By 2025, data would be “embedded in every decision, interaction, and process,” anticipate analysts at McKinsey. It’s hard to overstate how valuable data can be today — whether used to improve sales, build better products and services, or find more customers. Gartner also suggests that 15 million dollars a year is what organizations lose every single year due to poor data quality. That’s a hefty sum: it can hurt the bottom line, reduce revenue, and impact the future of the business.
Every company, from large corporations to startups, must find a way to capitalize on its data. However, to achieve that goal, companies must turn to teams of data scientists, for they can find the hidden value in data and translate it into actionable insights. These insights are pivotal in understanding the customers — their purchase patterns, the products they like, and the services they want. That is easier said than done. Building an in-house team of data scientists takes time, money, and effort. Also, it’s not always clear that the people on that team would be kept engaged, challenged, and motivated, given the narrower scope of the problems they would be working on.
And that brings us to the question: how can enterprises use data science to have a competitive edge in the market? Is partnering with a data science firm the best bet for companies to make the most of their data? In this article, we’ll be taking a closer look at why enterprises should partner with a data science expert firm like Emergys for success and, in the same vein, reflect upon the disruptions introduced by the new, modern data harvesting methods.
Data Science – A Primer
Data Science uses advanced analytical techniques and tools to extract knowledge from large amounts of raw data. Many organizations employ data science for product development, marketing, and financial analyses.
With the help of data science, organizations can increase their revenue by analyzing customer behaviour and understanding what motivates them to make purchases. For example, suppose you want to know why your customers buy pizza instead of chicken wings on Friday nights. In that case, you can use data science to analyze their purchase history records and see if they prefer pizza over chicken wings at that time.
This is a crucial step because it helps you understand how your customers behave and what kind of products they prefer over others. You can then use this information to create marketing campaigns to drive more traffic toward your website or other online stores.
Benefits of Data Science
Data science is a powerful tool for businesses looking to maximize their resources. The information it generates and the insights they uncover can drastically change a company’s future.
Here are some of the benefits of data science:
- Improved productivity
- Enhanced decision making
- Better customer profiling and segmentation
- Better marketing strategies
- Improved business efficiency
- Optimized sales and marketing channels
- Boosted customer lifetime value
- Simplified revenue generation
- Streamlined operations
Notably, data science offers businesses endless possibilities for making sense of their data. And the companies that understand how data science works and what this technology can do for them stand to gain a lot more than others.
The Challenge
The main challenge for most companies is the in-house data science team. It’s not a secret that data science is new, and there are no set templates to leverage it. There are many different approaches, tools, and frameworks.
In addition, companies usually need more budget to hire a full-time expert team to address the same. Even if they do, it’s not abundantly clear that an enterprise understands the nuances of data science well enough to derive the maximum benefit from such a high-powered team.
The Argument for Partnering with a Data Science Firm
A company that wants to utilize data science should partner with experts who can scale their operations by providing the necessary infrastructure and tools to deploy data science in their enterprise successfully. And that becomes imperative considering the following points:
Technology Is About to Disrupt Everything.
Change is faster than ever, and business opportunities are greater than ever. But companies require more than just technology to succeed in today’s marketplace. They need the right people, too, who can make sense of the data and help shape the strategies accordingly.
That’s where experts come in — people who understand how data science works and what it means for a specific business. Technology and data science experts can help create a competitive advantage by comprehending what differentiates a company from its competitors. They are in the position to understand which customers are interested in the product and can help businesses build a customer base. More so, they know how to crunch the data to find opportunities, identify risks and create a plan for the future.
Preparation for Digital Revolution is Necessary
The digital revolution is happening rapidly and sweeping across every industry and sector. The nature of the digital revolution means that almost everything is changing — from social lives to how humans consume information to even how the information is created in the first place. As a result, businesses face an unprecedented challenge: How do they adapt?
All considered, here’s a quick rundown of how data science experts can help enterprises:
- Providing the right data: No action can be taken without correct data. An enterprise must get the right data to make informed decisions.
- Facilitating efficient analysis: Enterprises need to know how their customers use their products, what they like about them and dislike about them, etc., so that they can improve them or develop newer products altogether.
- Integrating multiple sources of information: If an enterprise gets hold of all possible data sources like social media platforms, news outlets, customer reviews, etc., then it will be able to get a better understanding of the market trends and make informed decisions.
- Building models for predictive analytics: Predictive analytics helps enterprises understand what customers want better than what they say themselves.
