to attend Dell World based on this preview. 

  1. Gain a clearer understanding of how technology can help solve business problems and meet business goals.

Companies want to harness technology for better business outcomes, but it’s often hard to figure out how to do this. According to SMB Group’s 2014 SMB Routes to Market Study, small and medium businesses (SMBs) increasingly view technology as a means to automate operations and work more efficiently, and as a vital tool for creating and sustaining a vibrant, growing business (Figure 1). But the same study also shows that figuring out how different technology solutions can help their businesses is a top challenge for many SMBs.

Figure 1: SMB Technology Perspectives

Slide1

With this in mind, Dell World will provide customers–from SMB to large enterprises–with high-level advice and expertise to help them understand how and why key technology trends are reshaping business and consumer practices and behaviors. Keynote speakers, including Dell CEO Michael Dell and other tech and business innovators from business and academia will put cloud, mobile, analytics, security, the Internet of Things (IoT) and other trends into sharper focus, and help attendees stay ahead of the technology curve.

  1. Learn how to turn strategy into reality.

Refreshing your technology strategy and direction is the critical first step, but then you have to figure out how to execute. In fact, figuring out cost-effective ways to implement and/or upgrade solutions and to keep them up and running are also daunting challenges for SMBs (Figure 2).

Figure 2: SMB Technology Challenges

Slide1

Dell World is chock full of interactive sessions as well as hands-on labs and demos to help attendees kick the tires on new solutions, and fulfill the new technology requirements that their businesses require. Attendees can choose from more than 70 breakout sessions for a deeper dive into how to make technology work for the business. For instance session topics range from how to conquer cloud chaos to how to maximize mobility benefits without compromising security, and labs address areas such as big data and analytics, desktop virtualization, and streamlining IT management.

In the Solutions Expo, attendees can get an up close and personal look at the latest solutions. This year, Dell is reorienting the Solutions Expo from a Dell product-centric approach to a customer-centric problem and solution approach. The floor will feature different paths that start with technology problem areas, and guide customers toward relevant solutions and information. I think Dell’s refreshed approach to the Expo floor and demonstrations will be something that customer attendees will appreciate.

  1. Learn outside the classroom.

Just like when you were in school, sometimes the most important learning you do takes place outside of the classroom. Networking is a key part of Dell World with other attendees for fresh perspectives, exchange information and compare notes, not just at the event, but over the longer term. In addition to the serendipitous meetups that will happen spontaneously throughout Dell World, Dell is also scheduling meetings, such as an Executive Summit for CIOs, to facilitate peer-to-peer interaction.

  1. Enjoy Austin.

congress-avenue-bridgeIf you’ve been there, you know what I’m talking about! If you haven’t been there, you’re in for an amazing experience. In fact, Dell keeps asking attendees where they want to have Dell World, and people want to come back. Austin has something for everyone, whether you love music, great food or the great outdoors. For starters, Dell World will feature both Weezer and Duran Duran in concert–something for everyone from millennials to baby boomers. Get some fresh air with a walk or run around Town Lake, and grab a bite or drink at the Hula Hut as a reward. At night, check out the live music and gourmet food trucks on Rainey Street, or at Austin City Limits. And don’t forget to check out the nightly bat migration under the Congress Street Bridge. Last but not least, there’s the history–Dell was born in Austin in Michael Dell’s University of Texas dorm room. Since then, Austin has grown as a tech mecca.

Dell World also marks the one-year anniversary since founder Michael Dell won an extended battle to take the company private. In a recent CNBC interview, he expressed how liberating its been to off the Wall Street treadmill and able to focus on customers, and invest more time, R&D and energy on their behalf. I have a feeling that attendees will probably pick up on how this more positive energy is coming to fruition at Dell World as well.

SAP’s Big Bet on SMBs—With a Fast Growth, Millenial Twist

sapEarlier this week, I had the opportunity to meet with Kevin Gilroy, SAP’s Senior VP and GM for Global Small and Midsize Enterprise Segment & Indirect Channels to hear about SAP’s plans to go big in the small and medium business market, which SAP refers to as small and medium enterprises (SMEs). In a nutshell, the vendor is dramatically ramping up market, channel and solution initiatives to boost its profile and market share in SME.

These initiatives come with an interesting twist. Much of what SAP intends to do in the SME space will focus on recruiting partners—from both developer and VAR ranks—who can provide start-up millennial businesses with next generation solutions to help them grow at lightening speed.

