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A New Era of Opportunities for Nepal

In today’s world, data is increasingly being compared to oil – a valuable resource that can transform economies and societies. Like oil, data must be “mined” (collected), “processed” (analyzed), and used wisely to extract maximum benefit. However, unlike exhaustible resources, data is a renewable and ever-growing asset. For Nepal, a country actively seeking new avenues for economic growth and overcoming the challenges of geography and limited traditional resources, the metaphor of “data is the new oil” is especially relevant.¹

Nepal’s economy has traditionally relied on agriculture and remittances from migrant workers. The agricultural sector employs approximately 65% of the population and contributes significantly to GDP (around 24-31%).¹However, this sector is characterized by low productivity and the prevalence of traditional farming methods.⁵Remittances, which constitute a significant share of GDP (e.g. 21-25% of GDP⁸), create a certain economic stability, but also carry the risks of the so-called “Dutch disease” – excessive dependence on one source of income, which can negatively affect the development of other sectors.⁸Nepal’s economic growth forecasts vary: World Bank sees 4.5% in FY25¹³, Asian Development Bank (ADB) – 4.4% in FY25¹⁵, International Monetary Fund (IMF) – 4.0% for 2025¹⁷, while the Government of Nepal posted 4.61% in FY24/25.¹⁸These figures point to potential, but also to the urgent need to find new, sustainable growth drivers. Structural problems such as low labor productivity, weak competition in logistics, infrastructure shortages and the ongoing “brain drain”¹⁹, require innovative approaches, and this is where data and business analytics can play a key role.

Business intelligence (BI) is the process of collecting, processing, and analyzing data to make better and more effective business decisions. For Nepalese companies, BI offers the prospect of improving operational efficiency, gaining a deeper understanding of customer needs, streamlining processes, and identifying new growth opportunities in an increasingly competitive environment.

Nepal’s economy is at a crossroads. Traditional growth engines face serious challenges, while new promising sectors such as tourism²¹and hydropower²³, require modern approaches to fully realize their potential. Agriculture, being the backbone of the economy, suffers from low productivity.⁶Large volumes of remittances, while supporting the economy, create dependency and risks associated with the “Dutch disease”.⁸In these conditions, data and analytics can become the tool that will help optimize all sectors of the economy, increase their productivity and competitiveness.

However, Nepal faces a major obstacle to turning data into its “new oil” – the brain drain and shortage of skilled workers, especially in the fields of information technology and data analytics.²⁵The country desperately needs data scientists to develop, but is losing them due to the lack of sufficient attractive opportunities in the domestic market. This paradox could undermine efforts to build the technology infrastructure if the problem of developing and retaining local talent is not addressed. Thus, harnessing the potential of data is not only a technology challenge but also a people strategy challenge for Nepal.

Understanding the Value of Data in Nepalese Business

From Intuition to Insights: Why Traditional Approaches No Longer Work

Traditionally, decision-making in Nepalese businesses has been heavily influenced by cultural factors. The hierarchical structure of many organizations, where key decisions are often made at the highest levels of management, can slow down processes and limit the use of information from lower levels.²⁸Informal networks and personal connections known as “afno manche” (insiders) play a significant role, as do the practices of “kripabad” (favoritism) and “natabad” (nepotism).³⁰These approaches, based on personal relationships rather than objective data analysis, can lead to suboptimal decisions and hinder the development of meritocracy in business. Although building trusting personal relationships remains an important aspect of Nepalese business culture²⁸, over-reliance on them at the expense of data analysis is becoming increasingly risky in a rapidly changing world.

In today’s economy, characterized by increasing competition, globalization and rapidly changing market conditions,³², intuition and traditional decision-making methods prove insufficient. Behavioural biases such as overconfidence or anchoring, which investors and managers in Nepal are subject to, can also negatively influence decisions if they are not supported by objective data.⁴³In addition, companies face the need to adapt to the ever-changing expectations of customers who are becoming more informed and demanding.⁴⁵

Data as a Strategic Asset: Examples from Nepal

Despite the challenges, some Nepalese companies are already beginning to realise the value of data and use it as a strategic asset.

