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Defining Data Science: The What,

Where and How of Data Science
Articles 17 min read

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The What, Where and How of Data Science

Data science – a universally recognizable term that is in

desperate need of dissemination.

Data Science is a term that escapes any single complete

definition, which makes it difficult to use, especially if the

goal is to use it correctly. Most articles and publications use

the term freely, with the assumption that it is universally

understood. However, data science – its methods, goals, and

applications – evolve with time and technology. Data science

25 years ago referred to gathering and cleaning datasets

then applying statistical methods to that data. In 2018, data

science has grown to a field that encompasses data analysis,

predictive analytics, data mining, business intelligence,

machine learning (https://365datascience.com/data-

science-vs-ml-vs-data-analytics/), and so much more.

In fact, because no one definition fits the bill seamlessly, it is

up to those who do data science to define it.

(https://365datascience.com/interview-philippe-van-impe/)
Recognising the need for a clear-cut explanation of data

science, the 365 Data Science (https://365datascience.com)

Team designed the What-Where-Who infographic

(https://365datascience.com/wp-

content/uploads/2018/05/365-Data-Science-

Infographic.png). We define the key processes in data

science and disseminate the field. Here is our interpretation

of data science.
(https://365datascience.com/wp-

content/uploads/2018/05/365-Data-Science-

Infographic.jpg)

Of course, this might look like a lot of overwhelming

information, but it really isn’t. In this article, we will take data

science apart and we will build it back up to a coherent and

manageable concept. Bear with us!

Data science
(https://365datascience.com/research-
into-1001-data-scientist-
profiles/), ‘explained in under a
minute’, looks like this.
You have data. To use this data to inform your decision-

making, it needs to be relevant, well-organised, and

preferably digital. Once your data is coherent, you proceed

with analysing it, creating dashboards and reports to

understand your business’s performance better. Then you set

your sights to the future and start generating predictive

analytics. With predictive analytics, you assess potential

future scenarios and predict consumer behaviour in creative

ways.

Author’s note: You can learn more about how data science and

business interact in our article 5 Business Basics for Data

Scientists (https://365datascience.com/5-business-basics-

data-scientists/). 

But let’s start at the beginning.

The Data in Data Science

Before anything else, there is always data. Data is the

foundation of data science; it is the material on which all the

analyses are based. In the context of data science, there are

two types of data: traditional, and big data.

(https://365datascience.com/techniques-for-processing-

traditional-and-big-data/)

Traditional data is data that is structured and stored in

databases (https://365datascience.com/sql-databases-data-

table/) which analysts can manage from one computer; it is

in table format, containing numeric or text values. Actually,

the term “traditional” is something we are introducing for

clarity. It helps emphasize the distinction between big data

and other types of data.

Big data, on the other hand, is… bigger than traditional data,

and not in the trivial sense. From variety (numbers, text, but

also images, audio, mobile data, etc.), to velocity (retrieved

and computed in real time), to volume (measured in tera-,

peta-, exa-bytes), big data is usually distributed across a

network of computers.

That said, let’s define the What-Where-and-Who in data

science each is characterized by.

What do you do to Data in Data

Science?
Traditional data in Data Science

Traditional data is stored in relational database

(https://365datascience.com/sql-relational-databases/)

management systems.
(https://365datascience.com/wp-

content/uploads/2018/05/WHAT-min-e1541666669905.jpg)

That said, before being ready for processing, all data goes

through pre-processing. This is a necessary group of

operations that convert raw data into a format that is more

understandable and hence, useful for further processing.

Common processes are:

Collect raw data and store it on a server

This is untouched data that scientists cannot analyse

straight away. This data can come from surveys, or

through the more popular automatic data collection

paradigm, like cookies on a website.

Class-label the observations

This consists of arranging data by category or labelling

data points to the correct data type. For example,

numerical, or categorical

(https://365datascience.com/numerical-categorical-

data/).

Data cleansing/data scrubbing

Dealing with inconsistent data, like misspelled categories

and missing values.

Data balancing
 If the data is unbalanced such that the categories contain

an unequal number of observations and are thus not

representative, applying data balancing methods, like

extracting an equal number of observations for each

category, and preparing that for processing, fixes the

issue.

Data shuffling

Re-arranging data points to eliminate unwanted patterns

and improve predictive performance further on. This is

applied when, for example, if the first 100 observations in

the data are from the first 100 people who have used a

website; the data isn’t randomised, and patterns due to

sampling emerge.

Big Data in Data Science

When it comes to big data and data science, there is some

overlap of the approaches used in traditional data handling,

but there are also a lot of differences.

First of all, big data is stored on many servers and is infinitely

more complex.

(https://365datascience.com/wp-

content/uploads/2018/05/WHAT_BIG_DATA-min.jpg)
In order to do data science with big data, pre-processing is

even more crucial, as the complexity of the data is a lot

larger. You will notice that conceptually, some of the steps

are similar to traditional data pre-processing, but that’s

inherent to working with data

(https://365datascience.com/operators-in-sql/).

Collect the data

Class-label the data

Keep in mind that big data is extremely varied, therefore

instead of ‘numerical’ vs ‘categorical’, the labels are ‘text’,

‘digital image data’, ‘digital video data’, digital audio data’,

and so on.