The company claims that it is coming at this from a position of strength, with 80% of its 253,000 customers coming from the  SME ranks. But, SAP’s defines SMEs, as companies with revenues under $1 billion, which skews larger than how most vendors and analysts define it. So what shape will SAP’s new SME initiatives take?

Sharpening the SME Lens

telescopeTo put things in context, SAP’s courtship of SME isn’t new. As I discussed in Top SMB Takeaways: SAP Sapphire 2013, SAP has been sharpening its SME lens for a while. Last year, the vendor announced several new programs to bring the benefits of HANA’s data-crunching power to SMEs,  provide customers with the choice of running its solutions in public, private or hybrid cloud environments, and to make its solutions easier to buy and use.

As I noted in that post, SAP was focusing these initiatives not at the SME masses, but on high-growth SMEs, which SMB Group call Progressive SMBs. Progressive SMBs are growth driven, and more likely to invest in and use technology to gain market and competitive advantage than other SMBs. Our data shows that Progressive SMBs are also much more likely to anticipate revenue gains than peers whose tech investments are flat or declining.

Now, SAP is further sharpening the lens to zero in on millennials that are starting, running and making decisions in SME companies. According to Gilroy, millenials have a different view on technology than older counterparts. They are more comfortable with technology, and more likely to view it as a growth engine, instead of as a cost-cutter.

With a broad portfolio of cloud, mobile, analytics, ecommerce, talent management and ERP solutions, SAP offers many entry points for  these SMEs. The vendor has made some key acquisitions, including Ariba for ecommerce, and Success Factors for talent management, that broaden its footprint in the born on the cloud solution space. SAP has also introduced cloud-based options for many of its traditional on-premises solutions, such as SAP Business One. SMEs often prefer cloud solutions because they can usually be deployed faster, with less technical expertise and without big upfront capital expenditures, paving they way for SAP and its partners to expand their addressable market.

Furthermore, SAP is infusing HANA into its SME offerings, announcing general availability of the 9.0 version of the SAP® Business One application, version for SAP HANA. This is the first business management solution for SMEs running on SAP’s in-memory HANA computing platform. It enables SMEs to analyze structured and unstructured information within seconds instead of days, and use predictive analytics to gain new insights into data and optimize business decision-making.

Powering Up Partner Programs

1-hands-holding-jigsawSAP is powering up partner recruitment to fuel SME expansion. The vendor recruited 500 partners in 2013, growing the partner base to more than 11,500 worldwide, with about 1,000 in the U.S. Gilroy indicated that SAP is planning for double-digit channel growth, but will take a selective recruiting tack. In addition to looking for partners with a next-generation development vision, such as Liquid Analytics, SAP wants partners that are ready to scale their businesses to keep pace with SAP’s double-digit growth in SME.

The vendor has introduced and refreshed several programs to help partners go to market more effectively, including:

  • SAP Marketing University, a free, foundational marketing program to empower partners with the marketing skills they need to grow their businesses. SAP indicates the program has already led to over $1 billion in lead generation activities. Once partners have gone through the program, SAP provides them with the same marketing assets that are available to its internal marketing and sales teams.
  • Partner involvement in SAP’s Run Like Never Before ad campaign, launched in October of 2013. To data, more than 200 partners have taken executed campaigns as part of this program, which is 100% MDF reimbursable.
  • New “buy now, pay later” SME financing options that give SMEs zero-percent financing for up to 24 months for the purchase of any SAP product on the reseller price list.

Perspective

We’ve all seen how quickly innovative, fast-growth SMEs can become marquee brands, from tech sector stars such as LinkedIn to consumer brands such as Green Mountain coffee . SAP sees this too—and that technology is putting the creation-destruction cycle for businesses in hyper-drive.

So SAP’s big bet on becoming the leading IT solutions provider for these high-growth SMEs makes sense. As important, SAP is making an authentic effort to consumerize the SAP experience by reducing friction in choosing, buying and using SAP solutions.

But in this noisy SME space, crowded with competitors coveting the same high-growth SMEs, SAP still needs to do more to dispel the long-standing myth that SAP is only a big business brand. Although SAP solutions may be a good fit for high-growth SMEs, the vendor isn’t a household name with them or the millenials that its is seeking out.

SAP will also need to be cautious not to overplay the millennial hand. While millenials are likely to be more digitally savvy than older generations, the U.S. Small Business Administration says that self-employment among younger age groups has actually been dropping. From 2005 to 2010, self-employment among indi­viduals age 25 and under decreased 19 percent, compared to a 7 percent drop in the overall population. In reality, self-employment rates increase with age. For example, they were 2 percent for those 25 and under and 23 percent for those 65 and over in 2010. Simply stated, while millenials may prove to apply technology in business in more innovative ways, they are a relatively small part of the entrepreneurial population.