Bhat-Bhateni Supermarket, one of Nepal’s leading retail chains, demonstrates its understanding of the importance of customer data. A customer satisfaction survey found that 70% of respondents felt that Bhat-Bhateni effectively understood their service needs.⁴⁷This demonstrates the systematic collection and analysis of customer data. The key factors for the chain’s success are a deep understanding of customer needs, effective quality management (45.8% of respondents rated it as good) and staff responsiveness (41.7% positive ratings).⁴⁷As a result, 61.7% of customers are willing to recommend the store, which is directly related to a positive experience based on data analysis and subsequent service improvement.⁴⁷

Nepal, a major e-commerce platform, actively encourages customers to leave product reviews.⁴⁹These reviews serve as a valuable source of data for both other shoppers and the company itself, helping to improve its product range, service quality, and consumer preferences. Daraz also makes effective use of seasonal marketing campaigns, such as the 11.11 Sale, and digital marketing, which involves collecting and analyzing large amounts of data on user behavior on the platform.⁵⁰

Foodmandu, a pioneer in the food delivery market in Nepal, faces mixed reviews from customers.⁵²Complaints about late deliveries and order cancellations indicate that the company is likely collecting data about problems, but the effectiveness of using it to improve service may be variable. This example illustrates how data can reveal weaknesses in business processes and indicate where improvements are needed.

In the agricultural sector, the platform GeoKrishi is a shining example of how data can be used to transform a traditional industry.⁵⁶By providing farmers with access to weather data, market prices and modern farming technologies, GeoKrishi has helped over 51,500 farmers adapt to climate change, with 97% of them having better access to localized weather information.⁵⁶

The importance of Customer Satisfaction Score (CSAT) in Nepal is difficult to overestimate. It is influenced by factors such as product quality, service level, price and cultural sensitivity.⁴⁵CSAT expectations vary significantly by industry, with hospitality and tourism seeing 80-90%, retail seeing 75-85%, and telecom seeing 60-75%.⁴⁵This highlights the need to collect and analyze industry-specific data to meet customer expectations.

Word-of-Mouth Marketing (WOMM)is extremely effective in Nepal due to cultural characteristics such as high trust in personal recommendations and close community ties.⁴⁹Companies can drive WOMM by providing excellent service (the effectiveness of which can be tracked through customer satisfaction data) and actively using digital platforms to collect and display reviews. Successful examples of WOMM include the Bajeko Sekuwa restaurant chain, The Last Resort, and Coca-Cola’s “Mann Kholau Coke Sanga” marketing campaign.⁴⁹

Nepalese cultural characteristics, such as the importance of personal connections and hierarchy, can have a dual impact on data-driven decision making. On the one hand, trust and the power of word of mouth can help spread positive experiences based on quality, data-driven service. Customer Satisfaction Data⁴⁵can help improve service, which in turn will enhance the positive word of mouth that is so valued in Nepalese society.⁴⁹On the other hand, the entrenched hierarchy and practices based on personal connections (“afno manche”³⁰), can lead to ignoring objective data in favor of the opinions of superiors or decisions made based on personal preferences rather than actual indicators.²⁸Successful implementation of business analytics therefore requires not only technical tools, but also cultural adaptation that demonstrates how data can complement, rather than replace, valuable aspects of local business culture.

The effectiveness of business intelligence in Nepal will directly depend on the ability of companies to integrate data into existing powerful influence channels such as word of mouth and social media, which are deeply ingrained in the culture. Word of mouth and social media are extremely influential tools in Nepal.⁴⁹Business analytics can provide valuable insights into what makes customers happy and what marketing messages are most effective.⁴⁵This knowledge can be used to target word of mouth and create more relevant and engaging social media content. For example, by analyzing review data and purchase history, a company can identify its most loyal customers and develop personalized referral programs for them.⁶¹, thereby enhancing the word-of-mouth effect. Business analytics thus becomes not just a tool for internal decision-making, but also a powerful lever for enhancing external marketing activities, which have already proven their effectiveness in the Nepalese context.

