In an era where more data is generated, computer power is increasing and mathematical approaches are sharpened, business impact can be achieved with data. Indeed, data science is no longer limited to just algorithms and modelling but also adding business value. The collected raw data can be analysed and direct subsequent actions. For example, larger interpretation of datasets often predict better market trends which can in turn attract investments, better target audiences based on the collected analytics and thus target market niches.
Business analysts bridge both their IT and business skills to help enhance a firm’s efficiency and maximise profit. They work closely with data scientists which are trained to analyse hidden patterns from data using maths and algorithms. This collaboration benefits business by:
- Risk and fraud mitigation: outliers and unusual datasets are picked up upon with predictive fraud models (often statistical). This allows “red flags” or alerts to be noted and acted upon early on.
- Identifying market niches: by understanding where certain products or services thrive while others fail amongst different age groups, nationalities and locations, allows businesses to better direct their sales. In response to these, business models can be validated, tweaked or discarded. Market gaps can also be identified leaving room for solutions to be developed to cater to any customer/client demands.
- Personalised customer experience: as users often leave digital footprints when they browse the web, order online or even listen to music, all this data can be collected to create customer profiles. For example if a customer buys X at Y price will they also buy a similar product at a price Z? They may not buy the second product immediately but if it shows up again in their searches due to personalised advertisement they may later. Sales and marketing teams rely on all this data to direct their sales and reach their audiences.
The CPD accredited courses are carefully crafted to help you gain in-depth knowledge on a topic of your interest.
However cookies and personalised ads have also raised ethical concerns as more people realise that our web interface is now tailored to individuals meaning that the access to information is not equal and even argued to be manipulated. Try it yourself by typing in the “the impact of climate change on the economy” and compare what shows up on your screen versus your friend’s computer – different results will likely show up despite you using the same browser.
All collected data can add value to businesses by: guiding the decision making processes based on analysed metrics, directing actions or investments based on trends, identifying opportunities and market niches, refining target audiences but also hiring new talents.