Big data, AI, ChatGPT... Data has become essential in SMEs too.
Since the massive influx of data into society at the turn of the 2010s, large companies have embraced digital technologies. A decade later, big data, the cloud, and artificial intelligence (AI) also play a major role in the activities of small and medium-sized enterprises (SMEs). The France Num 2023 barometer shows that around 80% of managers of organizations with fewer than 250 employees consider digital technology to be a real benefit.
Théo Justy, University of Montpellier; Denis Lescop, Montpellier Business School; Estelle Pellegrin-Boucher, University of Montpellier and Julien Granata, Montpellier Business School
Our latest research article, published in the journal Technovation, demonstrates in particular a sharp acceleration in the adoption of data analysis software. These data analysis tools are even appearing in sectors that are not traditionally tech-savvy. For example, in the book Wine Management and Marketing 2 (ISTE Group), we identified strategic uses in the wine industry. Some SMEs started out using Excel before investing in tools such as SQL Server, Amazon Redshift, or BigQuery to store and organize their data as its volume increased.
For analysis, many choose Power BI, which provides interactive dashboards with curves that change in real time. This software facilitates financial reporting, improves predictions of future trends, and helps managers make decisions.
Other SMEs use Google Analytics to improve their customer knowledge, analyze their website performance, set up their SEO strategy, or design targeted marketing communications. They collect more data on their customers' usage and develop innovative digital services to meet new needs.
When ChatGPT dethrones Google
More recently, ChatGPT has burst onto the scene in SMEs. Developed by OpenAI, this virtual assistant has spread rapidly across many professions since its launch in late 2022. Our ongoing research reveals that, in some SMEs, ChatGPT has overtaken the most popular browsers such as Google for queries such as "what are the best practices for successful Instagram posts?" or "what legal measures must an SME's e-commerce site comply with to be GDPR (European data protection directive) compliant?"
In some SMEs, employees use ChatGPT to create content. For example, a sales director generates sales proposals for prospects or responses to calls for tenders. A marketing director uses it to write posts for her blog or social media. With AI, employees reduce their workload by optimizing idea generation and text writing, at a lower cost.
ChatGPT is also capable of solving technical problems. In SMEs specializing in software publishing, some programmers ask it, for example, to detect errors in their lines of code and provide a solution so that their program works correctly. In another company, an administrative and financial director regularly asks it accounting questions.
New challenges
However, for now, these are more individual initiatives than a collective awareness. In fact, ChatGPT remains taboo in some small businesses because its use can be perceived as a way of deceiving the employer by having the AI do their work. Its use also raises fundamental questions about value creation in certain professions where tasks can now be entrusted to machines. Nevertheless, AI is proving to be strategic in performing daily tasks and freeing up "time," the most valuable resource for innovation and creating added value.
However, adopting these data analysis tools poses significant challenges for SMEs: concerns about data security and confidentiality, ethical considerations, the need for qualified personnel to manage and interpret the data, etc.
In addition, the France Num 2023 barometer reveals that half of executives doubt the return on investment in digital technologies. The fear of missing out on a technological innovation adopted by competitors can sometimes be a possible motivation.
This phenomenon reveals that adopting these new tools comes with a learning curve. SMEs must therefore invest in employee training and education to ensure they have the skills to exploit the full potential of data analysis.
Théo Justy, PhD student, Teaching and Research Assistant, Big Data Analytics and SMEs, Montpellier Management, University of Montpellier; Denis Lescop, Professor of Strategy and Digital Transformation, Montpellier Business School; Estelle Pellegrin-Boucher, Senior Lecturer in Management Sciences at the Montpellier Management Institute, University of Montpellier and Julien Granata, Professor at Montpellier Business School – Head of the MIND Chair, Montpellier Business School
This article is republished from The Conversation under a Creative Commons license. Readthe original article.