SMEs are using data analytics to accelerate their growth
By Puja Sharma
The use of data analytics provides a wide range of opportunities for SMEs, such as a better understanding of the internal production process, of the needs of clients and partners, and the overall characteristics of national and local markets through the tools of market Analysis”. Data analytics help gain insights from large data sources analysis and reporting, thus allowing for better communication.
Data analytics in manufacturing SMEs: When the local butcher competes with the big supermarket chain: The huge volumes of data collected today are being galvanised to help SMEs to jump into digital transformation; Lack of awareness and skills, lack of finance and specialists, unavailability of data, lack of tailored solutions, etc. The list of barriers to digital implementation can be long, especially for SMEs. On the other hand, advantages such as enhancing competitiveness in local or global markets can take an SME on the extraordinary journey of digital transformation.
What are data analytics?
According to the 2019 OECD report, data analytics includes a set of techniques and tools to extract and analyse information from highly unstructured data that is difficult to interpret: “Data analytics help gain insights from large data sources analysis and reporting (e.g. easily understandable dashboards and visualisations), thus allowing for better communication of the information and providing a basis for data-driven decision-making”.
Collecting and analysing data to improve business is something that DIH-World innovation did through its pilot experiment “Cybersecurity and Big Data based solution for the customer-centered design of wines”. The goal was for the supported SME, Bodegas Monje, to produce and offer wine that was customised as much as possible to the customers’ expectations. The implementation of an IT Network, a cybersecurity platform, and a Big Data customer-centered solution has helped the SMEs to analyse their visitors’ behaviour and understand their opinions, aggregate big data as they need, and structure and restructure market segments.
The DIH-World innovation action (launched on 1st July 2020) aims to accelerate the development and consolidation of Digital Innovation Hubs and to improve the digitalisation of European SMEs. The project will last for three years, it has a budget of 8 million euros and 41 partners in 26 countries. The DIH-World project is supporting European SMEs in their development of sustainable competitive advantages and in reaching global markets.
Making sense of the data to improve business
The subsequent impact on the business can be measured in different moments throughout the value chain: “The use of data analytics provides a wide range of opportunities for SMEs, such as better understanding of the internal production process, of the needs of clients and partners, and the overall characteristics of national and local markets through the tools of market Analysis” (OECD, 2019).
For the data to become useful, the gathered information about the customer, competitor, and supplier must be accurate. For SMEs the process of using data analytics could follow the steps below:
- Identify and describe your business needs
- Assess your current data
- Identify sources of data
- Find potential analytical methods and models
- Test ideas and models
- Implement the solution
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