The failure to move from intuitive decisions, often based on the “afno manche” system, to decisions supported by objective data can have wider negative consequences, in particular exacerbating the problem of “brain drain”. In Nepal, practices based on personal connections and strict hierarchies in decision-making are widespread.²⁸At the same time, young Nepalese professionals are increasingly receiving training in modern management techniques, including data analysis and business analytics.⁶³If companies do not implement meritocratic systems where promotion and decision-making are based on objective metrics and data, but continue to rely on connections, this will create an unfavorable and demotivating environment for talented young people. This, in turn, can become an additional factor stimulating the “brain drain”²⁵, as professionals will seek opportunities for self-realization in countries and companies where their skills and knowledge are valued and objectively assessed. Thus, the implementation of business analytics is not only a matter of improving operational efficiency, but also an important step towards retaining talent and creating a fairer and more competitive business environment in Nepal.

Navigating the Business Intelligence Landscape in Nepal

Current Status of Digitalization and Data Usage in Nepal

Nepal’s digitalization landscape is rapidly evolving, paving the way for greater use of data in business. At the beginning of 2025, the country’s internet penetration rate reached 55.8%, representing 16.5 million users. While there was a slight decline of 0.2% in the number of internet users over the past year, the number of active mobile connections grew by 5.4%, reaching 39.0 million, equivalent to 132% of the total population.⁵⁹Importantly, 80.5% of these mobile connections are broadband (3G, 4G or 5G), and average fixed internet download speeds increased by 22.7% to 70.94 Mbps.⁵⁹These figures indicate growing, albeit uneven, digital connectivity that forms the basis for data collection and analysis.

Social media plays a significant role in Nepal’s digital life. In January 2025, there were 14.3 million social media users, accounting for 48.1% of the population, growing by 5.6% year-on-year.⁵⁹Facebook remains the dominant platform, accounting for about 93% of the social media market⁶⁰, and its audience in Nepal has grown by 5.6% over the past year.⁵⁹Instagram is also popular, with 3.9 million users.⁵⁹TikTok is rapidly gaining popularity, especially among young people.⁶⁶Social media activity generates a huge amount of user data that can be used for business analytics purposes, including understanding consumer preferences and sentiment.

The e-commerce market in Nepal is showing impressive growth. In 2024, its size was estimated at $888 million, with a projected growth of 20-25% compared to the previous year.⁶⁷Revenue in this sector is expected to grow significantly by 2029, with user penetration reaching 13% in 2025.⁶⁸The largest product category in Nepalese e-commerce is Electronics, accounting for 24% of revenue.⁶⁷Platforms like Daraz and Foodmandu are active in the market, generating large volumes of transactional and consumer behavioral data.⁴⁹WooCommerce is the most popular platform for creating online stores, accounting for 65.51% of all online stores in the country.⁶⁹

The adoption of digital technologies (AgriTech) in agriculture is also gaining momentum. Startups such as GeoKrishi use data to provide farmers with up-to-date information on weather, market prices and modern agrotech.⁷⁰FAO’s Digital Villages Initiative is also piloting digital solutions in agriculture in Nepal, including the Tele Plant Doctor App and the Kisan App.⁷¹This demonstrates the potential for using data even in traditional economic sectors. In addition, there is a growth in digital financial services (FinTech), which is also an important source of valuable data for analysis.⁷³

Key Business Intelligence Tools Available to Nepalese Companies

A number of business intelligence tools are already available to Nepali companies looking to use data to make decisions.

CRM systems (Customer Relationship Management): These systems help companies collect, store and analyse customer data, improve service, personalise marketing and increase loyalty. In Nepal, where personal relationships play an important role in business²⁸, CRM can be an effective tool for managing these relationships.

Zoho CRM: Offered through local partners such as Nest Nepal.⁷⁴Provides customization options and various pricing plans (Standard, Professional, Enterprise, Ultimate) that include task automation, interaction tracking, lead management, and analytics.
Salesforce: A more powerful but more expensive solution is available through international partners such as Codleo Consulting and Globant, who can provide implementation services in Nepal.⁷⁶
Other CRM and local solutions: HubSpot CRM is also on the market (via Set 2 Close⁷⁸) and other international systems. There are also local companies offering CRM consulting, such as Dogma Group, neosoftware, Hyberlab IT Solutions.⁷⁸Infor also offers CRM solutions.⁷⁹

POS systems (Point of Sale): These systems collect data on sales, inventory and customer preferences directly at the point of sale, which is critical for optimizing assortment, pricing and marketing promotions.

