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  • Power of Data Science in Business

    Dr. Shweta Mogre, Associate Professor, IIMR

    Great philosopher Plato, very well defined the term knowledge as “Justified true belief”. For any business knowledge is supremacy and Data is providing the reasonable factual conviction on it. Hence, it is extremely valuable to identify the power of this data through data science. Data science is an inter-disciplinary field that uses quantitative methods, procedures, algorithms and systems to extract knowledge and insights from raw data. We can say that Data science is using ideas from mathematics, statistics, machine learning, computer programming, data engineering. It’s become a universal truth that modern businesses are awash with data.  As per the recent report of International Data Corporation (IDC) the collective sum of the world’s data will grow from 33 ZB to a 175ZB by 2025.

    Businesses can make use of this power of data science for their benefit and progress. They can use Data Science for evidence based decision making, for understanding the needs of their customer, employee benefits and policy makings. Following are the foremost uses of Data Science which confirms the power of Data Science.

    • Improving the Decision Making

    Quantifiable data, facts and figures are providing concrete base for judgment of decision maker. Although it is difficult to deal with data most of the times because in maximum cases raw data is in unstructured form. Hence, there is the need of acquaintance of analytical tools to gain better understanding of data. Through proper interpreting the facts and data one can choose best suitable alternatives for improving the performance of business organization. By practicing the advanced tools and techniques, business becomes more efficient in Decision Making.

    • Improving the quality of Product

    By using advance methods of analytics like Overall Equipment Effectiveness manufacturing firms can reduce their scrap. By graphing paretos a manufacturer can focus on the factors that affect performance. These activities are helpful to improve the quality of performance.

     

    • Better Demand Forecasting and Inventory Management

    To meet out customer demand on the right time is prime objective of any business organization. Using advanced forecasting techniques one can predict the accurate demand, which will support to proper inventory management. With the initiation of just-in-time (JIT) manufacturing, orders are based on tight timelines and tighter supply chains. Most of the manufacturers are using data science techniques in order to find out optimum level of their inventories and try to reduce lead time of orders, avoiding over-ordering inventory and over-producing goods.

     

    • Price Optimization

    Manufacturers can find out the best price for profit maximization. Knowledge of optimization techniques can helpful to determine most suitable price considering the various factors. Many manufacturing firms taking account of data analysis tool for pricing decisions.

    • Refining the Recruitment Procedures

    Recruiting is the complicated and exhausting process. In the Present era, it  is the age of social recruitment. Various data is available on social media, corporate databases, and job sites nowadays.  Companies can access these data to find out the best fit candidates for their organization. One can reduce the complexity of traditional methods by adopting data mining techniques. Use of data science, make the recruitment process faster and more accurate.

    • For Training of employees

    Only Right recruitment is not sufficient for any organization. To achieve the determined profit it is mandatory to attain the maximum productivity. This can be done by providing the correct training to employees at the right time. Data Science provides various platforms like Talent Analytics to improve existing training programs.  By eliminating old-fashioned methods of analyzing HR metrics, data science can significantly transmute the entire HR industry and support in achieve to the overall success of a company.

    • Identification of Customers

    The customer is the supreme essential asset of any business. Without the customer no business can achieve the success. Hence it is important to have the strong customer base. Use of data science permits the businesses to observe the various trends and pattern of customers. It provides insight into customer needs and preferences. It will help to fulfill the needs of customer correctly. By using modern and advanced tools of data science any business organization can create new promotions or offers for groups that may not have been accessible before. This will increase and update the database of customers.

    Hence using Data Science methods in the organization can add value in various aspects of business. By utilizing the power of Data Science businesses can grow all the more.

     

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