All strong and successful businesses are built and run upon well-informed decision-making, which derive from a mix of leader experience, industry knowledge and, more recently, the regular implementation and use of advanced Data Science teams.
While the use of data has been around for many years, it’s hard to believe that it is only in the last five years or so that we have seen the adoption of such technology and skills really take off. Five years ago, the importance and demand for Data Scientists sat at a very meagre
17 per cent, whereas in 2019, we saw exponential growth of over 40 per cent – a number that is expected to continue growing as we move forward.
Within Data & Analytics, Data Science is a crucial arm within many businesses of all shapes and sizes. Through the collection and analysis of certain datasets, Data Science teams can delve into an organisation’s pain points, any potential obstacles and future predictions; crucial elements which, if looked at and planned for in advance, can be the making of a business.
So, how else can Data Science influence the decision-making process and make a positive impact on a business and its bottom line?
The removal of bias and the increase of accuracy
As humans we are innately susceptible to bias, conscious and unconscious, and this can be a hindrance on our ability to make informed yet impartial decisions. By relying solely on facts and figures instead of our own opinions, we are not only removing bias, but we are in turn making the decision-making process more accurate.
Accuracy within decision-making will remove the potential risk of mistakes and the need to re-do tasks, therefore saving precious time, resource and money, unequivocally a benefit for any business’s bottom line.
Efficiency
There are elements of all businesses that require trial and error for example, hiring practices. People who look great on paper and perform exceptionally well in first interview may turn out to be utterly the wrong fit six months down the line. However, collecting and recording data of those employees who do fit well into the business, compared to those who don’t, can help to reduce the chance of choosing the wrong candidate. This in turn improves staff retention rates, helps create a positive work culture and, of course, positively impacts profitability.
Considering the cost for hiring one person for a company is
around £3,000, Data Science is of huge benefit to any company, large or small, in reducing the risk of high staff turnover.
Mitigating risk
All businesses at some point in their lifetime will come up against potential obstacles and risks that, if not managed properly, can be potentially lethal. The implementation of Data Science will allow senior leaders to learn from past mistakes and create evidence-based plans to better tackle, or completely avoid, similar problems in the future.
This could be for either organisational risk or strategic risk, both of which can be extremely damaging if not prepared for. Organisational risk entails problems occurring within daily business tasks such as fraud, data loss, equipment and IT issues and staff resignations. Strategic risk relates to events that cannot be planned for in advance; those sudden and unforeseeable changes - a great example being the current COVID-19 pandemic.
However, with both risk groups, Data Scientists can help to mitigate these risks through learnings and observations made from reams of previous data, as well as real-time intelligence. This allows senior leaders to act fast where needed, and plan where possible.
Data & Analytics, and especially Data Science, has been, and will continue to be, a key driver in the evolution of many industries worldwide. As we move forward, we will undoubtedly see an even larger uptake of the available technologies as business leaders everywhere begin to see the influential value of data-driven decision-making.
If you’re a Data Scientist looking to take a step up or are looking for the next member of your team, we may be able to help. Take a look at
our latest opportunities or
get in touch with one of our expert consultants to find out more.