For retail: Weblink Nepal offers POS systems with inventory management, smart billing, touch screen and barcode support.⁸⁰FSNepal is also positioned as one of the leading POS solution providers in Kathmandu.⁸¹
For restaurants: Both international (KORONA POS, Toast POS, Aloha, TouchBistro) and possibly local developments are available.⁸¹Prices range from free (e.g. Toast POS, SquareUp) to $59-69+ per month.⁸²ITShop Nepal offers physical POS terminals priced between ₨30,000 and ₨70,000.⁸³

Data Analysis and Visualization Platforms: While specific platforms commonly used in Nepal are not always mentioned in the sources, the general availability of cloud solutions such as Microsoft Power BI, Tableau, and Google Data Studio make them accessible to Nepali companies. Some CRM systems, such as Zoho CRM, include built-in analytics tools.⁷⁴Companies specializing in data analytics in Nepal such as Deerhold Ltd, Fusemachines, Leapfrog Technology⁶³, probably use these or similar platforms.

Social Media and Web Analytics Tools: Standard tools such as Google Analytics, Facebook Insights, Instagram Insights, and TikTok Analytics are available and widely used to track the effectiveness of online presence and analyze user behavior. Digital marketing companies in Nepal (e.g. Gurkha Technology⁶⁶) are likely actively using these and more advanced tools to analyze the performance of their campaigns.

Table 1: Comparison of popular CRM systems for SMEs in Nepal

Sources:⁷⁴

Table 2: Key POS Systems for Retail/Restaurants in Kathmandu

Sources:⁸⁰

Although Nepal is in the relatively early stages of digital transformation, there is already a basic set of tools available, such as CRM systems, POS terminals, and social media analytics. These tools can be used by local companies, especially small and medium enterprises (SMEs), to begin their journey towards data-driven decision making. Growing internet and mobile penetration⁵⁹, as well as the expanding e-commerce market⁶⁷create favorable conditions. Availability of both international and some local solutions for CRM and POS⁷⁴This means that the technological barrier to starting to work with data is not as high as it might seem at first glance.

Rapid growth in mobile broadband (80.5% of mobile connections⁵⁹) and the huge popularity of social networks (48.1% of the population are users⁵⁹) indicate that the most valuable and easily accessible data for Nepalese businesses, especially SMEs, likely lies in the area of mobile and social consumer behavior analysis. Most Nepalese access the internet via mobile devices⁵⁹, and social media, especially Facebook and TikTok, are extremely popular.⁶⁶Data about user behavior across these channels, such as preferences, feedback, and ad interactions, is easily collected using the platforms’ built-in analytics tools. For SMEs that may not have the resources to implement complex CRM or ERP systems, analyzing social media and mobile app data can be a very effective first step to understanding their customers and market. This also means that digital marketing strategies that rely on this data can be particularly effective.⁸⁵

The IT solution provider market in Nepal is fragmented, with many small companies offering web development and mobile apps but fewer large system integrators⁸⁷, could have two effects. On the one hand, it could stimulate competition and increase the availability of basic solutions, such as developing a simple website with analytics enabled. On the other hand, it could create problems with quality, standardization, and integration of more complex BI systems, especially for larger enterprises. There may not be enough local companies with sufficient experience and resources to implement complex BI systems, such as ERP with analytics or complex CRM integrations. This could lead to large companies being forced to rely on foreign suppliers, as in the case of Salesforce⁷⁶, or face significant difficulties in integrating disparate local systems. This problem is exacerbated by the general shortage of qualified IT specialists in the country.²⁰

Overcoming Obstacles to Data-Orientedness

Key Challenges for Implementing Business Intelligence in Nepal

Despite the increasing availability of tools, BI implementation in Nepal faces a number of significant challenges.

