Data Science is not anything new, it’s been here for ages, but the application of data science has considerably increased in the past decade. More and more businesses are taking the help of data science to grow their sales, products, and customer base. But what exactly is data science? And how does it even help in growing your business?
We will find answers to all these questions in this blog and will also talk about the fantastic applications of data science in today’s business world.
In simple words, data science is the process of extracting meaningful information from data that has been collected from different sources. The insights drawn with the help of data science further help in crucial decisions related to various departments.
For example- let us say you’re a grocery store owner and you are confused about when to increase the stock and when to decrease the stock as the sales and demand keep fluctuating.
So, here you can take the help of data science to find out the crucial metrics that can reveal the demand patterns. Let me explain how!
Now, data scientists will collect all the necessary data like when do customers mostly visit the market, what do they mostly buy, their budget, and when in the month their budget increases and they outspend, etc.
And based on all this data, data scientists will give you the answer. So, you can decide how to manage your stock.
Isn’t it simple? Well, yes, it is.
Data science applications
Now, let us talk about the different data science applications in today’s business world and understand how it can help your business.
1) Making Better Products
What do you think is the most crucial metric for a business’s growth?
Companies need to make products that align with their customer’s needs, provide satisfaction after consumption, and should be able to attract enough customers.
But how do you make such products? Making such products requires the analysis of customers and collecting their reviews to the best fit.
You can do all of this with the help of advanced analytical tools of data science. Data science can help you understand the market trends and customer needs based on legit data.
With the help of data science, businesses can make better products aligning with customer’s needs or improve the existing products.
For example – E-commerce platforms keep collecting customer data to understand their behavior and buying patterns to understand what their customers like. Hence, they place their products according to that.
2) Predicting Outcomes
Predictive analytics basically means using statistical data and machine learning algorithms to make predictions on the basis of historical data. And believe me, it is one of the most critical tasks of businesses.
You can use predictive analytics to forecast various business events such as sales, customer retention, upcoming threats and risks, and even the market.
Predictive analytics provides an unfair advantage to the businesses over their competitors as they can predict future events (up to an extent) and take suitable actions to overcome them.
With the arrival of data science which further fuels advanced predictive tools and technologies, businesses are now much more immune to the risks dwelling around in the industry.
Predictive analytics can be implemented in a variety of businesses and sectors, from healthcare to manufacturing to services to even education.
3) Better Business Decisions
In the past, businesses mostly used to make decisions based upon intuitions rather than being dependent on the data, which usually resulted in bad decisions, eventually leading to hefty losses. But the arrival of data science has given a complete turnaround to those old practices. These days, businesses first collect relevant data, implement data science practices, and then take proper decisions that are much more likely to make the desired impact.
Data science provides a plethora of data collection methods and necessary tools and techniques which make it possible for businesses to make calculated data-driven decisions. And not only that, business decisions (with the help of data science) are much more faster and provide accurate results.
4) Finding your target audience
The competition is increasing at an enormous rate, and businesses are struggling to get the desired attention from their audiences. According to reports, the average attention span is not even 3 seconds, so it is very important to come up with the right strategies in front of the right audience!
But targeting the right audience is not an easy task, especially with the amount of data we are generating. But with the help of data science, you make good use of this ocean of data. Each bit of your customer’s data– whether social media likes, emails or website visits- contains information that can be utilized to deeply understand your customers.
Using data science, you can combine and analyze all your customer’s data to generate valuable insights from the data to target your audience more effectively. It further helps you to tailor your products and services according to your customers.
For example- Facebook as a social media platform collects all the necessary information about the users and even keeps an eye on their behavior. All this data helps them to improve their ad services and gives them the exact idea of what products they should show to their audience.
Data science is a vast subject with applications in all industries and can significantly help in multiple tasks like decision making, automation, marketing, training, and much more. And the continuous increase in consumption and production of data is only going to increase its applications and the need for business growth.
And if you talk about the career, there are numerous opportunities in this field which are also going to increase over time as more and more businesses will need data science to make themselves more successful.
That was all about data science and its applications; I hope we got to learn something new. If you feel that there is anything that needs to be added to this piece of information, then be sure to let us know.
Senior Data Scientist and Alumnus of IIM- C
Senior Data Scientist and Alumnus of IIM- C (Indian Institute of Management – Kolkata) with over 25 years of professional experience Specialized in Data Science, Artificial Intelligence, and Machine Learning.
ITIL Expert certified APMG, PEOPLECERT and EXIN Accredited Trainer for all modules of ITIL till Expert Trained over 3000+ professionals across the globe Currently authoring a book on ITIL “ITIL MADE EASY”.
Conducted myriad Project management and ITIL Process consulting engagements in various organizations. Performed maturity assessment, gap analysis and Project management process definition and end to end implementation of Project management best practices