Data science can be described as a set of techniques for the aggregation, filtering, classification, clusterization, transformation, and extraction of business critical information, which can be hidden in the sea of information generated and collected from operations and processes. Data science can help companies harness the flow of information through their organization and make better decisions, improving customer satisfaction and by extension increasing sales.
If you’ve been reading about how could data science help companies, you’ve probably come across the story concerning a famous US supermarket chain, diapers and beer:
Wal-Mart possesses the largest data warehouse system in the world. Some time ago, they applied data science techniques, combining separate but related data sets and identifying patterns from previously uncategorised information, to analyse customer receipts and their loyalty card scheme. After extensive data mining, several correlations appeared from this analysis.
Among the many unsurprising correlations (e.g. bread & milk are purchased together), Walmart’s data scientists had unearthed the most surprising discovery: when making a purchase of diapers, the customer was just as likely to purchase…beer.
After being informed about the discovery, Walmart’s management sent instructions to rearrange store displays to position diapers next to the beers, resulting in increased sales!
In reality, this story is fictional, inspired by real-world events, such as Osco drugs, a pharmacy and grocery mainly operating in the Midwest of the United States. In Walmart’s case, no one predicted the correlation, but that’s only because no one asked the question before! It powerfully illustrates why we need business intelligence, what data science is, and how it can unearth new and innovative business strategies.
Improve your processes
Nowadays data science is a tool that can be used by any company, at all levels of an organization, to improve decision making, develop new marketing strategies, generate targeted advertising to customers, and more.
Every corporation is facing challenges to analyze the market and react as fast as possible. A data-driven methodology helps to identify issues in internal processes of your company, and empower managers, decision-makers, and stakeholders to react as soon as possible, avoiding potential failure and mitigating loss.
How can you know if your company needs to integrate data science expertise? Simply ask yourself these questions:
- Are you able to identify all of the potential sources of information within your organization? Do you collect any of this data?
- Today, are you able to make sense of the information you collect from all technology sources?
- Are you able to make evidence-based, data-driven decisions from your current information systems?
- Are you able to identify and refine your target audiences for the purposes of marketing and sales?
All of these issues can be solved via a thorough analysis of disparate sources of data.
At AlienGen, we are a data-driven company and we use data science extensively to keep our company healthy and ensure we are efficient for our customers. We continue to work with several companies to help them solve their data science challenges. Shoot us a message to discuss how we can help you!