What is a Data Scientist?

A Data Scientist tries to generate added value from data using statistical methods. They try to find suitable raw data and algorithms that can solve an existing business problem. Machine Learning approaches can also be used in this process, among other things.

What are the tasks?

Data Scientists are needed to bring order to the large and unstructured data volumes of companies. This is still a relatively new occupational field, so it is difficult to define tasks precisely, as the fields of activity can change from job to job.

As a Data Scientist, you are usually confronted with a concrete problem. Your task is to be able to make a forecast for the future based on data. Therefore, the first step is to identify and evaluate suitable data sources. In most cases, the information is not directly in a format to be used further. Therefore, the data must be prepared before it can be analyzed for patterns using statistical methods and data mining algorithms. From these, reliable forecasts can be derived, which have to be presented and explained to the stakeholders.

The tasks can be summarized as follows:

Identification and investigation of data sources within an organization
Selecting the appropriate information for a use case
Finding patterns in the data from which added value can be generated
Using the patterns found to make predictions for the future that are as accurate as possible

In which Industries do Data Scientists work?

For the time being, there is no fixed industry for data scientists. Such employees are needed in all companies that generate large amounts of data and need to analyze it in a targeted manner. Data scientists are often hired when existing processes are to be analyzed and optimized. This can be in a wide variety of industries and companies. One area of application that we would like to highlight in this article is e-commerce.

In this area, there are countless use cases in which your skills and knowledge as a data scientist are in demand:

You can develop algorithms that help make the store search better. This includes, for example, sorting the results list according to relevance for the respective customer and dynamically adjusting the prices to entice the user to buy. All of this, of course, has to happen data-driven and cannot just happen randomly.
Data mining results can also be used to provide recommendations that are as targeted as possible. Depending on which products and content pages the user has looked at so far, the set of relevant products changes.
Finally, there is advertising that happens outside the actual online store, for example, through an e-mail newsletter. Current programs do this by sending standardized messages either to all customers or slightly personalized emails to larger clusters of customers. A data-driven algorithm, on the other hand, can decide when to send an email to a particular customer, with what text, and with which products.

What skills should you bring with you?

A Data Scientist bundles a lot of skills from a wide variety of fields. By far the most important is probably a strong knowledge of mathematics and statistics. After all, many data mining algorithms have their origins in statistics, and in order to apply them correctly, these basics must be understood. In addition, a data scientist needs a good knowledge of programming languages such as R or Python in order to be able to convert ideas and solution approaches into concrete algorithms.

In addition, you bring the necessary communication skills and business understanding to be able to communicate the results understandably even to an audience outside the field. Furthermore, business acumen is needed so that your projects also bring the company forward economically and the benefits exceed the costs.

Which concepts are used by a Data Scientist?

As data science is essentially a field that revolves around statistical analysis and modeling, statistical concepts are the foundation of data science. Here are some of the statistical concepts that a data scientist must be well-versed in:

Descriptive and Inferential Statistics: A data scientist should have a solid understanding of both descriptive statistics, which provides a summary of the data, and inferential statistics, which allows us to make inferences about a population based on a sample.
Probability Theory: Probability theory is a branch of mathematics that is used to describe random events. A data scientist must have a strong grasp of probability theory to understand the likelihood of certain outcomes and to make informed decisions based on that likelihood.
Regression Analysis: Regression analysis is a statistical method used to establish a relationship between a dependent variable and one or more independent variables. A data scientist uses regression analysis to build predictive models that can be used to make informed decisions.
Hypothesis Testing: Hypothesis testing is used to determine whether a hypothesis about a population is likely to be true or not. Data scientists use hypothesis testing to draw conclusions about data and to make informed decisions.
Time Series Analysis: Time series analysis is a statistical technique used to analyze time-dependent data. Data scientists use time series analysis to identify patterns and trends in data over time.
Bayesian Statistics: Bayesian statistics is a branch of statistics that involves the use of probability theory to make decisions based on uncertain data. A data scientist uses Bayesian statistics to make decisions when there is uncertainty in the data.
Machine Learning: Machine learning is a type of artificial intelligence that involves training algorithms to make predictions or decisions based on data. A data scientist must have a solid understanding of machine learning techniques and algorithms to build predictive models that can be used to make informed decisions.

Overall, data scientists must have a strong foundation in statistical concepts and methodologies to be successful in their work.

What kind of education is needed?

The educational opportunities for Data Scientists are very diverse and increase with each year this profession is in demand. Basically, most data scientists have a bachelor’s degree in data science or a comparable field to learn the basics of programming, statistics, and mathematics.

If you want to deepen this knowledge even further, you can continue your studies with a master’s degree and specialize in various areas, such as business analytics or machine learning.

In addition, it is also possible to complete computer science-based vocational training and then develop into a Data Scientist via various specialized further training courses. Furthermore, various distance-learning universities also offer further education in the field of Data Science. The specific requirements for a position must be clarified in each individual case and deemed sufficient by the hiring company.

What are the differences between a Business Analyst and a Data Scientist?

While there is some overlap between the roles of a Business Analyst and a Data Scientist, there are also some important differences:

Focus: Business Analysts typically focus on the business side of things, such as identifying business problems and proposing solutions. Data Scientists, on the other hand, tend to focus on the technical side of things, such as collecting, analyzing, and interpreting data.
Tools and Techniques: Business Analysts typically use tools such as spreadsheets, flowcharts, and process maps to analyze data and identify patterns. Data Scientists, on the other hand, typically use more advanced tools and techniques, such as machine learning algorithms and statistical models.
Data Sources: Business Analysts typically work with structured data, such as sales figures or customer demographic data. Data Scientists, on the other hand, often work with unstructured data, such as text or images.
Scope: Business Analysts typically focus on a specific business unit or department, while Data Scientists often work on larger projects that span multiple units and departments.

Overall, while there is some overlap between the roles of a business analyst and a data scientist, they tend to have different focuses, tools and techniques, data sources, and areas of work.

This is what you should take with you

A data scientist uses statistical methods to create added value from data.
Their tasks include selecting suitable data sources, examining the information, and clearly presenting the results.
Data scientists are needed in almost all industries where large amounts of data are available for analysis.
As a data scientist, you should have a good knowledge of mathematics and statistics, as well as sufficient programming skills.