Lack of digital skills and awareness is one of the main obstacles. The country has low overall levels of digital literacy, especially in rural areas.88 World Bank and Asian Development Bank reports have repeatedly identified the lack of digital skills as a significant barrier to development.20 Small and medium enterprise (SME) managers are often not sufficiently aware of the benefits of cloud computing and data analytics.89 Similarly, farmers and agribusiness workers lack the skills to effectively use AgriTech solutions.90

Infrastructure limitations also play a significant role. Uneven access to the Internet and its poor quality, especially in rural and mountainous areas, make it difficult to collect and transmit data in real time.⁸⁴While mobile internet penetration is quite high, access to fixed broadband remains limited.⁵⁹Power outages can also negatively impact the operation of digital systems.⁹²In addition, poor logistics infrastructure, including roads and warehouses, makes it difficult to collect supply chain data and implement data-driven decisions.⁹³

Financial constraints for SMEs are another serious barrier. The high cost of implementing new technologies and training staff is often prohibitive for small companies.⁹⁷Limited access to funding for investment in technology solutions also hinders their adoption.⁹⁷

Cultural resistance to change and data trust issues should not be underestimated. Nepalese business still has a strong tradition of making decisions based on intuition or personal connections (“afno manche”).²⁸There are concerns about data security and privacy when using cloud services and CRM systems.⁸⁹Distrust of new technologies or a lack of understanding of their real value can also hinder their adoption.

Finally, lack of standardized data and problems with its quality make effective analysis difficult. Data is often fragmented, incomplete or inaccurate. This requires significant investment in the processes of collecting, cleaning and preparing data for analysis.

Success Stories: How Nepalese Companies Are Already Using Data (Expanded)

Despite these challenges, some Nepalese companies are already demonstrating successful use of data in their operations.

Bhat-Bhateni Supermarket not only collects customer feedback, but also likely uses loyalty card data and shopping cart analysis to personalize offers, optimize inventory, and improve store layouts.⁴⁷High ratings for quality management (45.8%) and staff responsiveness (41.7%)⁴⁷indicate that these metrics are monitored and used for continuous improvement.

Nepal, in addition to collecting reviews, actively uses data on product views, search queries and purchase history to personalize recommendations, conduct targeted advertising campaigns and optimize logistics processes.⁴⁹Their massive marketing campaigns, such as the 11.11 sale, are undoubtedly backed by deep data analysis.⁵⁰

GeoKrishi and other AgriTech platforms, such as Tele Plant Doctor App and Kisan App⁷¹, collect data on weather conditions, soil conditions, market prices and provide farmers with specific recommendations on crop selection, planting timing, fertilizer use and pest control, which directly affects crop yields and farmer income.⁷⁰

Telecom giant Ncell, possessing a huge array of data about its users, probably uses it to segment customers, develop new tariff plans, optimize network performance and conduct targeted marketing campaigns. Ncell App Privacy Policy¹⁰¹confirms the collection of data about service usage, location and contacts, which can potentially be used for deep analytics.

Banking sector Nepal increasingly adopts digital services⁷³, which opens up broad opportunities for analyzing transaction data, studying customer behavior, more accurately assessing credit risks and creating personalized banking products.

Manufacturing companies, such as manufacturers of carpets (e.g. Formation Carpets), clothing (Danfe), tea (Himalayan Tea Exporters) or cement (Sarbottam Cement), can use data to optimize production processes, control product quality¹⁰³, analysis of export markets and identification of consumer preferences in these markets.

The main barriers to BI adoption in Nepal are not so much technological as human and infrastructural. Technologies such as CRM, POS and cloud services are already available in basic form (as discussed in Section 2). However, their effective use requires digital skills among employees, which are often lacking.²⁰, and changing established ways of thinking, overcoming cultural barriers and mistrust of new technologies.²⁸In addition, infrastructure issues related to unstable internet connections and electricity supplies, especially outside major cities, also pose serious obstacles.⁸⁴Therefore, simply providing access to business intelligence tools is not enough; a comprehensive effort is needed to train staff, create a new corporate culture, and improve the underlying infrastructure.

