Data Science for Business – Use Cases

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Last updated on
28th Mar, 2022
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04th Mar, 2022
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Data Science for Business – Use Cases

Data science has become a driving force for business decisions. With the right kind of information, an enterprise can make the kind of decisions that can truly propel the business for growth. According to various research, approximately 1.7 MB of data gets created every second for every individual on earth. This data comes from products, websites, and apps that we use, and businesses leverage this data to gauge what the consumers want.   

That is where data science plays an important role for businesses. Professionals interested in a career in this field can start with looking for data science courses online. In this article, we will understand the importance of data science for business. We will explore different verticals where data science and business work in close tandem..  

What is Data Science? 

Data science is an interdisciplinary domain that comprises statistics, mathematics, programming, scientific methods, artificial intelligence, and extensive data collection to extract valuable insights from granular, filtered data. These insights help predict the future for the business and how the markets will change. Data science professionals & data scientists analyze and extract meaning from data that can benefit the business. All the data used in data science for business prospects goes under the following life cycle: 

  • Capture the data (data acquisition, signal reception, data entry, data extraction) 
  • Data maintenance (data warehousing, data staging, data cleansing, data processing, data architecture) 
  • Processing of data (clustering / classification, data mining, data modeling, data summarization) 
  • Analyzing the data (exploratory / confirmatory, regression analysis, predictive analysis, qualitative analysis, text mining) 
  • Communicating through visualizations and reports (data visualization, data reporting, decision making, business intelligence) 

Importance of Data Science for Business  

It is a million-dollar question that is asked by every business executive to every aspirant asks. As per the report and research by LinkedIn, Data Science has become the fastest-growing domain in the new employment category. Professionals who have learned data science with Python are more likely to get a job. Every company requires data science professionals and data scientists to understand meaning from the data, every business is generating. Data science is changing the way business executives are making improved decisions and how business predictions are gaining traction on a daily basis. So, it is high time aspirants & students should learn data science with Python. Here are some of the key importance data sciences cater to in a business 

Data science techniques can help in cleaning the data so that the data science professionals can find meaning out of the granular and unstructured data. 

  • Data science helps in analyzing and extracting patterns from business data so that these patterns can be arranged to find meaningful insight that can help shape business decisions.  
  • Through data patterns, data science professionals can leverage tools & techniques to predict the future customers' needs towards a particular product or item. 
  • Data science is also helping large e-commerce companies by providing product recommendations to customers. All recommendation algorithms take data as input and analyze various data patterns like time, how frequently the consumer is taking the product, price range, etc. Based on all such factors, these algorithms help in recommending other similar products, which ultimately helps in increasing product sales.  
  • OTT platforms like Netflix, Amazon prime, etc., also leverage data science and machine learning algorithms to predict the taste and genre that their viewers love. Based on that, its algorithms recommend other shows, movies, and web series to keep them stay in touch with the app and generate more traffic.  
  • With the increase in datasets, industries like pharmaceuticals and healthcare can check and research new medicines on simulated systems to find the accuracy and potential of the medicine. Cure to new diseases or taking preventive measures is also possible by analyzing the past data and predicting when it occurs.  
  • Data science is crucial for business because it helps cut the cost of unnecessary manufacturing. Data analysis can provide clearer insight into market needs.  
  • As we all know, in humans, visualization plays a critical role in understanding a particular thing better. Data science has a specific division of visualizing the data where the data professionals can tell a story of what has happened and how to make the business better. Anyone, from top-level executives to blue-collar workers can understand what the data is trying to express.  
  • The data-driven analysis also assists companies in identifying and refining target audiences or consumers by incorporating existing data with further data points that can render meaningful insights. 
  • Data science also helps financial institutions and organizations to analyze frauds and detect scams through data patterns. It saves a lot of bucks to such businesses and helps prevent the company from damaging its reputation. 

Benefits of Data Science for Business

Data science and business work closely these days in every industry, whether it is an online retail store or a manufacturing industry trying to predict the supply chain demand. Every business wants to prosper by gaining more revenue and satisfying customers during business transactions. But not every company gets the exact data points that can lead them to profit. With the advent of data science for businesses, companies have found new ways to explore the data and extract meaningful traits that can help in better business prospects. Here is a list of benefits that companies can leverage through data science.  

  • Ensures real-time intelligence:

Data science professionals and/or data scientists can work in close tandem with RPA professionals to determine data sources for the business and create dashboards and visuals to search different forms of analyzing data in real-time. This dynamic and real-time analysis can help company executives make intelligent decisions accurately and quickly. That is how data science and business can work closely to reduce unnecessary time waste. Data science can help top-level management make prompt decisions simply by drawing insights from real-time visuals and dashboards.  

  • Improve business predictability: 

A lot of money gets wasted when companies fail in predicting the market demands accurately. That happens with a lot of business. That is why companies have been adopting data science techniques and tools to reduce unnecessary overheads. According to Reportlinker, the expected predictive analytics market across the globe will reach $21.5 bn by 2025. That will bring a growth of a CAGR of 24.5 percent to the predictive analytics industry.  

Companies have been investing heavily in data science for business, structuring the data, and cleaning it for better analysis. Companies are hiring data science professionals & data scientists so that they can build machine learning models. They train them with those cleaned data to make their systems better understand their consumer and predict their future needs. Data analysis also helps business executives and leaders foresee the competitive market & how to respond in different situations based on the data patterns. 

