Data Science Use Cases
BackgroundFor each type of analysis think about:
- What problem does it solve, and for whom?
- How is it being solved today?
- How can it beneficially affect business?
- What are the data inputs and where do they come from?
- What are the outputs and how are they consumed- (online algorithm, a static report, etc)
- Is this a revenue leakage ("saves us money") or a revenue growth ("makes us money") problem?
Use Cases By FunctionMarketingPredicting Lifetime Value (LTV)
- what for: if you can predict the characteristics of high LTV customers, this supports customer segmentation, identifies upsell opportunties and supports other marketing initiatives
- usage: can be both an online algorithm and a static report showing the characteristics of high LTV customers
- What is a given lead's likelihood of closing
- revenue impact: supports growth
- usage: online algorithm and static report
LogisticsDemand forecastingHow many of what thing do you need and where will we need them? (Enables lean inventory and prevents out of stock situations.)revenue impact: supports growth and militates against revenue leakageusage: online algorithm and static reportRiskCredit riskTreasury or currency riskHow much capital do we need on hand to meet these requirements? Fraud detectionpredicting whether or not a transaction should be blocked because it involves some kind of fraud (eg credit card fraud) Accounts Payable RecoveryPredicting the probably a liability can be recovered given the characteristics of the borrower and the loan Anti-money launderingUsing machine learning and fuzzy matching to detect transactions that contradict AML legislation (such as the OFAC list)
Customer supportCall centers
- Call routing (ie determining wait times) based on caller id history, time of day, call volumes, products owned, churn risk, LTV, etc.
Human ResourcesResume screening
- scores resumes based on the outcomes of past job interviews and hires
Use Cases By VerticalHealthcareClaims review prioritization
- payers picking which claims should be reviewed by manual auditors
Consumer FinancialCredit card fraudBanks need to prevent, and vendors need to preventRetail (FMCG - Fast-moving consumer goods)Pricing
- Optimize per time period, per item, per store
- Was dominated by Retek, but got purchased by Oracle in 2005. Now Oracle Retail.
- JDA is also a player (supply chain software)
- Might have telemetry data
- Identifying contractors who are regularly involved in poor performing products
Life SciencesIdentifying biomarkers for boxed warnings on marketed productsDrug/chemical discovery & analysis Crunching study results Identifying negative responses (monitor social networks for early problems with drugs) Diagnostic test developmentHardware devicesSoftware Diagnostic targeting (CRM) Predicting drug demand in different geographies for different products Predicting prescription adherence with different approaches to reminding patients Putative safety signals Social media marketing on competitors, patient perceptions, KOL feedback Image analysis or GCMS analysis in a high throughput manner Analysis of clinical outcomes to adapt clinical trial design COGS optimization Leveraging molecule database with metabolic stability data to elucidate new stable structures
Hospitality/ServiceInventory management/dynamic pricingPromos/upgrades/offers Table management & reservations Workforce management (also applies to lots of verticals)
Electrical grid distributionKeep AC frequency as constant as possibleSeems like a very "online" algorithmManufacturingSensor data to look at failuresQuality managementIdentifying out-of-bounds manufacturingVisual inspection/computer visionOptimal run speeds Demand forecasting/inventory management Warranty/pricing
TravelAircraft schedulingSeat mgmt, gate mgmt Air crew scheduling Dynamic pricing Customer complain resolution (give points in exchange) Call center stuff Maintenance optimization Tourism forecasting
AgricultureYield management (taking sensor data on soil quality - common in newer John Deere et al truck models and determining what seed varieties, seed spacing to use etcMall OperatorsPredicting tenants capacity to pay based on their sales figures, their industryPredicting the best tenant for an open vacancy to maximise over all sales at a mall
EducationAutomated essay scoringUtilitiesOptimise Distribution Network Cost Effectiveness (balance Capital 7 Operating Expenditure)Predict Commodity RequirementsOtherSentiment analysisLoyalty programs Sensor dataAlertingWhat's going to fail? De duplication Procurement
Use Cases That Need Fleshing OutProcurementNegotiation & vendor selectionAre we buying from the best producerMarketingDirect Marketing
- Response rates
- Segmentations for mailings
- Reactivation likelihood
- Discount targeting
- Phone marketing
- Generally as a follow-up to a DM or a churn predictor
- Email Marketing
HealthcareCRM & utilization optimizationClaims coding Forumlary determination and pricing How do I get you to use my card for auto-pay? Paypal? etc. Unsolved. FinanceRisk analysisAutomating Excel stuff/summary reports