However, SAP is moving in the right direction. As it increases its investment to understand and engage with SMEs, SAP can continue to fine-tune its SMB story, and widen the circle of high-growth SMEs that will hear it and relate to it.

Big Data for the Little Guy

Originally published on November, 2013 on QBSBDC.com as the third of four blog posts in a series designed to help small businesses, and those that serve them, be successful.

Big data is a big buzzword–and for a good reason. We’ve already created 2.5 quintillion bytes of data – 90% in the last two years. 72 hours of video are uploaded to YouTube every minute. 160 million emails are sent every 60 seconds and 58 million tweets are sent each day.

Stock Market Background

Of course, most small businesses don’t need to understand and manage these boggling amounts of data. But small businesses do need to effectively find, measure and take action on the data that is important for running their businesses.

In other words, the “big” in Big Data is relative. If you’re having problems finding the data you need, when you need it, you have a big data problem! Lack of vision into what’s going on in the business can lead to missed opportunities and the inability to spot problems.

In the 2012 SMB Routes to Market Study, the SMB Group found small business use of analytics is low, but early adopters gain big advantages. Key benefits cited in the study were better answers to critical business questions, deeper understanding of customers and market trends, and the ability to identify and capitalize on opportunities while avoiding risk, just to name a few.

“I am always looking to improve my business based on what is going on in the industry, and the Trends feature in QuickBooks Online helps me do that,” said Michael Brewington, president of Arion Systems, Inc. “I can get a better understanding of my accounts receivables and payables versus other companies. That makes my business more competitive.”

analytics stat from smb group

Top Tips for Getting Smart About Your Data

What options exist for small business owners who want big business analytics capabilities? The SMB Group recommends small business owners ask themselves three questions before getting started:

  1. What information do you need to understand and measure?
  2. Where is the data and how much do you need to analyze?
  3. Who needs to use the data?

In addition to understanding what needs to be measured, small businesses should assess capabilities required to make data actionable for users. For example, do you require a solution with an easy to use interface or customized reporting? Starting with a focus on making data actionable will help ensure you maximize effectiveness once the solution is in place.

Something Old, Something New

There’s a chance your current solutions already include some form of analytics. Look into how well these tools support your needs, and integrate new analytics solutions to add more horsepower.

For example, the Trends tool included with Intuit’s QuickBooks Online product displays average sales growth, cash flow, income and expenses of small businesses within a specific industry or location to allow small business owners to compare themselves to similar businesses and make informed decisions. Trends figures are compiled from anonymized data submitted by 1.3 million QuickBooks users.

“I’ve been using the Trends feature in QuickBooks Online to see how my Oracle PeopleSoft consulting firm’s expenses compare to others in the industry,” Mr. Brewington said. “I can easily recognize if I need to continue to increase my profit margins and reduce costs to stay competitive. Trends makes it easy to stay aware of what is going on in the industry.”

Once you identify your analytics needs and any gaps in coverage, you can determine if you can implement a do-it-yourself analytics program or whether you need external resources to get the reporting you need.

Blog written by Laurie McCabe, who brings more than 20 years of experience in the IT industry to her role as co-founder and partner at SMB Group. Laurie has built widespread recognition for her capabilities and insights in the small and medium business (SMB) market in several areas, including cloud computing, mobile solutions, business solutions, social networking and collaboration, and managed services.

SMBs and Analytics: What Don’t You Know?

stock-photo-information-overload-concept-of-becoming-overtaxed-by-the-growing-flood-of-information-which-can-101476243SMB Group is planning to launch the 2013 SMB Analytics and Big Data Study this fall. We decided to develop this survey study because even though “big data” is the latest “big thing” in the IT industry, we see a scarcity of quantitative information about where small and medium businesses (SMBs) are on the analytics and big data learning curve.

At the same time, big data and analytics vendors are making enormous investments to develop and market analytics and big data solutions for SMBs. While there’s no question that analytics and big data solutions can benefit SMBs, vendors need a sharper picture of how SMBs view, think about and consume (or not!) analytics solutions in their organizations in order to successfully reach and serve these businesses.

What We Know

We learned in our 2012 SMB Routes to Market Study that SMBs are all over the map when it comes to using  analytics in their businesses. While about 41% of SMBs use analytics solutions, the kinds of solutions they use range from modules that are part of a business solution (such as CRM or ERP) to advanced analytics solutions such as SAS, IBM Cognos or Tableau. The other 59% are getting by with Excel and other homegrown analytics tools.

