5 Ways Data Science Can Fuel Business Growth
Data science and big data are no longer strange terms that are limited to techie vocabulary. In fact, the continuous expansion of the digital world has made data crucial for businesses to grow and succeed. This is why both terms have become more commonly used in industries other than IT.
Based on the numbers collated by analytical consultancy agency McKinsey Digital, big data has the potential to improve a retailer’s global operating margins by as much as 60 percent. They also found that leveraging data allows governments to save millions in improving their operational efficiency.
Considering this, many businesses are now capitalizing on this potential to make the necessary changes in their business.
With the increase in demand for professionals with sufficient data science training serving as evidence for the usefulness of data science, it would be surprising if you don’t decide here and now – or, at least, until you finish reading this article – to hire a data scientist. After all, data will never lie, and with truth can come better business.
By the end of this article, you should already have a deeper understanding of the true meaning of data science and what it can do for your business.
Data Science Explained: A Briefer
While the term is no longer an alien phrase for some businessmen, many still don’t have a clue about what data science truly is. Beyond its direct definition of being the “study of data,” this concept describes a way to gather up all the information available in the worldwide web and analyze these to help organizations make informed decisions.
Essentially, those who handle data – called data scientists – are capable of gathering massive amounts of information from the web. They will then extract specific data using their algorithms and expertise to help companies have a shot at outperforming their competition.
Once the big data is gathered, companies can utilize the information in making important business decisions that can make or break their chances of succeeding. A good example of this is a financial institution – a bank, to be more specific.
Imagine that your bank plans on developing loan products that will attract borrowers and beat the competition. To do so, you will need data science to gather the following information that will help you decide which ones to offer:
- The types of loans consumers sought out during the past year
- Specific demographic groups that seek certain types of loans
- The period within that year when specific loans were sought
- The features of the most popular types of loan
Once you have all this, you can use it to come up with loan products that are particularly appealing to specific groups in the market.
5 Ways Data Science Can Positively Impact Business Growth
The analytical approach to facts and statistics can help businesses provide reasonable solutions that might not always be obvious at first glance. This is why data science and the insights it offers are more valuable for private businesses and government agencies alike.
It can also be used to understand consumers better and ensure the optimum productivity of employees, among other things.
Uncertain how data science can push your business towards growth? Here are five ways the field can add value to your company:
1. Improve decision-making with complete data analysis
The first and most important benefit of data science to establishments is improved decision-making. If data is within the arm’s reach of an organization’s primary decision-maker, they should be able to make informed business decisions that give them an advantage in the market.
However, having all the data doesn’t automatically make it easy; most data is raw and unstructured, after all. Before you can do anything with it, data must first be analyzed and “crunched” by data scientists before they can provide useful insight for the company leader.
After this, they can already start coming up with predictive models and even simulate various possibilities based on analytics.
2. Develop better products
Aside from its broader decision-making benefit, data science can also assist specific departments to help companies rise on top of the competition. One of the best examples of this is product development.
Data science can help you solve your customers’ most vital problems, which is one of the primary factors that can make or break your company’s success in dominating the market.
Moreover, data science can also give you an idea when and where the product or service will sell best. This is done by analyzing how an offering can help solve consumer problems and the overall market response to a specific product.
When you have insight soured from data science, you can develop better products that will attract customers and influence their purchasing decisions. Using historical data, competition comparisons, and market analysis, you’ll find out what products can yield better profits.
3. Promote cost-effective spending
You can also save yourself and your company from needless spending with the help of data science.
Being able to leverage data expertly also helps reduce production costs and improve your chances of being cost- and time-efficient in your production.
It also helps you make other financial decisions within the company, such as knowing when to invest in employees and deciding whether a daughter company would benefit the organization.
4. Define the target market more clearly
Success in a market requires knowing your customers. If you don’t utilize insight from big data, you may be missing out on an entire demographic with consumption patterns and behaviors that fit your products or services.
For instance, data indicates that Generation Z – which follows the millennial generation – can be more focused on diversity and sustainability. If your products foster environmental responsibility and diversity, then you should consider including this generation in your target market.
5. Ensure better recruitment results
The insight data science can provide is not only consumer-centric; it can also help companies make better human resource decisions and ensure better recruitment results.
Without enough data to back up decisions, recruitment can prove to be an exhausting effort. Data science helps make this process faster and more accurate. Thanks to information gathered from various job sites, social media, and corporate databases, your HR manager should be able to find the best candidates among a sea of applicants more efficiently.
Arm Your Company With Big Data
Big data is now an essential part of business, regardless of the industry you’re in. It doesn’t matter if you decide to have existing employees undergo data science training courses or hire someone who already has.
The important thing is to have a data scientist within your ranks to provide the most effective ammo for you to win over the target market: big data.
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AUTHOR BIOTapas Banerjee founded Web Age Solutions, a premier IT training company, serving Fortune 500-sized companies across North America. Under his leadership, Web Age has won multiple awards such as Inc 500 and Profit 100 as one of the fastest growing companies. He is instrumental in coming up with various training offerings in the growing fields of Data Science and AI, Cloud and Microservices.