Working smarter and better: How can SMEs use Data & AI?

This article is based on an episode of the podcast Data Dates, in which Edwin and Els of JADS talk with Jules Kuipers and Virgil Sowirono of the JADS SME Datalab.

Data and AI: opportunities for SMEs

Data and artificial intelligence (AI) are playing an ever-increasing role in our society. For many large companies, data-driven decisions are now the norm, but within small and medium-sized enterprises (SMEs), the step to adopting data and AI often remains a challenge; they don’t know where to start and don’t have the time, expertise, or money available to get started.The JADS SME Datalab offers a solution here: a low-threshold way for entrepreneurs to leverage data, with the help of students gaining hands-on experience. Their mission: to make data science and AI accessible to any company; small or large.

What is the SME Datalab?

The SME Datalab was founded in 2018 to help entrepreneurs use data and AI. “It was actually founded because entrepreneurs in the region asked, ‘I have data, is there anything you can do for me?’” explains Virgil. “We saw a niche in the market: nobody was doing this yet. You could hire a consultant, of course, but that’s often very expensive. At the same time, students want practical experience, and entry-level positions require years of experience.” The SME Datalab brings these two worlds together by deploying students as “student consultants” on actual data projects within SMEs.

From bakery to manufacturing: data solutions for every entrepreneur

The SME Datalab works with companies from a variety of sectors. “We always say: anything from a language institute to a bakery around the corner, no request is beyond us,” said Jules. A good example is a collaboration with Bakery Royal. “We investigated whether there was an impact of weather on sandwich sales. And yes, we really saw a pattern: up to and including 23°C, sales increased, but after that it decreased significantly. People prefer to go swimming in nice weather rather than going to the city center.” These insights allowed the bakery to optimize its staff planning and production, reducing waste and costs.

So how does a process at the SME Datalab work?

Entrepreneurs can approach the SME Datalab with no obligation, regardless of whether they have a concrete data question or are still exploring. “Sometimes entrepreneurs have a very concrete question, other times they are still exploratory and say, ‘AI, what do I do with that?’” explains Virgil. The approach involves short, manageable sprints of up to 80 hours, in which a student investigates a specific question. “We try to chop up the issue into small pieces. Students are extremely diligent and want to do everything, but it has to deliver value,” Virgil said. Thanks to the guidance of experienced data scientists, SME Datalab guarantees that a project will generate valuable insights.

AI and data science: hype or necessity?

With the rise of AI, interest from SMEs is also growing. Still, there is a big difference in adoption: “60% of companies with more than 500 employees use AI, but among SMEs the percentage is still only 18%,” said Jules (source). This disparity is partly due to a lack of knowledge and resources. The SME Datalab responds to this by organizing inspiration sessions where entrepreneurs learn what AI can do for them.

The role of students: fresh perspective and innovative solutions

Students at JADS have a unique combination of technical and business knowledge. “They are technically very strong, but also socially and business savvy. We call them ‘data translators,’” says Virgil. Students take a fresh look at business processes and bring the latest knowledge. “They are not yet stuck in a company’s work processes and can therefore think out-of-the-box,” adds Jules. Entrepreneurs benefit from this, without having to pay high consultancy fees.

Getting started with data and AI? Start with the basics!

For companies looking to get started with data and AI, the SME Datalab emphasizes that a solid foundation is crucial. “Don’t start by implementing the latest language model,” warns Jules. “You have to first consider: where is my data stored? How complete is it? What do I want to achieve with it? Because if you use bad data, you will also get bad results.” By working incrementally and starting small, entrepreneurs can extract value from their data without getting overwhelmed by the latest AI hypes.

Want to get started with data?

Want to hear more about how data and AI can transform SMEs? Then listen to the full episode of Data Dates (note: Podcast is in Dutch) about the SME Datalab. You can listen to the podcast through the usual channels!