Big data, AI, ChatGPT… Data has become indispensable even for small and medium-sized businesses
As soon as data began flooding into society at the turn of the 2010s, large companies embraced digital technologies. A decade later, big data, the cloud, and artificial intelligence (AI) have also become integral to the operations of small and medium-sized enterprises (SMEs). The France Num 2023 Barometer shows that approximately 80% of executives at organizations with fewer than 250 employees believe that digital technology offers real benefits.
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, specifically demonstrates a sharp acceleration in the adoption of data analytics software. These data analytics tools are even appearing in sectors that are traditionally not tech-savvy. For example, we identified, in the book Wine Management and Marketing 2 (ISTE Group), strategic uses within the wine industry. Some SMEs had started by 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 charts that update in real time. This software simplifies financial reporting, improves forecasts of future trends, and helps executives make decisions.
Other small and medium-sized businesses use Google Analytics to gain a better understanding of their customers, analyze their website’s performance, refine their SEO strategy, or design targeted marketing campaigns. They collect more data on customer behavior and develop innovative digital services to meet new needs.
When ChatGPT Dethrones Google
More recently, ChatGPT has made a big splash in the SME sector. Developed by OpenAI, this virtual assistant has gained widespread adoption across many industries since its launch in late 2022. Our ongoing research reveals that, in some SMEs, ChatGPT has surpassed the most popular search engines like Google for queries such as “what are the best practices for a successful Instagram post?” or “what legal requirements must an SME’s e-commerce site meet to comply with the GDPR (European General Data Protection Regulation)?”
In some small and medium-sized businesses, employees use ChatGPT to create content. For example, a sales manager uses it to generate sales proposals for prospects or responses to requests for proposals. A marketing director uses it to write blog posts or social media content. With AI, employees reduce their workload by streamlining the process of generating ideas and writing content, all at a lower cost.
ChatGPT is also capable of solving technical problems. At small and medium-sized businesses specializing in software development, some programmers ask it, for example, to identify errors in their code and provide a solution so that their program works properly. At another company, a chief financial officer regularly asks it accounting-related questions.
New challenges
However, for now, these are more individual initiatives than a collective awareness. In fact, ChatGPT remains a taboo in some small businesses because its use can be perceived as a way to deceive 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. AI is nevertheless proving strategic by performing daily tasks and freeing up “time,” the most valuable resource for innovation and creating added value.
However, the adoption of these data analytics tools presents significant challenges for SMEs: concerns about data security and privacy, ethical considerations, the need for qualified personnel to manage and interpret the data, and so on.
In addition, the France Num 2023 survey reveals that half of business leaders are skeptical about the return on investment in digital technologies. The fear of missing out on a technological innovation adopted by competitors can sometimes serve as a potential motivator.
This phenomenon shows that adopting these new tools involves a learning curve. SMEs must therefore invest in employee training and education to ensure they have the skills needed to fully leverage the potential of data analysis.
Théo Justy, Ph.D. candidate, 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, Associate Professor of Management Sciences at the Montpellier Management Institute, University of Montpellier and Julien Granata, Professor at Montpellier Business School – Head of Research Area at the MIND Chair, Montpellier Business School
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