How do you prevent millions in lost revenue from disappearing from your bottom line? What can you do when existing customers seem to evaporate twice as quickly as your new customers sign on? Where do you turn when the cost of managing your systems is now $12M over budget, and it is only the end of Q2?
Simple, data science.
Our information age is a remarkable time in history, but the overabundance of data is one of the major challenges to commercial enterprise around the globe. Nearly every transaction in business today results in the capture and subsequent storage of multiple data points. It is no wonder that data center systems spending worldwide is projected to top $225B USD in 2023, a substantial increase from the $75B estimated a decade earlier.
This is why data science is critical to your business. It’s not about nonsensical purposes like the “inter webs” or “ultra dimensional visualization” (I made that one up). It is about making the most of the exabytes of data flowing through your systems today. Unfortunately, there is no silver bullet solution that will magically turn your data into real, actionable intelligence. But the good news is that the practice of data science is geared toward solving this challenge. I think it is best if I start with some basics.
What is actionable intelligence? Simply put, it is information in context that allows for a reduction in uncertainty, improved decision making, and business change. It’s what you and I do daily when we decide whether to carry an umbrella based on the weather forecast. But in business we cull through vast quantities of data to identify the nugget of intelligence our business needs. This is much more difficult than reaching for the galoshes.
The process of optimizing your data begins within your business practices. Data points are collected during the various actions and transactions that make a business move. For example, these can occur during a shift in inventory or the completion of a service call that generates a series of data points. Data for these are collected and stored in your data centers.
Simple… so far.
Next the data points are summarized into reports. These are analyzed to create information, and the information is placed in a business context to develop actionable intelligence. Decisions made on this intelligence can help you drive down costs, reduce risk, and identify new revenue opportunities. They might even get Taylor Swift to your next big corporate event (maybe not!).
This is the value of data science. Without this process, your technology dollars could be spent storing data that delivers no measurable value. You could spend hundreds of thousands, or even millions, collecting and storing data across your various technology solutions, all for naught without the actionable intelligence developed in an effective data science program. Think about the productive ways you could be using that money instead.