Slide1We also know that the cloud is on its way to becoming SMBs’ preferred deployment method for analytics and business intelligence solutions. Our survey results indicate that among SMBs that deployed analytics and BI solutions over the past two years, 31% SMBs chose to deploy a cloud-based solution. Looking ahead, 53% of SMBs planning to deploy an analytics solutions believe they will select a cloud offering.

Over the last few months, SMB Group has also been involved in different qualitative projects to understand how SMBs are using advanced analytics in their businesses. We’ve interviewed many early adopter SMBs about why they decided to step up from homegrown Excel spreadsheets to more advanced analytics solutions, and I’ve shared a their experiences in the posts noted at the end of this post.

What We Don’t Know Enough About–Yet!

The SMB Group’s 2013 SMB Analytics and Big Data Study will drill down to more comprehensively understand and gain quantitative metrics about SMB decision makers’ attitudes and practices regarding analytics and big data. It will answer questions that we have yet to see strong, quantifiable answers to, including:

  •  SMBs’ views and understanding of big data, analytics, and related terms.
  • Drivers and inhibitors for analytics solutions.
  • Whether, how and how quickly SMBs’ are transforming their businesses for a data-driven world.
  • Current use of analytics for business decision-making in different departments and across the business.
  • Who creates and who consumes analytics?
  • What are they using it for and how do they consume it?
  • What are SMBs’ appetite, readiness and budget to adopt more advanced solutions than what they are using today?
  • What internal expertise do they have available to help with solution selection, implementation, integration, business process, etc.?
  • What do they need external resources for?

What Do You Need Answers To?

all of the infoWe also know that we haven’t thought of all the questions that need answers. So we’d love for you to be one of our survey sponsors, of course, and work with us one-on-one to help further define the questions and scope of this study.

Even if you’re not able to sponsor the study, we’re still very interested in finding out what questions you think we should try to answer in this study. Please take a moment and share your ideas in the comments section. Thank you!

Recent related SMB Analytics and Big Data posts:

Seeing the Light: How SMBs Are Using Data and Insights to Get Ahead

Key Considerations: How SMBs Are Using Data and Insights to Get Ahead

Getting Results: How SMBs are Using Data and Insights to Get Ahead

Is Big Data Relevant for SMBs?

Putting Big Data To Work For SMBs

Charting Your Big Data Journey

How Zoos and Museums Use Big Data to Refresh and Reset Visitor Experience

 

 

How Zoos and Museums Use Big Data to Refresh and Reset Visitor Experience

3-kids_mFor most of us, a trip to the zoo, museum or an aquarium is a fun and interesting way to learn about animals, history, art and other cultural experiences first hand. Behind the scenes, however, these organizations must work hard to create the engaging, interactive experiences that today’s visitors want, and successfully market that experience to the public.

This is especially true today, when these typically not-for-profit venues must compete with an expanding array of theme and amusement parks, live and digital entertainment events and sports attractions. To remain viable and vibrant, zoos and museums must continually fine-tune their vision and exhibits to grow visitor traffic and membership. They need to be creative with concessions, and optimize use of their meeting rooms and cafes.

In this post, I discuss how Point Defiance Zoo & Aquarium and History Colorado Museum are using analytics and big data to better understand what visitors want and to deliver it.

Point Defiance Zoo & Aquarium Refreshes Visitor Engagement and Conservation Initiatives

polar-bear-003_sAt the 100-year old Point Defiance Zoo & Aquarium (PDZA) in the Pacific Northwest, Manager Donna Powell oversees all business, budget and visitor services. The 29-acre combined zoo and aquarium promotes and practices wildlife and ecosystem conservation initiatives, and attracts more than 600,000 visitors a year.

PDZA generates millions of data records daily on attendance, exhibit and event preferences and participation in conservation initiatives—but didn’t have a good way to pull information out of it. As Powell explained, “Staff generated a SQL sales report from our point-of-sale (POS) system each morning but it only gave us turnstile sales and didn’t include online and reseller sales. So staff had to pull this all together manually, which took days.”

“It also couldn’t tell us what customers do while they visit, or what they’re saying about us on social media” adds Powell. “We need to know things like, which exhibits visitors prefer, and what conservation initiatives they’re participating in, what they liked and what they didn’t like.”

