Big data and data science are no longer just words that are limited to the language of technology. Such technical advancements are critical for businesses to thrive and develop in this ever-increasing digital environment. It is projected that big data would produce a 60 % rise in the global operating margins of retailers. By using big data, European government administrators could save more than $149 billion in improvements to operational performance.
The possible causes of this technology for transformative use, apply to several industries. Understanding how to use data science will keep you competitive and rising when you’re a business owner of any type.
Data is nothing more than “out there” knowledge, all over the web. And the practical use of that data ensures it is processed in vast quantities and then churned and classified, depending on the particular details a consumer needs. Data scientists are the people who gather large “lakes” of information and then use their skills and algorithms to retrieve unique information that a user needs.
Here’s one illustration to further demonstrate the case. Suppose you’ve been a bank owner who wants to create credit products that will be very appealing to borrowers– products that will beat your competition. You will use data science to gather information on all types of loans that borrowers have sought over the past year, what demographic groups have sought what types of loans, what times of the year are different loans sought, and what types of loan features have become the most common. You can use all this knowledge to create credit products and sell them to different groups, thus growing the company’s lending business.
Today, as many as 65% of company owners agree that using big data makes their companies more successful. Big data investment is expected to hit $114 billion in 2018. Here’s the exact importance of big data that the businesses are the following
As noted above, information about market preferences can be captured and products/services updated accordingly.
Save yourself from needless spendings
If big data reveals that the products or services you are considering are not going to be popular, then you can scrap growth plans and use trends instead to refine and enhance what you are currently selling. Or, if you build what you know will be “hot,” you can follow those trends.
Improve your business
You can calculate and monitor customer response to products/services you are currently offering and to those you are considering in the future. Customer behaviors can be evaluated using actual data, not intestinal sensations.
Test your ideas
If you have ideas for new products/services before you move on to development, you can “check” them. Big data and AI, by evaluating existing patterns and predicting potential ones, will tell you whether they will be in demand in the future
Define your audience
Data about customers is significant. There could be whole populations out there whose attitudes and trends in consumption are a “fit” for the products/services you deliver. And yet you weren’t approaching them or selling them. Did you know, for example, that generation Z, which follows millennials, is even more focused on sustainability and diversity in the company? If you can demonstrate that your products/services or activities support environmental sustainability and/or promote diversity in your sector, there is a new target market out there for you to capitalize on.
Learning and Leveraging
If you haven’t started using big data, and related artificial intelligence (AI) and machine learning (ML), as a small to the medium business owner, there’s a lot to learn about the resources and processes you can use. Consider attending a Data Science workshop or conference to get a better understanding of how you can evolve using this new technology.
But not all conferences are produced equally, so make sure that your particular needs are identified and that the conference you are attending is actionable and satisfies those exact needs. For example, the AI and Data Science for Executives workshop are designed specifically for busy business executives, is conducted by an expert, and attendance is limited to 12 participants, so each participant receives personal care.
Data science is the most up-to-date “device” for companies looking to fulfill market demand. The uniqueness of it is that it is not dependent on what we can feel and what they want or need from customers. The facts show it is based on real patterns of habits and trends. Such facts are what all business decisions should be guided by, as they save money and time, but more importantly, they allow a company to reach new and existing markets with goods or services they would actually purchase.