Success stories in data use in Nepal, such as those of Bhat-Bhateni, Daraz and GeoKrishi, often involve either large companies with sufficient resources to invest in technology and personnel, or projects that receive external support, such as GeoKrishi, which is supported by the GSMA Innovation Fund.⁵⁶This observation highlights the difficulty of implementing BI on their own for typical Nepalese SMEs, which face financial constraints, lack of knowledge and infrastructure issues.⁹⁷Such enterprises require targeted support from the government or industry associations, including subsidies, accessible consulting services and educational programs.

The problem of “brain drain”²⁵further exacerbates the shortage of talent capable of handling business analytics. If local companies fail to offer interesting challenges, opportunities for professional development, and competitive working conditions to data scientists, these specialists will continue to leave the country. As a result, companies will be forced to either forgo implementing advanced analytics or bring in expensive foreign consultants, which will further hinder the widespread adoption of data-driven practices in the Nepalese economy. This creates a vicious cycle: a lack of demand for analytical skills domestically leads to an outflow of talent, and the outflow of talent, in turn, limits companies’ ability to implement analytics.

Practical Steps for Leaders: How to Get Started Working with Data

The transition to data-driven decision-making requires Nepalese leaders not only to adopt new technologies, but also to create a corresponding corporate culture, develop employee skills, and wisely select tools.

Creating a data-driven culture

Leadership and commitment to change play a key role. Leaders must lead by example, ask analytical questions, and encourage this practice among their subordinates. It is important to realize that this is not just installing new software, but a fundamental change in the way people think and manage.

Employee training and skills development is the next critical step. Investment must be made in training staff in the basics of collecting, analyzing and interpreting data at all levels of the organization.⁹²Nepal already has training programs to develop “soft skills,” including communication and problem-solving skills, which are an important part of analytical work.¹¹³A culture of continuous learning should be encouraged.¹¹⁸An interesting practice could be “reverse mentoring,” where younger, tech-savvy employees teach older colleagues new digital tools and approaches.¹¹⁸

Overcoming Resistance to Change requires patience and good communication. It is important to explain the benefits of working with data, involve employees in the transformation process, and demonstrate quick wins with specific examples. At the same time, it is necessary to take into account cultural peculiarities, such as the concept of “saving face”²⁸– the changes being implemented should not be perceived as criticism of previous working methods or the incompetence of employees.

Practice “open-book management”, which involves sharing financial and operational information with employees, can go a long way toward creating a data-driven, results-driven culture.¹²⁰When employees understand how their work impacts the overall performance of the company, their engagement and responsibility increase.

Choosing the right tools and technologies

Nepalese companies do not have to invest in expensive and complex systems right away. You can start small, analyzing data from existing sources such as Excel spreadsheets, Google Analytics or data from POS systems. The key is assessment of real business needs: What specific problems need to be solved with data and what data will be required to do so?

The choice of tools should be appropriate to the size of the company, its budget and the level of technical expertise of its employees (see Tables 1 and 2 in Section 2). For SMEs, simple and accessible solutions are often more appropriate.Cloud technologies can help reduce the upfront costs of IT infrastructure by making modern analytics tools more accessible.⁸⁹

choosing the right tools and technologies

Collection, analysis and interpretation of data

The first step is defining key performance indicators (KPI), which are really important for tracking progress and making decisions. It is essential to ensure data quality: their accuracy, completeness and timeliness. At the initial stage, you can use simple methods of analysis, such as descriptive statistics, customer segmentation, or sales trend analysis.

Data visualizationUsing graphs, charts, and dashboards, it helps you better understand the information and present the results of your analysis to others and management in an understandable way. The ultimate goal is to move from simply describing “what happened” to a deep understanding of “why it happened” and, ideally, to predicting “what will happen” in the future.

Ethical aspects of data use and security

When working with data, especially personal data of customers, ethical and security issues must be given primary consideration. Maintaining confidentiality of client data is a mandatory requirement.⁹⁹Companies must ensure transparency in the processes of data collection and use, informing customers about what information is collected and for what purposes.

It is also important to ensure data protection from leaks and unauthorized access, especially when using cloud services and third-party platforms.⁸⁹It is necessary to monitor the development of Nepal’s data protection legislation and promptly bring your practices into compliance with regulatory requirements.

