What is Entrepreneurship?
Entrepreneurship has traditionally been defined as the process of designing, launching and running a new business, such as a startup company, offering a product, process or service for sale or hire. An entrepreneur with positive biases in their perception & pro-risk-taking attitude makes them more likely to exploit the opportunity.
Importance of Technology
In today’s world technology is in full swing, the decision-making tools & techniques are very different from past practices. Technology is embedded in almost every aspect of life, all you need is to light your hair on fire to get initial prototypes out to market as quickly as possible. Speed is everything to serve a customer a close second. Few startups in a very small period rocketed to success faster, and the only reason behind is they transformed the way- the way of doing business using tools BIG Data Analytics, IOT (internet of things), automation, artificial intelligence (robotics, sensor technology, simulation software), social media banks, E-learning E-land E-Health, etc. are key to growth & innovation. Modern techniques & tools become the talk of the town nowadays; this technological shift put the loudest ding in the world & alarming for all the professionals.
According to the latest research of Clipsal by Schneider, 50 Billion objects are expected to be connected to the internet by 2020.
Considering technological pace, it seems to be rightly said:
“A future period during the pace of technological change will be so rapid. Its impact so deep, that human life will be irreversibly transformed”.
The technological aspect of the startups is now becoming crucial for a management accountant to be fully aware of to get the best results out of it. Here we would like to give a birds-eye view of how entrepreneur uses BIG data concepts & techniques for successful startups as business solutions.
Need to understand customer’s problem, provide them with solutions that added value:
First & the most important question that arises is how we can find out the best value-added solution for them? The only answer is to find out right patterns, develop personas that itself speaks as “face of the customer,” identify, prioritize the data source about the targeted customers after getting the deep result insights from BIG data Analytics. BIG Data conceptually allows entrepreneurs the freedom to take a data-driven decision. Three main characteristics entrepreneurs seek in a big data solution:
- Flexibility & choices (predictive analytics that is everything a customer needs in one pre-integrated package)
- Simplicity (self-service capability of the system)
- Cost & pricing
Example: Many companies get access to paid information of clientele buying pattern details to make smart decisions. The British grocery store chain “Tesco” after using data warehousing, data mining & neural networks techniques get to know surprising results of buying patterns & decided to place beer next to disposable nappies (diapers).
The Grocers: The Rise and Rise of the Supermarket Chains-By Andrew Seth, Geoffrey Randall
Data mining that looks for patterns in data & tests a very large number of possible correlations; BI methodology creates multi-dimensional data structure & examines it looking for meaningful patterns. Walmart is another best example. They simply combined their point of sale data with the loyalty card system & get demographics data about their customers. It helps them to know answers of three W’s of customer buying patterns of a particular product.
Here I would like to quote important aspects of appraisal methods that nowadays most decision-making techniques shift. For example Balance scorecard, non-financial perspective seems to be more relevant, attractive & profitable to increase market share & customers chunk (pocket share) as compared to financial perspective.
How technology is changing business faster than ever before
Understand the ways to fit in your product in customer’s environment using technology:
Companies have to invest a lot in the technological environment because they consider data, analytics, and dashboard tools as strategic organizational assets. All depends upon the answer on how your solution leverages (Business Intelligence & data warehousing rocks!), and extends to targeted customers. Ninety percent of the world’s data is generated in just last two years & expected to grow 60-80% in next year, here is the snapshot of one-minute data created is as follows:
- 2,000,000 Google Searches
- 685,000 Facebook updates
- 200 Million sent emails
- 48 hours’ worth of videos uploaded to YouTube
Data analytics simply improves and enhances the decision-making process in:
- Research & development
- Understand when & why a customer leaves
- Understand customer needs & analyze their social behavior
- Risk management
Few successful startup stories using particular structured & unstructured data pattern of clients worked on the supply side of the products then gradually shifted to the demand side, these winning strategies are Uber, Etsy & Airbnb.
Cloud technologies- free, scalable & get products to market:
Cloud technology is 100 times faster in-memory analysis and applications, and it allows organizations to develop & get products to market as quick as possible. An entrepreneur should always stand out with some unique & differentiation concept in their products. Keep on testing & experiment your product to get the customers perspective (the way they use your product & satisfied). Try to be the initiator after extensive research & gather details about how customers are trying to use your product.
An entrepreneur needs to monetize their assets, develop an initial ROI & try to drive that ROI by compelling customers to use, try & buy their product.
Why is Technology important?