MSMEs not only play a crucial role in creating large employment opportunities at a lower capital cost than large industries, but they also aid in industrialization of rural & remote areas, thereby, reducing regional imbalances and ensuring a more equitable distribution of national income and wealth. Across the world, MSMEs are considered as an economic process method that promotes development.

A big business starts small – this quote by billionaire Richard Branson shows that today's large business houses were once upon MSMEs.

 John Chambers of CISCO says  " At least 40% of all business will die in the next 10 years , if they don't figure out how to change their entire company to accommodate new technologies" .

In today's information and knowledge age, all businesses must not only have a growth mindset, but also be agile enough to adopt digital transformation of their own systems and processes. The data generated during routine operations is a critical component of any business's digital transformation.

 Data modernization is one such technology driving change and transforming the way data is managed and accessed.  Data modernisation refers to the process of moving siloed data from traditional databases structures to modern databases. It opens limitless possibilities and endows enterprises with cost-saving benefits along with greater scope to employ artificial intelligence (AI), machine learning (ML) and analytics algorithms.

With digital disruption advances, MSMEs can embrace the adoption of new technology and groom the talent to embrace the digitization. To simplify the role of data modernisation in MSMEs, we follow up with four major trends.

1.Cloud systems are replacing traditional data storage systems:- As businesses evolve, data multiplies on a daily basis, and business owners must consider alternative arrangements to store large amounts of data outside of traditional storage. Cloud storage provides greater scalability at a lower cost. Businesses are shifting to public and hybrid cloud because of the technical and economic benefits. With the cloud becoming a more viable option for businesses, data modernization is unavoidable.

2.Data generation through multiple sources:- Businesses today use IoT (internet of things) and smart devices, as well as social media handles, to generate critical data. Data is coming in from everywhere, with non-database sources accounting for a sizable portion of it. For business analysis, data from various sources must be compiled. It is now more important than ever to create optimal data experiences with actionable insights, and data modernization efficiently resolves complex processing requirements of large datasets. MSME must evaluate and audit their data generation sources in order to validate the data's authenticity for creating proactive business strategies.

3.Challenges of shared language and single source of truth across verticals: The exponential growth in data generation from various sources has presented businesses with as many challenges as it has opportunities. Today, teams across industries rely heavily on data to make better decisions, and there is a growing need for a common language. For enterprise-wide decision support, data modernization is the way forward. It is essential for organizations to have consistent, uniform access to data across departments with self-service analytics capabilities that will also enable non-technical members to make sense of complex data and pull-out valuable information effortlessly from a single place in order to make better decisions across various verticals.

4.Advanced analytics, ML and AI technologies are gaining prominence: AI and ML are gaining more prominence as they facilitate faster optimization of business processes. The adoption of advanced analytics and AI and ML systems mandate data modernisation as traditional systems aren't equipped with data automation capabilities. Any businesses wanting to leverage AI and ML systems to their advantage can do so with the aid of data modernisation. For example, AI and ML systems can be used in customer support when combined with data modernization, such as a data lake strategy.

As previously stated, data is the new fuel for businesses to run on. The key trends discussed here are paving the way for data modernization, as businesses innovate to stay relevant in changing times. Data modernization is a critical digital transformation trend that is reshaping how businesses will operate in the future. The democratization of data is taking center stage, and it should come as no surprise that businesses are shifting their focus to data modernization for survival as well as for competitive advantage.

For MSMEs, selecting the right partners and service providers for data modernization is the key. There are many organizations who can help in data modernisation for critical applications for businesses. In the end I would like to conclude with a quote of Jeff Bezos "I believe you have to be willing to be misunderstood, if you are going to innovate''.

Author:

Alok Bhatt, Head of Business Transformation Services, Analytix Solutions