  • Better product pricing: 

perspective of every item or product. It is essential to analyze the market price & detect opportunities to beat your opponent in the competitive marketplace. Pricing does not simply deal with charging less to sell more. Businesses leverage data analytics to know and comprehend when to raise the price and when to play low. Along with the pricing decision, company executives should also monitor the consumer's reaction towards sales and constant price change.  

  • Understand and go with the market trend:

Every business should exploit the market trends. Even though trends are less long-lasting, they help gain more leads and customer traction. For extracting the maximum benefit of the trend concept, data science and business should work concurrently to understand the user demand. Data can speak a lot. Companies should leverage data science to create a connection about the tastes and likes of the public and yield more conversions.  

Analyzing the data through data science techniques helps companies understand which trends are the most suitable for business at different points of the year/month. If the data science professionals can analyze better plus generate clear visuals, companies can take maximum advantage of the trend. Also, businesses can take the help of data scientists to predict how consumers will react to the trend in the subsequent months and manufacture the product accordingly. 

  • Running better marketing campaigns:

Every single company across the globe wants to execute a top-notch marketing campaign. Businesses can utilize the data science to run better market campaigns and understand where to approach. For this, the marketers need relevant data. Data science for business can help marketers address marketing issues and questions precisely: 

  • Which strategies will yield a higher ROI? 
  • Which actions will render the best customer reach? 
  • Which content will generate more leads and conversions? 
  • Where to run the campaigns so that the marketing can experience more engagement? 
  • Which channels can induce the most traffic towards the business? 
  • Which scope should the marketing team pick for generating more interaction? 

Based on the practical information extracted by data analysis, the marketing team can approach an effective campaign towards a more inclined audience. Such analysis increases the chances of accomplishing satisfactory results and surpassing competitors increase.

  • Assessing business decisions:

Top-level executives and leaders of any business need to make multiple decisions based on the data, analytics, and reports generated by data science professionals. But data science also helps in assessing whether the previous decisions that were taken earlier went in the right direction or not. Such assessment is possible through several hypothesis testing techniques. After enforcing such decisions, businesses should comprehend how those conclusions affect the performance and growth of the company.  

If any decision drags to negative consequences, companies should analyze it and point it out so that next time the decision can increase business profits. Most decisions are customer-centric or business profitability-driven. Data analysis plays a significant role in understanding how corporate decisions impact and how to improve. 

  • Automating recruitment process:

Data science, in close collaboration with machine learning, helps various industries automate different processes through data-driven techniques. Various mundane and tedious tasks got eliminated to reduce time and increase individual productivity within the business landscape. The recruitment department of many modern businesses has taken the benefit of data science. Recruiting the right talent for the organization is very important to take the firm to new heights.  

Data scientists of that company can create an algorithm that leverages data to scrounge through the corporate database, job sites, and professional social media platforms. The algorithm can automatically screen through all the data points to find the best candidates for the organization. It ultimately reduces unnecessary screening efforts of the recruitment team and takes less time in finding the right candidate, increasing the business productivity.

Conclusion – 

Data science and business can work closely to bring productivity and reduce time. Through data science, companies can add worth to any business if it gets implemented properly. As per the World Economic Forum, "by 2022, data scientists & data analysts become the number one emerging role in the world."  Python is an ever-growing programming language with lots of development and community support and students can opt for KnowledgeHut to learn data science with Python. Here you can learn Python, that will help in analyzing & visualizing data with Pandas, Matplotlib, Scikit, creating robust predictive models with advanced statistics. Also, aspirants can acquire an acquaintance with hypothesis testing and inferential statistics for accurate decision-making. 

Data Science for Business

Frequently Asked Questions(FAQs)

1. How data science is used in business?

Correct information-driven knowledge is the most influential tool that can mold the business to completeness. As the data volume is increasing, companies are harnessing it to leverage its potential that can help determine future decisions in business. Data science helps in making future decisions, predictions of the supply chain, comprehending market trends, planning for better product pricing, automating different data-driven tasks, etc.  

2. Can a data scientist do business?

Yes, a data scientist can own a business and carry his or her business. There are even a lot of data scientists who provide data analysis and machine learning services along with a team of professionals in the form of a business.  

3. Is data science useful for small businesses?

Even though small businesses target a small number of customers or induce their services to a small region, data science plays a significant role for small businesses. Although hiring a data science professional for a very small business may become expensive - small and medium-scale firms & startups can leverage data science. It will help them perform better research, gain insight, and understand the market trends and directions.  

4. How data science can improve business efficiency?

 A lot of money gets wasted when companies fail in predicting the market demands accurately. It is because the company puts unnecessary money and time into manufacturing products. Those unnecessary production do not match the market requirements or do not fulfill the trends that the consumer wants. That is where data science for businesses comes in. Companies can seek the help of data science to understand the market trends and demands from past data.  

Appropriately analyzing it can provide better insight from these granular data generated by companies and other entities of the marketplaces. Data science also helps in better pricing a product. Data science helps companies analyze the market price & detect opportunities to beat their opponent in the competitive marketplace. Data science and business can work closely to understand the consumer's inclination towards a large set of items and run better marketing campaigns. Data science can help the marketing team prepare an effective campaign targeting those audiences who will respond to their approach.

Profile

Gaurav Kr. Roy

Author

Mr. Gaurav is a cybersecurity engineer, developer, researcher, and Book-Author who did his B.S.-Cybersecurity from EC-Council University & Masters from LPU. He is an India Book of Record holder, Guest speaker with 7+ years of experience in IT.