As the technology revolution dawned, the business world entered the era of big data. With such massive amounts of data streaming into databases every day, the need for storage, management, and analysis has become crucial. Today, more and more businesses and organizations are hinging their operations on the power of big data and relying on the valuable information that it can yield.
As data has become one of the most important business assets, companies are leaning on methods, technologies, and tools to process this data and provide insights to influence decisions. This is where data science steps into the spotlight to extract, process, and analyze data sets from various sources. Overseeing these processes and delivering insights, data scientists are like modern-day information superheroes. Harvard Business even dubbed data scientist as the sexiest job of the 21st century. The value of data science within organizations today is unparalleled. Let’s take a closer look at data science and its impacts on the global business industry.
Given the crucial role that data and information play today, it is important to understand this concept. So, what is data science? Data science is an interdisciplinary technical approach that blends various tools, algorithms, and machine learning principles to extract key information. The goal of data science is to uncover unknown patterns from raw data collected across an organization from various sources. But how is this concept different from what data analysts have been doing for years?
Traditionally, a data analyst tried to explain what is going on by processing the history of various data and shed light on historical trends. Today, data science discovers insights from an exploratory analysis of data, however, it also uses various advanced machine learning algorithms to predict the appearance of specific events in the future. A data scientist can evaluate and examine data from many angles, and sometimes from angles not even known earlier. So, data science is principally used to inform decisions and predictions by manipulating predictive causal analytics, prescriptive analytics, and machine learning.
Traditionally, the data that was harvested by organizations was mostly small and structured. The size and amount of this data could easily be analyzed using very simple business intelligence tools. Unlike the structured data used in traditional systems, however, much of the massive data collected today are unstructured or semi-structured. Many analysts estimate that in near future, more than 80% of all data collected will be unstructured. This is because the large collections of big data today is generated from different sources like financial logs, text files, multimedia forms, sensors, and instruments.
As a result, simple BI tools do not have the capabilities for processing such a massive volume and variety of data. This is why companies are now relying on data science to produce more complex and advanced analytical tools and algorithms for processing, analyzing, and drawing conclusions from data.
Data scientists are responsible for numerous processes and systems across an organization. The results produced by their work facilitates communication and demonstration of the value of the institution’s data to promote improved decision-making. It empowers management and officers to make better decisions across the entire organization. Data science can offer actionable solutions through measuring, tracking, and recording performance metrics and other information. It directs these solutions based on trends. A data scientist analyzes and explores the organization’s data and presents insights. The information gleaned from data science processes is used to prescribe actions that will help improve business performance, engagement, and profitability.
With the heightened interaction with a business’s analytics system, data science creates opportunities to question the existing systems and develop additional methods and analytical algorithms. Data trends and insights require continuously and constantly highlights ways to improve the value of an organization’s data. Businesses employing high-level data science processes are armed with better decision making because of the quantifiable, data-driven evidence.
After the data-driven business decisions are made, that is only half of the battle. It is crucial to understand how those decisions can affect the business structure. Data science can measure the key metrics related to important decisions and changes and provide quantifiable insights about their success or failure. In the same way, the process of data science can help with the identification and refining of target audiences. With in-depth knowledge, businesses can tailor services and products to customer groups and test and tweak campaigns according to successes or failures.
Data has become the fuel for companies that keeps them on the road. By incorporating data science techniques into business operations, companies gain the ability to forecast future growth and analyze events. Data science adds value to any business using data well. From statistics and insights across workflows to aiding decision-makers, data science can be valuable to any company in any industry.