Data Science is offering the best way to transform raw data into meaningful and actionable information. Data Scientists mine data, develop connections in various forms and provide recommendations that help businesses generate tons of revenue. Some of you might think it is the same as business intelligence; however, it is nothing but your misconception. Data Science means large-scale price optimization, classification of customers on numerous grounds, segmentation of consumer behaviors, exploring product profitability, and devising a foreseeing system that responds to future events based on historical data.
A real-life example of Parts Alliance Group can be perfect here that is an auto parts distributor and they used data science in the recent past to analyze more than 20 million transactions to figure out a dynamic pricing engine. This was done in order to identify which products to be discounted keeping the past patterns in consideration. Doing so, the company went on to boost its revenues by as much as 30 percent after merely 5 weeks of work with Data Science.
As per the statistics of the past year, 30 to 35 % of companies have adopted Data Science and so far, the transformations have been great reaping benefits uninterruptedly. Where large companies find this adoption easy, small and medium-sized enterprises are mostly wondering if this investment would be good for them or not. The biggest hurdle in their decision making is the finance limitation.
Why SMEs should Invest in Data Science
For any economy, small businesses act like the backbone because no matter how big the number of large enterprises is, it can never surpass that of smaller ones. They are actually the sector that should make full use of Data Science. The biggest reason is that the competition among small businesses is tough and they have to work day in and day out to gain a competitive advantage over their competitors. They have the advantage of agility at their end making them perfectly suited to act on data-derived insights will efficiency and miraculous speed. Being an owner of a small or medium business, the only question you might be having is how you can seize this opportunity.
How to Use Data Science
Data Science is not a software but a process that requires a proper chain of actions. Some of them are:
Determine the Business Objective
Before you dive into data science, it is crucial to identify the spot where you can find gold. It would not be wrong to say that data science can answer many questions and it is okay to have a curious mind. You should know the problem before you start looking for its solutions. The best approach is to focus on the business objective so that you can work in the right direction towards achieving them.
Assemble Your Data Warriors
If you have the in-house team that can carry on the project, or do you have to extend your search outside? When you go out, you have to be certain that the data scientists charge a high fee but, in the end, it is all worth it. However, you can use a mixture of in-house employees and specialists. The number of the team depends on the project and your business objective. What you can do is seek some data science consultancy to get through this step.
Although we have been explaining above that the benefits data science offers are huge, you should keep your expectations grounded. It is a process that takes time to complete and offer results. Starting small will offer results bigger than your expectations. You can start by examining the integrity of your data and move on to speaking out the proof-of-concept.
Results don’t come overnight. The team of data scientists invests time to mine the data, identify the similar patterns, strategize, and arrive at a conclusion. If you are yet to collect data, you will be needing more time than usual. Don’t forget to monitor your progress at all steps and measure the outcomes to determine the effectiveness of your project.
Repeat the Method
If data science seems to be working for you, repeat it again and again. The consumer behaviors keep changing with time due to numerous factors and when your company grows with time, it is better to look for new trends in the industry. When you do, you will start realizing the flaws in your marketing strategy and find ways to improve. Companies that repeat the process find efficiency gains that are greater than other prior systems. Being a small business does not mean you have to end up being small. As the great Bill Gates said, “If you are born poor, it’s not your mistake. But if you die poor, it is your mistake”. Think big, earn big, and go big.
Data Science is for every business looking to go big and earn big revenues. No matter what scale of your business is, if you are not looking to increase it, no one’s going to help you out. Data Science is the best and most feasible way that can help you find better ways to enhance the size of your enterprise through your own resources by simply focusing on the past customer data and mining out important information through it. It offers a 30 to 35 percent growth in revenues. You can easily imagine how great the rewards will be if you repeat the process after a considerable amount of time.
If you are looking for experienced data scientists, ITspresso is the right place for you. We are a team of experienced data scientists having years of experience in data mining through scientific methods, processes, algorithms, and systems. We help you extract valuable knowledge and insights from structured and unstructured data easily. For more information or to get a free quote, get in touch with us.