Data science is a study which deals with the various methodologies, tools, and techniques for identification, representation, and extraction of crucial insights from data sources to be used for business purposes.
In simple terms, data science is the science of extracting information that is out there but not easily accessible. Big data is just a problem statement without data science which deals with churning insightful information from broad sets of data.
Modern businesses are flooded with data. According to McKinsey significant data initiatives in the US healthcare system “could account for $300 billion to $450 billion in reduced healthcare spending or 12 to 17 percent of the $2.6 trillion baselines in US healthcare costs”. On the other hand, though, wrong data is estimated to be costing the US roughly $3.1 trillion a year.
Organizations have realized that Data science is crucial for organizations multidisciplinary growth. Following are the ways that Data Science is aiding value to businesses across various sectors.
Identify and acquire Business Opportunities
Prime objectives of predictive analytics are to predict and identify valuable patterns within vast data sets. That science deals with diving deep into these large data sets, to explore crucial insights regarding current market and consumer trends and their interests and preference patterns. By earning such ideas, entrepreneurs and marketers can restructure and optimize their business processes to best fit the consumer demands.
Today companies have realized that Customer is the king and knowing your customers better is the key to serve them better, which in turn increases customer satisfaction. That science helps discover new and fresh business opportunities in both existing and emerging markets. It helps in devising expansion strategy and ventures into new markets to expand the customer base.
Identify Potential customers
As mentioned in the previous point also, data analytics provides valuable information about customers and their preferences. By providing the insights about the current trends in the market and your customer base, data analytics aid in understanding how your customers are interacting and engaging with your brand. Data analytics is also helpful to perform sentimental analysis of the customers. Leveraging data analytics companies get access to customer data such as their age demographic, their location, their buying patterns, their likes and dislikes, interests and so on. Such insights help them understand the audience and further categorize them into customer segments according to their age, behavior, preferences, etc.
Testing Hypothesis or Results
Devising strategic plans according to actionable insights is not sufficient, after all, they are insights, that derive decisions based on factual findings. Organizations need to ensure that they are steering in the right direction if those insights are true. It is essential to assess how those decisions have impacted the organization. Here Data scientist comes into play, they measure the key performance metrics and quantifies the success.
Data sciences are optimizing business from various sectors by making them understand critical factors that influence customers buying patterns and market trends and opportunities.