https://www.datatobiz.com/blog/data-science-for-small-business/
SMEs or small and micro enterprises form an integral part of a country’s economy. In India alone, the sector is said to have employed around 111.4 million people in the year 2014, and in 2012 it contributed 37.5% to the GDP. But, the irony is that even after being such an important part of the economy, SMEs are not able to flourish as they should have. There is a major lack of strategic business planning and innovation that hinders their growth.
In order for the SMEs to remain competitive both nationally and globally, it is imperative that every SME owner investigates the lacuna and starts working on it. Developing economies such as ours often find it difficult to foster innovation in the SME sector, because there are other factors that need the government’s attention.
The major problems faced by SMEs include unskilled staff, irregular finances, poor infrastructure, old marketing strategies and lack of information.
An SME owner tries to tackle all the issues but neglects an important one. This factor is “information”. Even after having skilled people, a good flow of money and good infrastructure the business may cease to flourish as expected by the owner.
2. What happens when you decide
to incorporate data science
process into your business?
3. The transactional & customer engagement data taken at various points from the
customers such as the feedback on products, services, etc. helps the data scientists to
predict the return on investment for the company.
Also, this data helps the company design products according to the demand pattern of
the customers, hence improving the customer base. The marketing analytics designed
with the use of predictive analysis is further able to attract valuable clients.
Increase in The Number Of Customers
4. The customer demographical data is paired with the product he/she buys and is
recorded for future reference. This type of data helps understand the type of customers
a business must look forward to attracting.
Also, when the customers are presented with other products, their interest in any
particular product is recorded, so that demand can be anticipated. Recommendation
engines can help in up-selling other products to increase business revenue &
recommendations also works as customer delight.
Better Customer Service
5. Apart from improving the sales and customer demands, the company itself needs to
function properly. It necessitates ensuring that all the equipment installed in its facilities
is working efficiently.
The industries that deal with perishable goods need to make sure that they do not have
extra stock in their warehouses. Data Science can help business owners in inventory
optimization. The idea here is to predict the problem before it actually appears so that it
can be avoided by hampering the efficient working of a company.
Improved Efficiency
6. How can data science be used to
solve business problems?
7. Innovation is the key to surviving and sustaining in the business world. But
understanding the pulse of the customers is even more important to know which
upgrades and improvements to the existing products/services will be accepted by them
and which will be pushed aside.
It’s been the biggest secret that organizations are trying to hack every day. Complete
understanding of consumer behavior is nearly impossible, but data science can shed
light on this matter with a great level of accuracy. The right set of improvements done as
per customers’ feedback can make the product/ service widely acceptable in the
market within a short span.
1. Upgrades and Improvements
8. Having an idea is nothing till it gets executed properly. Even if the idea gets executed, it
needs to match the customers’ expectations and should be able to solve their pain
points. A great example would be streaming company Netflix, which started as an
alternative to movie renting but has exponentially grown to become an integral part of
every household. From movies to series to games, it dovetails into the vast pile of data of
customers’ sentiment and behavior and brings the best insights out of it. Every
successful product/service company does the same.
2. New Product or Service Development
9. Those days are long gone where manual security used to suffice the protection
measures. Machine learning algorithms merged with AI can enhance security
parameters to global standards. From fraud detection to data scanning, it can be
leveraged widely in security use cases. Multiple companies are going through the vast
set of data for finding patterns and ensuring no security issue is left unchecked. More the
cases are backed by data, the easier it is for the security personnel to verify, validate
and fix it.
3. Security enhancement
10. Identifying the next market trend can be the pivotal key for bringing a revolution in
business. What customers would need in the future, being able to predict that, is nothing
less than a superpower. Companies that stay ahead of the curve, have always been
leveraging the data to understand and predict the next big thing in their respective
industry. For example, a Nielsen study found out that a whopping 81% of the customers
want companies to take environmental sustainability seriously. Clothing retailer
Patagonia considered that and launched a worn-wear site, which helped their
customers to recycle used products, and in return, brand loyalty improved drastically.
4. Future market trend prediction
11. Read the full article
https://www.datatobiz.com/blog/data-science-process-solve-
business-problem/