Why companies are investing in Data Science?
Over the last 5 years, there has been a lot of hype in the media revolving the word “Data Science”. It was a topic for breakfast, skepticism, and confusion in the tech world. Little do people know it will become a paradigm shift for data analytics and “Data Scientist” will become the sexiest job of the 21st century. Even LinkedIn published a report stating that the data scientist jobs grew by 6.5X since 2012 and Glassdoor said it was the highest paid field to get into.
So what is Data Science?
According to Investopedia- Data science is a field of Big Data geared toward providing meaningful information based on large amounts of complex data. Data science, or data-driven science, combine different fields of work in statistics and computation in order to interpret data for the purpose of decision making.
Every day we create a massive amount of data from different sources in our day to day life such as shopping, website visits, searching & listening to music, surfing internet, social media or searching for restaurants. Different industry verticals such as finance, the medical industry, pharmaceuticals, bioinformatics, social welfare, government, education, and retail also create an enormous amount of data.
Just to give you a rough idea of data produced in a single minute (source Domo)-
- Americans use 2,657,700GB of data.
- Instagram users post 46,750 photos.
- 15,220,700 texts are sent.
- Google conducts 3,607,080 searches.
If we look at a single day, current data output is approx 2.5 quintillion bytes of data daily. This number is huge and it is growing exponentially every day.
This real-time data helps in the creation of data products/services acting as an essential building block. It also helps Netflix to provide recommendations to its viewers, Facebook to provide friend recommendation or Amazon to provide product recommendation. These are the few of the thousands of things companies can do with this data.
Since we get services based on our own behavior and digital footprints, it leads to a continuous feedback loop in which our behavior changes product and product changes our behavior.
Data not only help companies to create a better product with great user experience, but it also helps them to make better-educated decisions and more ROI. Harvard Business Review study revealed that Companies in the top third of their industry which use data-driven decision making were on an average 5% more productive and 6% more profitable.
Data Science enables companies to find hidden insights, empowers management to make better decisions on their data, define goals, identify more opportunities, audience segmentation, and targeting.
With data science, companies can create better data strategies which are becoming a key differentiator and innovation necessity. It’s not just innovation as according to a new study from Forrester Research, 80% of companies who have already adopted a data science platform report a revenue growth exceeding 5%. It also provides the solution to remove all of the unknowns from business investment, marketing expenditure, and future plans.
Data Science is the game changer companies are looking for their organizations. It can provide the competitive advantage over competitors as well as implement systems and strategies to collect, analyze, and use data to quantify numerous benefits in the different area of operations.