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Five ways data science can impact your company's profit
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Many receive advice, only the wise profit from it. This holds water mainly in the use of data science in business. Building and scaling data capabilities within an organization is one thing, what is essential is to make appropriate use of these new age technologies to increase profitability.
The growing demand in the use of data science for business purposes is evident in today's economy. Let's discuss 5 ways businesses can actually take advantage of this:
Understanding Consumer Behaviour
Predictive models can be extremely valuable to companies as they help in the understanding of consumer behaviour. This is a powerful tool since it gives organizations the ability to predict how variables can impact operations and thereby also opens doors for the implementation of pre-emptive measures. Sales and marketing teams thus better appreciate the needs of their audience and are able to increase chances of success through the appropriate use of these models, boosting profitability.
Bridging Gaps in Business Processes
Hiring proficient data scientists who are experts in developing algorithms, allow businesses to identify and utilize these gaps in business processes. This in turn creates room for strategies to improve efficiency and increase profitability. For example, a manufacturing company may identify glitches in a particular machinery that affects production which can then be addressed to reduce cost and thereby create higher profit margins.
Validation of the following trends allows businesses to identify those models that can most accurately make a difference in profit and loss. These can be done through methods of re-substitution, bootstrapping, random subsampling etc. Organizations can choose the most applicable ones that can make a significant impact and actually solve real life problems and issues faced in administration of practices. This in turn serves the purpose of incorporating changes which could then grow profits.
Machine Learning and Natural Language processing are methods of data analysis and data science that intrigue us all. These enable organizations to automate time consuming repetitive processes through the use of artificial intelligence. The automation of repetitive administrative tasks and processes enable allocation of resources into tasks of higher productivity without increasing the overall business costs.
Making data backed business decisions
Clear and factual data proves to be self-explanatory. Statistical use of data allows organizations to structure data in a manner which makes it legible to non-technical professionals. Marketing strategists use these statistics and tabulations to make sense of factors impacting the yield of profits. As such, businesses can use this to drive profits and cut losses through the sheer usage of numbers.
Data Science can help businesses in numerous ways, I have attempted to discuss just five. With the rapid growth in Innovation, we are yet to see more developments in the field of data driving financial gains. A double edged sword, it is important to note while Data Science has numerous benefits, it is even more crucial to make the right use of algorithms, models, data and statistics with the combination of talent that can utilize these in the most appropriate form. This hence has given rise to the demand for experienced Data Scientists across all industries.