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Henning von Kielpinski, consultant at Consol, a German consulting and software company with offices in five countries, discusses exploding demand for big data capability by small and medium-sized enterprises (SMEs).

SMEs and big data: What is your first reaction?
Big data is something that has drawn the attention of quite a number of SMEs. Most are still in the first phase of research. They want to understand what big data is and what can be achieved with it. This approach applies both to companies that consider using big data as well as companies – like providers – thinking about facilitating big data.

When talking about big data I often notice something interesting; many SMEs admit they did not correctly understand the cloud or even simply ignored it. In the end, they had to run to catch that train and never want to have that same experience again. This partly explains the current interest level in big data.

Does the average SME know what big data is?
Good question and the answer is: it depends. Sometimes you have to explain that big data is not software or a pile of hardware, but rather a concept. Most SMEs spontaneously associate big data with flexibility. That’s interesting, because if you look closely you see that for SMEs, even without any deeper knowledge, cloud and big data are naturally linked.

The average SME has a good business relationship with its provider, which in most cases is a SME as well. Is that a good starting point to facilitate big data?
Trust really is a precondition to do business, nothing will change that. Sounds easy, but it is very important. Now for big data, one should ask: what can a mid-sized or small provider offer related to big data? The answer is probably less that he initially realizes. Big data is not a specific hardware or software. It’s much more about knowledge and support.

Providers that offer managed services have an advantage over their fellow competitors that rely heavily on low entry shared hosting.

What else should the SME focused provider understand?
I often describe big data as a concept with many themes. You need knowledge about a wide variety of issues, particularly a solid knowledge of the business of your customer. To get the good business options out of the relationship, this type of knowledge of your customer is a necessity. Most providers will realize that they are too small and too busy for that. As a result, it’s very hard for them to decide which parts of their existing business can play a role for big data. The lack of sufficient knowledge is a real hurdle for SME big data implementations, especially since they don’t have the budgets that large enterprises do have to buy the necessary help.

Are special big data consultants needed?
My guess is that big data will definitely trigger SMEs to start working with consultants. For most mid-sized providers working with consultants that close to their core business is new. It’s not the same as working with partners or resellers. However, I’m convinced working with both groups will be the new normal in the near future.

So big data has impact on the way a provider runs his business?
Exactly. Cloud led to new roles in companies and big data will have an appreciable effect as well. Existing processes, from both customers and suppliers, will be questioned and providers will be part of that discussion. The provider will need to invest heavily in new ways of working, new competencies, etc., as inaction is not an option.

It sounds quite abstract. Are there any concrete big data SME cases?
There sure will be, but what I mostly see is SMEs still searching and discussing concepts. There are still companies where big data is considered to be the same as robotics or artificial intelligence. That is totally wrong. Big data is however, a prerequisite for IoT and Industry 4.0. In what form is yet to be decided. But one thing is certain: most SMEs and most providers I know, are well aware that they can not afford to miss this train and are therefore willing to talk about possible opportunities.

What is your advice for providers?
Your role as a supplier in the changing value chain, which includes the use of big data, needs to be understood. Look for ways to gather and share knowledge and prepare your organization for a much more intensive form of collaboration and partnering with third parties. That’s a good starting point.

This article was originally published on www.mspmentor.com and can be viewed in full

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