Data science is the process of extracting knowledge out of data which helps to answer questions related to any business. It is both an art and science. A data scientist should have programming skills, statistical readiness and business knowledge. The crux is straightforward – data science helps to answer bigger questions related to the success of the product in the market.
How Businesses Are Using Data Science to Build Bold & Better Products?
How Uber Used Data Science to Reinvent Transportation
There are around 1 billion Uber trips happening in around 449 cities in 66 countries. The process of hiring a cab via Uber is extremely simple. Simply download the app, enter your pickup and drop location, check the fare and book the cab. Easy, isn’t it? But at the backend of such an easy riding process lies big data and data science.
Uber uses data science to look at the patterns left by its drivers and passengers and constantly evaluates the performance of drivers and the most appropriate ride fare based on the time of the day. Uber uses Spark and Hadoop to process the data. All the collected gets stored in the Hadoop Lake.
Sophisticated algorithms use large databases to find the nearest driver as soon as a cab is booked. Everything happens within 15 seconds. Predictive analytics are used to calculate the time the driver will take to reach the destination.
All this happens at such a fast pace that the passenger feels everything is so easy. A team of data engineers and data analysts are at constant work to deploy the best set of algorithms and collect every bit of data in order to ease riding.
Your Car Is Already a Tracker
Many of us don’t know but the car you are driving might be a tracker. Right now, around 78 million cars have a tracking technology that tracks the vehicle movements so that the car manufacturer’s get the data about the places you visit frequently and when do you visit them.
Data is money and car manufacturers know it. This is the reason why your car’s entertainment system, smartphone apps and telematic devices are all busy capturing data about your behavior and fetching location patterns in order to serve you the best product in the future based on your driving needs. This results in a dual advantage. As a consumer, you get products that best match your needs and as a business owner, the car manufacturer is able to make huge profits. Don’t forget all this is happening with the help of data.
How the Retail Industry Is Using Data Science to Optimize Customer Experience
A great product is nothing without an even better customer experience. This is where retail industries are gaining the upper hand. They are constantly using data science and predictive analytics to improve the experience of the user.
Customer behavioral patterns are stored like which product the customer buys the most, when do they buy it, how do they buy it etc. Sentiment analysis of product reviews is performed, Data from social media is evaluated, call center records are analyzed, video data analysis is performed to identify patterns that can impact the success of the product in the present and the future.
Cosmetics major Loreal is already using data scientists to identify the effects of cosmetics on various skin types. This will help them build a great product for a specific skin type based on the large set of data collected via various channels. The result is improved product quality and enhanced customer satisfaction.
Top Ways How Data Science Helps A Business To Grow Faster
Data science is certainly adding a lot of value to a business. Here are the top ways it’s helping a business to succeed:
- It is helping the top level management to make better and improved business decisions.
- It is helping the product manufacturers to identify future market trends and modify the product features accordingly.
- The staff is motivated to adopt the best practices and focus on the most pressing issues.
- Unnecessary spending is avoided as the management is already aware of the products and features that can have an impact in the future.
- It is helping the recruitment team to hire talented people who are responsible for building great products in the future.
- Data science, along with artificial intelligence, has made it easier to test ideas.
- It is helping marketers define their target markets accurately. This means only the most relevant products are being pushed before the consumer.
Data science is certainly a game changer for any business. In the current scenario, more and more businesses are unlocking the potential of big data to build great products and improve the customer experience.