“Data Science as an optimization lever” was the subject of the first Workshop of the year behind closed doors of the Big Data & Business Analytics Observatory of the Politecnico di Milano. Blue BI was there and we are going to tell you about the panorama that has emerged regarding the application of Data Science in the Italian market.
Data Science in Italian companies
Compared to the past, more and more companies are experiencing and appreciating the benefits of using Data Science and Advanced Analytics projects.
There are many fields of application and planning to be put in place, currently in Italian companies are emerging Data Science projects that concern:
- Optimization of Pricing and Marketing Campaigns
- Creation of Customer Personas
- Up-selling and cross-selling activities
- Churn Prediction
- Customer Strategic Segmentation
The orientation of the data science teams is to act on those levers that allow to have immediate results on the corporate revenues, rather than on the optimization of the processes and the cost reduction.
Another interesting fact to note is that despite the popularity of the projects of “Churn Prediction”, certain businesses have witnessed the reduction of its significance due to the commoditization of some services and products.
Use of Data Science in Italian companies
21% of these companies have a central structure dedicated to data. Below is an overview of how the Data Science team uses time on average:
- 25% for Development and maintenance of Advanced Analytics algorithms and models
- 28% for Descriptive Analytics Activity
- 28% for scouting and harmonization of technological choices
- 13% for Data Collection and Preparation Activities
- 6% for Data Literacy Enhancement in the Enterprise
In addition, 36% of large companies have a Data Science platform.
With regard to design methodologies, a varied panorama emerged:
While for many companies the organic and structured measurement of the value generated by Data Science is still partial or in the implementation phase.
How can Data Science improve your business processes?
Data Science allows to estimate the probability of future scenarios or to propose to the decision maker operational or strategic solutions through mathematical-statistical methodologies or algorithms of ML-AI.
A practical example: the production flow of industries means that there are machines constantly in operation, the interruption of which could affect the whole process. If instead we equip these machines with sensors, these will produce data that is essential for deep predictive maintenance (see article on IIoT and Industry 4.0). In this way, production will not have to stop and the risk of machine failure will also be reduced. In fact, knowing in advance when you will have to replace a component always results in time and cost savings.
But the benefits for companies can be many:
- Reduction of campaign costs
- Reduction of customer acquisition costs
- Reduction of “cost to serve”
- Increase in Customer Satisfaction
- Increased loyalty
- Reduction of customer abandonment rate