WHAT IS DATA SCIENCE?
Data science is the process of building, cleaning, and structuring datasets to analyze and extract denotement. It’s not to be perplexed with data analytics, which is the act of analyzing and interpreting data. These processes share many homogeneous attributes and are both valuable in the workplace.
Data science requires you to:
Run experiments to accumulate data
Assess data’s quality
Clean and streamline datasets
Organize and structure data for analysis
Data scientists often inscribe algorithms—in coding languages like SQL and R—to amass and analyze astronomically immense data. When designed congruously and tested exhaustively, algorithms can catch information or trends that humans miss. They can withal significantly expedite the processes of amassing and analyzing data.
For example, an algorithm engendered by researchers at the Massachusetts Institute of Technology can be acclimated to detect distinctions between 3D medical images—such as MRI scans—more than one thousand times more expeditious than a human. Because of this time preserved, medicos can respond to exigent issues revealed in the scans and potentially preserve patients’ lives.
In the Harvard Online course Data Science Principles, Edifier Dustin Tingley stresses the paramountcy of both the human and machine aspects of data science.
“With this incipient world of possibility, therewithal comes a more preponderant desideratum for critical celebrating,” Tingley verbally expresses. “Without human thought and guidance throughout the entire process, none of these ostensibly fantastical machine-learning applications would be possible.”
If you optate to make sense of astronomically immense data and leverage it to make an impact, here are five applications for data science to harness in your organization.
BUSINESS APPLICATIONS FOR DATA SCIENCE
1. Gain Customer Insights
Data about your customers can reveal details about their habits, demographic characteristics, predilections, aspirations, and more. With so many potential sources of customer data, a foundational understanding of data science can avail make sense of it.
For instance, you may amass data about a customer each time they visit your website or brick-and-mortar store, integrate an item to their cart, consummate a purchase, open an electronic mail, or engage with a convivial media post. After ascertaining the data from each source is precise, you require to cumulate it in a process called data wrangling. This might involve matching a customer’s electronic mail address to their credit card information, convivial media handles, and purchase identifications. By aggregating the data, you can draw conclusions and identify trends in their demeanors.
Understanding who your customers are and what incentivizes them can avail ascertain your product meets their job to be done and your marketing and sales efforts are working. Having an understanding reliable customer data can supplementally apprise retargeting efforts, personalized experiences for concrete users, and amendments to your website and product’s utilizer experience.
2. Increment Security
You can adscititiously use data science to increment the security of your business and forfend sensitive information. For example, banks use intricate machine-learning algorithms to detect fraud predicated on deviations from a user’s typical financial activities. These algorithms can catch fraud more expeditious and with more preponderant precision than humans, simply because of the sheer volume of data engendered every day.
Even if you don’t work at a bank, algorithms can be acclimated to bulwark sensitive information through the process of encryption. Learning about data privacy can ascertain your company doesn’t misuse or share customers’ sensitive information, including credit card details, medical information, Convivial Security numbers, and contact information.
“As organizations become more and more data-centric, the desideratum for the ethical treatment of individual data becomes equipollently exigent,” Tingley verbalizes in Data Science Principles.
It’s the amalgamation of algorithms and human judgment that can move businesses more proximate to a higher caliber of security and ethical utilization of data.
Cognate: 9 Fundamental Data Science Skills for Business Professionals
3. Apprise Internal Finances
Your organization’s financial team can utilize the data science to engender reports, engender forecasts, and analyze financial trends. Data on a company’s cash flows, assets, and debts are perpetually accumulated, which financial analysts can utilize to manually or algorithmically detect trends in financial magnification or decline.
For example, if you’re a financial analyst tasked with forecasting revenue, you can utilize predictive analysis to do so. This would require calculating the presaged average selling price per unit for future periods and multiplying it by the number of units expected to be sold during those periods. You can estimate both the average selling price and the number of expected units sold by finding trends in the historic company and industry data, which must be eligible, cleaned, and structured. This is data science at work.
Adscititiously, risk management analysis can be acclimated to calculate whether certain business decisions are worth the potential downsides. Each of these financial analyses can offer valuable insights and drive business decisions.
4. Streamline Manufacturing
Another way you can utilize data science in business is to identify inefficiencies in manufacturing processes. Manufacturing machines amass data from engendering processes at high volumes. In cases where the volume of data accumulated is too high for a human to manually analyze it, an algorithm can be indited to emaculate, sort, and interpret it expeditiously and accurately to amass insights.
For example, industrial automation company Oden Technologies engendered a machine-learning implement called Golden Run, which amasses manufacturing data, identifies times of highest efficiency and provides recommendations for replicating that high-efficiency state. As the algorithm accumulates more data, it provides better recommendations for amendment.
By utilizing data science to become more efficient, companies can cut costs and engender more goods.
5. Prognosticate Future Market Trends
Amassing and analyzing data on a more immensely colossal scale can enable you to identify emerging trends in your market. Tracking purchase data, celebrities, and influencers, and search engine queries can reveal what products people are intrigued with.
For instance, apparel upcycling has been on the ascension as an environmentally conscious way to refresh a wardrobe. According to research by Nielson, 81 percent of consumers feel vigorous that companies should avail amend the environment. Attire retailer Patagonia, which has been utilizing recycled plastic polyester since 1993, leaned into this emerging trend by launching Worn Wear, a site that’s categorically designed to avail customers of upcycling used Patagonia products.
By staying au courant on the deportments of your target market, you can make business decisions that sanction you to get ahead of the curve.