Powell knew that PDZA needed to better understand visitor trends and feedback, but had concerns that an analytics solution might be too difficult and/or expensive for an 80-person organization with 2 IT staff to deploy and use. Then she attended a presentation from the Cincinnati Zoo, and learned about the analytics system that they had deployed. “They were using the same POS as we use. They introduced us to BrightStar Partners an analytics solution provider that did their implementation that really understands zoos. The light bulb went on—if they could do it, so could we.”

PDZA went live withIBM Big Data Analytics in 2012. “Everyone immediately made the connection of how they could use this to help. We can strip things out, and see how things relate. Now we can pinpoint how different weather patterns will affect attendance and exhibits, and change scheduling as required. We can also use it for marketing. For example, after analyzing sales data and open rates, we sent a promotion to members whose membership was about expire and offered them a discount if they renewed before the end of the day. We had a 6% buy in on that campaign compared to the typical mail renewal rate of 3%.”

Other benefits Powell points to include:

  • A 700% rise in online ticket sales over the past year, with an expectation that online sales will go up another 25% by the end of this year.
  • The membership team can pull the data they need in minutes instead of waiting days for IT to extract data from the POS system to create a mailing list for campaigns.
  • PDZA also uses social media and analytics to more effectively engage millennial visitors in its conservation initiatives.

Zoo employees now use iPads to access financial, attendance, membership and retail information so they can make decisions anywhere anytime. Looking ahead, PDZA plans to introduce a mobile ticketing solution. In the future, visitors will be able to “check in” at different areas within the zoo, providing zoo managers with more data to better understand which exhibits are most popular and how much time visitors spend at them.

History Colorado Center Resets To Attract a New Target Audience

HistColorado_FrankOomsHistory Colorado Center likes to think of itself as a brand new 134 year-old museum. Founded in 1879, the museum had shared the same block with Colorado’s State Justice Center for more than 40 years. “The location wasn’t ideal, and the museum wasn’t as interactive or engaging as we would have liked,” as COO Kathryn Hill explained. “Most of our visitors were senior citizens and children on obligatory school field trips.”

In 2008, History Colorado had the opportunity to build new, state-of-the art museum–and to bring Colorado’s history alive through storytelling and interpretative exhibits. According to Hill, “We wanted to understand how we could bring history alive, attract more families, and best sustain our mission over time.”

In conjunction with planning and construction of the new building, History Colorado conducted extensive audience research to test design ideas and stories. During this process, Hill “stumbled on the story of how the Cincinnati Zoo was using analytics to drill down into all aspects of visitor behavior so they could continually improve the visitor experience.”

“As a non-profit, we don’t have a lot of money for marketing, so we needed to find a strategic way to keep a close pulse on how we can best engage families. We hadn’t budgeted for analytics, but once we learned about IBM’s BIg Data Analytics, it was a no-brainer for us,” according to Hill.

In collaboration with IBM Business partner BrightStar, History Colorado deployed IBM Big Data analytics simultaneously with their new POS system. “I’m not a tech person, but I can go in and look at admissions, programs, merchandise, food, and membership data in real-time,” notes Hill. “We have a single view of the data, and can see patterns now, such as when retail sales peak and what exhibits attract the most traffic.” This helps the Center’s 125 employees fine-tune exhibit and marketing strategies.

The museum is also developing more personalized experiences for its visitors by analyzing social media commentary, and expects that this will boost engagement and repeat visits.

“We have a unique mission to help visitors understand the present in the context of the past so Coloradans are better informed in making decisions for the future,” explains Hill. “To make this happen, we need to bring people in and provide a compelling experience. Analytics helps us do this.”

Perspective

Chances are that your organization isn’t a zoo or museum. But these stories underscore the fact that big data analytics solutions are within reach for organizations of all shapes and sizes.

However, these experiences also reveal some important pointers for getting successful outcomes from an analytics investment that other SMBs should keep in mind. First and foremost, PDZA and History Colorado had clearly articulated what information they needed, and how they would use it. In addition, both organizations:

  • Selected a solutions designed for SMB requirements and for limited IT and budgets.
  • Worked with a partner that had experience in your industry, and could tailor the solution to best meet their specific needs.
  • Had input and guidance from organizations with similar requirements.

Whether you need to know more about visitors or customers, exhibits or products, with a clear vision, solid planning, big data analytics can provide the insights your organization needs to thrive in an increasingly complex and competitive world.

This is a fourth, additional post in the blog series by SMB Group and sponsored by IBM that examines big data and its implications for SMBs. You can find the first three posts at these links:

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