Successful implementation of BI in Nepal requires more than just purchasing software; the key to success is developing “human capital”. This includes training employees and creating a corporate culture that values data as an important resource for decision making. The technology, as shown in Section 2, is generally available. However, using it effectively requires staff to have the appropriate skills.²⁰and willingness to change habitual approaches to work.²⁸Therefore, investments in employee training¹¹⁰and active support from management, possibly with elements of “open management”¹²⁰, become critically important. Without these components, investments in technology solutions may not yield the expected returns.

Successful implementation of business analytics can help Nepalese companies not only improve their internal processes but also significantly increase their competitiveness in export markets. This is especially true for products with high export potential, such as cardamom, tea, ginger, and other agricultural products.¹²²Analysis of data on international markets, consumer preferences and quality standards¹⁰⁵allows you to adapt products and marketing strategies to meet the demands of overseas buyers. For example, data on the growing demand for organic products in the European Union¹²⁷can help Nepalese tea or spice producers focus their efforts on this promising segment. Thus, business analytics becomes a tool not only for internal management, but also for strategic entry and strengthening of positions in foreign markets.

Gradually implementing business intelligence, starting with small and medium enterprises, can create a cumulative positive effect on the entire Nepalese economy. Improving the efficiency and profitability of SMEs, which form the backbone of the country’s economy⁹⁰, will lead to increased demand for data scientists and analytical services, stimulating the development of the corresponding labor market and educational programs.⁶³Moreover, transparent, data-driven business processes can help reduce the corruption and inefficiencies often associated with afno manche practices.³⁰Successful data-driven SMEs can grow into larger companies, contributing to overall economic growth, economic diversification and a reduction in the informal sector.

Future of Data in Nepal: Prospects and Recommendations

The prospects for data use in Nepal are promising, especially given global technology trends and the growing understanding of the value of information. However, to fully realize this potential, coordinated efforts are needed from businesses, government, and the education sector.

Potential of AI and Advanced Analytics for Nepalese Market

Artificial intelligence (AI) and advanced analytics are opening up new horizons for Nepali businesses. Machine learning technologies can be used to more accurately forecast demand, optimize supply chains, and personalize offers. AI-powered chatbots can significantly improve customer service by providing 24/7 support and quick responses to queries. In agriculture, AI can be used to diagnose plant diseases, optimize resource use, and increase crop yields. Nepal has already shown interest in AI, with specialized AI centers being established and the government including AI development in its strategic plans.¹³⁰Examples include the KrishiGuru app, which uses AI for agricultural consultations.¹³¹, and Tele Plant Doctor App for plant disease diagnostics.⁷¹However, for AI to be widely adopted, local AI talent and infrastructure need to be developed.⁶³

The role of the state and educational institutions in the development of the data ecosystem

The government plays a key role in creating a favorable environment for the development of a data-driven economy. Initiatives such as Digital Nepal Framework ⁸⁴, startup support programs¹³⁰, investments in digital infrastructure¹³⁰and promotion of digital literacy of the population⁸⁸, are important steps in this direction. It is also necessary to develop a clear data policy, regulating their collection, use and protection, and stimulating the use of open data for innovation.

Educational institutions must take the lead in developing skilled human resources. Introducing modern programs in data science, business analytics and artificial intelligence in universities and colleges in Nepal is crucial.⁶³Some institutions, such as Stamford College and Kathmandu University, already offer such programs, with a particular focus on practice-oriented learning and close interaction with business.

Effective development of the data ecosystem is impossible without close cooperation between government, business and academia. The creation of joint research projects, internship programs and competence centers will help to combine efforts and accelerate the process of digital transformation.

Business Tips: How Nepali Companies Can Become Data Leaders

For Nepali companies looking to use data to improve their competitiveness, the following steps are recommended:

Start small, focusing on solving specific business problems using available data and tools. Don’t try to implement complex and expensive systems right away.
Invest in staff training and development. Improving the digital literacy and analytical skills of employees is a key factor for success.
Encourage experimentation and a culture of learning from mistakes. Working with data often requires an iterative approach and a willingness to try new methods.
Actively seek partnerships with technology companies, consultants and educational institutions to gain access to expertise and new technologies.
Use data to improve customer experience. In Nepal, where word of mouth and personal recommendations play a huge role⁴⁹, high quality service based on understanding customer needs (obtained from data) directly impacts customer loyalty and attraction.
Take into account cultural peculiarities when implementing changes related to the use of data, ensuring a smooth transition and employee engagement.

