Book Image

The Art of Data-Driven Business

By : Alan Bernardo Palacio
Book Image

The Art of Data-Driven Business

By: Alan Bernardo Palacio

Overview of this book

One of the most valuable contributions of data science is toward helping businesses make the right decisions. Understanding this complicated confluence of two disparate worlds, as well as a fiercely competitive market, calls for all the guidance you can get. The Art of Data-Driven Business is your invaluable guide to gaining a business-driven perspective, as well as leveraging the power of machine learning (ML) to guide decision-making in your business. This book provides a common ground of discussion for several profiles within a company. You’ll begin by looking at how to use Python and its many libraries for machine learning. Experienced data scientists may want to skip this short introduction, but you’ll soon get to the meat of the book and explore the many and varied ways ML with Python can be applied to the domain of business decisions through real-world business problems that you can tackle by yourself. As you advance, you’ll gain practical insights into the value that ML can provide to your business, as well as the technical ability to apply a wide variety of tried-and-tested ML methods. By the end of this Python book, you’ll have learned the value of basing your business decisions on data-driven methodologies and have developed the Python skills needed to apply what you’ve learned in the real world.
Table of Contents (17 chapters)
Part 1: Data Analytics and Forecasting with Python
Part 2: Market and Customer Insights
Part 3: Operation and Pricing Optimization

Understanding product recommendation systems

Now that we have identified the customers with decreasing consumption, we can create specific product recommendations for them. How do you recommend products? In most cases, we can do this with a recommender system, which is a filtering system that attempts to forecast and display the products that a user would like to purchase as what makes up a product suggestion. The k-nearest neighbor method and latent factor analysis, which is a statistical method to find groups of correlated variables, are the two algorithms utilized in collaborative filtering. Additionally, with collaborative filters, the system learns the likelihood that two or more things will be purchased collectively. A recommender system’s goal is to make user-friendly recommendations for products in the same way that you like. Collaborative filtering approaches and content-based methods are the two main categories of techniques available to accomplish this goal.