How data empowers SMBs to keep dough on the go

There may be a misconception that using data to either inform or implement business strategy is something only large companies are able to do effectively. While this may have been the case in the past, when big data required a lot of inhouse capacity and architecture, it simply isn't the case now.  

The evolution of cloud computing has democratized the power of data for everyone and every type of business. This means that those Small and Mid-sized Businesses (SMBs) who grasp this opportunity to first capture and then analyze their data can both enhance their business resilience and gain a competitive advantage. 

Recent research, shows nearly two-thirds (65%) of SMB decision-makers say that their post-COVID-19 recovery strategy is being informed by the data they have stored about their business. However, when we localize this to Central and Eastern Europe (CEE) the picture changes.  

As McKinsey’s Digital Challengers report highlights, when it comes to the use of big data, SMBs in CEE lag far behind their European counterparts. Given SMBs’ key role to the CEE and broader European economy, making up some 99% of all EU business, this is a huge opportunity for organizations to enhance their product offerings and operational efficiencies.  

And indeed, we are seeing some excellent examples of SMBs in the region who use their data to enhance their business practices. One fascinating example of this is the restaurant and fast-food business. With various lockdowns over the past eighteen months closing food outlets, this sector has had to be incredibly innovative, agile and efficient. Data proved to be the key new ingredient to their recipe to stay in business and even grow.  

Increasing efficiency and sustainability through the cloud 

Keeping teams motivated is a challenge faced across industries, but especially for fast moving consumer goods businesses in such an unpredictable and challenging period as this. As demand for a product rises, the pressure on each employee to increase productivity becomes more intense. Over time this can impact performance.  

For example, in the Czech Republic everyone knows about Crocodille baguettes; today 35 million of them are sold in the country each year. The growing demand on staff was impacting assembly standards. Some baguettes that reached the end of the production line needed to be rebuilt or thrown away, increasing the cost of production and level of stress for people. 

To overcome this challenge, Crocodille incorporated the Plantyst internet of things (IoT) Gateway solution, which helps its teams to produce baguettes in a more efficient and reliable way. The tool monitors production lines using special optical sensors, continuously sending the data captured to the cloud for processing. This data is then visualized in real-time through screens on the production line to give assembly staff the information needed to ensure the right quantity and types of baguette are filled. This helps them to manage and meet the shift plan. The data is also packaged into daily reports that help management make better decisions on future shift planning and process optimization. 

By harnessing its data, Crocodille is gaining a clearer understanding of production. If customer demand for Salami baguettes has been fulfilled, the solution will inform staff of this so they can switch to say, chicken baguettes instead. Having a more tangible understanding of performance and success is also motivating staff to take greater ownership of their roles, with many making suggestions for how processes could be further improved.  

Through these increased efficiencies, Crocodille has reduced production waste from 3.2% to 1% making the operation both more cost efficient, and sustainable. Staff are also directly seeing the benefits, as Crocodille is passing on the profit made by the added efficiency to staff, boosting salaries by 10-15%. 

Source: Microsoft 

Overcoming growing pains 

In addition to increasing efficiency, engagement and sustainability, we are also seeing SMBs in CEE capture and use their data, powered by cloud, to support rapid growth. As small and mid-sized companies scale, having a strong grasp of operational intricacies can be as important to business success as understanding customers and their requirements.  

One food outlet using its data to avoid being a victim of its own success is Russia’s largest pizza franchise and one of Europe’s fastest growing restaurant businesses, Dodo Pizza (part of Dodo Brands). As Dodo opened more outlets, it needed to find a better system to ensure its franchises stayed profitable, highly efficient, and agile, enabling kitchen and delivery staff to continue providing standout customer experience. 

To achieve this, Dodo looked to better understand its operational data, turning to an Azure cloud solution that provided the company with a ‘one-stop-shop’ to join, slice and dice, monitor, and run queries on the operational information it gathers from its 700+ outlets. 

The solution enables Dodo to ingest significant amounts of data fast and automatically, meaning little staff time is needed to operate the solution, further protecting the company’s bottom line. Moreover, the simplicity of the solution is enabling Dodo’s digital team to develop new types of software to help the business build better relationships with customers. 

All in, Dodo estimates the choice to invest in better understanding its data is saving the business more than US$6,000 a month. Most importantly, Dodo has the insights it needs to ensure it continues delivering great pizza and customer service as it opens more outlets. 

Just like larger businesses, SMBs sit on a huge amount of data. Cloud solutions can be the key to unlocking this treasure chest of information, turning data into actionable insights that enable growth or support rapid scaling for CEE small and mid-sized businesses. Which is exactly what the region needs to advance as a digital hotspot, recover and reimagine its journey towards growth.