The future of data in Nepal depends on synergy between government, private sector and human capital development efforts. The government is already taking steps under the Digital Nepal Framework⁸⁴and support for startups.¹³⁰The private sector, represented by companies like Bhat-Bhateni, Daraz and AgriTech startups, is beginning to realise the value of data.⁵⁶Educational institutions are also involved in the process of training specialists.⁶³Success will depend on how coordinated and effective these efforts are, as no one side can achieve maximum results on its own.

Data-Driven AgriTech Development⁷⁰could be a powerful catalyst for the wider adoption of business intelligence in rural and traditional sectors of Nepal’s economy. Given the huge role of agriculture in the country,¹, successful application of data in this area (e.g. increasing crop yields, improving market access through platforms such as GeoKrishi⁵⁶) can become a clear example of the benefits of digitalization for other rural businesses. This, in turn, can stimulate demand for digital skills and tools in the regions, helping to overcome the digital divide between the city and the village.⁸⁴AgriTech can thus act as a Trojan horse, paving the way for wider digitalization and business intelligence adoption in Nepal’s regions.

If Nepal successfully embraces data as the “new oil,” it could not only transform its domestic economy but also reposition it in the South Asian region and beyond. The country, traditionally dependent on remittances and imports,², has a chance to become an exporter of not only labor, but also digital services and innovative solutions. Considering the existing plans for the development of the IT sector and the export of IT services¹³⁰, developing a strong data and analytics ecosystem will enable Nepal to create unique digital products and services. These could be solutions tailored to the specific conditions of developing countries or mountainous regions, such as high-altitude AgriTech or data-driven sustainable tourism. Such a scenario would lead to export diversification, attracting foreign investment in the technology sector, and improving the trade balance, reducing dependence on traditional sources of income and promoting long-term sustainable development.

Conclusion: Nepal on the Threshold of Data Revolution

An analysis of the current situation and prospects shows that data does indeed have enormous, though still untapped, potential to transform Nepal’s economy. Just as oil has changed the fortunes of many countries, the proper use of data could be the key to Nepal’s productivity, job creation, improved quality of life, and global positioning. However, as with any valuable resource, harnessing the power of the “new oil” requires significant and dedicated efforts.

The transition to a data-driven economy is not just a technological upgrade, but a complex process that affects business culture, the level of education and skills of the population, the quality of infrastructure, and the effectiveness of public administration. Nepalese companies will have to shift their focus from intuitive decisions and traditional approaches, often based on personal connections, to decision-making supported by objective analysis of information.

Call to action for key stakeholders:

For business leaders:

Don’t wait for perfect conditions. You can and should start working with data now, using the tools and resources available. It’s important to invest in training your employees, create a culture open to innovation and experimentation, and don’t be afraid to seek expertise from technology partners and consultants. Particular attention should be paid to using data to improve the customer experience, since in the Nepalese market, where personal recommendations and word of mouth are highly important, customer loyalty is a key factor for success.

For the Government of Nepal:

Efforts to improve digital infrastructure across the country, create a favorable and predictable regulatory environment for the development of the IT sector and e-commerce need to be continued and increased. It is important to support educational initiatives in the field of data and digital literacy, as well as stimulate demand for analytical solutions from the public sector. Transparency and accountability in the allocation of resources and the implementation of government programs can also be significantly improved with the help of business analytics tools.

For educational institutions:

It is extremely important to develop and implement relevant educational programs that prepare specialists in demand in the labor market – data analysts, machine learning specialists, digital marketing experts. It is necessary to establish close cooperation with businesses to ensure the practical focus of training and employment of graduates.

Data is truly a once-in-a-lifetime opportunity for Nepal to leapfrog economically. However, the “oil” will not extract and refine itself. Only through concerted, focused and sustained efforts by all stakeholders – business, government and society – will Nepal fully realize the potential of this new era of opportunity and build a prosperous future based on knowledge and innovation.

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