Importance of Data Science in Business

Data science is a collection of techniques and skills that aid in extracting meaningful information from vast quantities of raw data. It involves a broad spectrum of tools and techniques that include predictive analytics, artificial intelligence natural language processing, visualization of data, and many more. Its importance is widely recognized in the business world and its practitioners are demanded.

Data science is being utilized increasingly in every industry. In some instances it’s an integral part of the strategy and operations scalable IT solutions for future readiness of an organization. It helps businesses develop more effective marketing campaigns and to better determine the best time to advertise their products. It assists in reducing financial risks by identifying fraudulent transactions and preventing failures in manufacturing plants and other industrial settings. It also helps block cyberattacks and other threats to IT systems.

For instance, the algorithms used to track users on social media platforms and digital billboards can track the shopping habits of a customer and use that information to tailor their marketing messages. This helps improve customer conversion rates and ultimately leads to higher ROI for marketers.

In the medical field the ability to visualize and analyze massive amounts of patient data has allowed doctors to develop new treatments and diagnose diseases more precisely. It has also enabled doctors to practice preventive medicine and to explore treatments more quickly.

However, some of the more alarming uses of data science are those that could be a serious ethical risk. According to ProPublica, the COMPAS Recidivism Risk score used by many law-enforcement agencies to predict future crimes could be biased against African-Americans.