Data cleansing

The methods here are massively varied, too; for example,

you can verify that a digital image observation is ready for

processing; or a digital video, or…

Data masking

When collecting data on a mass scale, this aims to ensure

that any confidential information in the data remains

private, without hindering the analysis and extraction of

insight. The process involves concealing the original data

with random and false data, allowing the scientist to

conduct their analyses without compromising private

details. Naturally, the scientist can do this to traditional

data too, and sometimes is, but with big data the

information can be much more sensitive, which masking a

lot more urgent.

Where does data come from?

Traditional data may come from basic customer records, or

historical stock price information.

Big data, however, is all-around us. A consistently growing

number of companies and industries use and generate big

data. Consider online communities, for example, Facebook,

Google, and LinkedIn; or financial trading data. Temperature

measuring grids in various geographical locations also

amount to big data, as well as machine data from sensors in

industrial equipment. And, of course, wearable tech.

Who handles the data?

The data specialists who deal with raw data and pre-

processing, with creating databases, and maintaining them

can go by a different name. But although their titles are

similar sounding, there are palpable differences in the roles

they occupy. Consider the following.

Data Architects and Data Engineers (and Big Data

Architects, and Big Data Engineers, respectively)
are crucial in the data science market.

The former creates the database from scratch; they design

the way data will be retrieved, processed, and consumed.

Consequently, the data engineer uses the data architects’

work as a stepping stone and processes (pre-processes) the

available data. They are the people who ensure the data is

clean and organized and ready for the analysts to take over.

The Database Administrator, on the other hand, is the person

who controls the flow of data into and from the database. Of

course, with Big Data almost the entirety of this process is

automated, so there is no real need for a human

administrator. The Database Administrator deals mostly with

traditional data.

That said, once data processing is done, and the databases

are clean and organised, the real data science begins.

Data Science
There are also two ways of looking at data: with the intent to

explain behaviour that has already occurred, and you have

gathered data for it; or to use the data you already have in

order to predict future behaviour that has not yet happened.

(https://365datascience.com/wp-

content/uploads/2018/05/WHEN_WHY-min-1024x490-

e1541666676211.jpg)

Data Science explaining the past

Business Intelligence

Before data science jumps into predictive analytics, it must

look at the patterns of behaviour the past provides, analyse

them to draw insight and inform the path for forecasting.

Business intelligence focuses precisely on this: providing

data-driven answers to questions like: How many units were

sold? In which region were the most goods sold? Which type of

goods sold where? How did the email marketing perform last

quarter in terms of click-through rates and revenue generated?

How does that compare to the performance in the same quarter

of last year?

Although Business Intelligence does not have “data science”

in its title, it is part of data science, and not in any trivial

sense.

What does Business Intelligence

do?
Of course,  Business Intelligence Analysts can apply Data

Science to measure business performance. But in order for

the Business Intelligence Analyst to achieve that, they must

employ specific data handling techniques.

The starting point of all data science is data. Once the

relevant data is in the hands of the BI Analyst (monthly

revenue, customer, sales volume, etc.), they must quantify

the observations, calculate KPIs and examine measures to

extract insights from their data.

Data Science is about telling a story

Apart from handling strictly numerical information, data

science, and specifically business intelligence, is about

visualizing the findings, and creating easily digestible images

supported only by the most relevant numbers. After all, all

levels of management should be able to understand the

insights from the data and inform their decision-making.

(https://365datascience.com/wp-

content/uploads/2018/05/WHAT_BUSINESS_INTELLIGENCE-

min-e1541666647489.jpg)

Business intelligence analysts create dashboards and

reports, accompanied by graphs, diagrams, maps, and other

comparable visualisations to present the findings relevant to

the current business objectives.

To find out more about data visualization, check out this

article on chart types (https://365datascience.com/chart-

types-and-how-to-select-the-right-one/) or go to our

tutorials How to Visualize Numerical Data with Histograms

(https://365datascience.com/numerical-data-histogram/)

and Vizualizing Data with Bar, Pie and Pareto Charts

(https://365datascience.com/bar-pie-pareto-charts/).

Where is business intelligence

used?
Price optimisation and data science

Notably, analysts apply data science to inform things like

price optimisation techniques. They extract the relevant

information in real time, compare it with historicals, and take

actions accordingly. Consider hotel management behaviour:

management raise room prices during periods when many

people want to visit the hotel and reduce them when the goal

is to attract visitors in periods with low demand.

Inventory management and data science

Data science, and business intelligence, are invaluable for

handling over and undersupply. In-depth analyses of past

sales transactions identify seasonality patterns and the times

of the year with the highest sales, which results in the

implementation of effective inventory management

techniques that meet demands at minimum cost.

Who does the BI branch of data

science?
A BI analyst focuses primarily on analyses and reporting of

past historical data.

The BI consultant is often just an ‘external BI analysts’. Many

companies outsource their data science departments as they

don’t need or want to maintain one. BI consultants would be

BI analysts had they been employed, however, their job is

more varied as they hop on and off different projects. The

dynamic nature of their role provides the BI consultant with a

different perspective, and whereas the BI Analyst has highly

specialized knowledge (i.e., depth), the BI consultant

contributes to the breadth of data science.

The BI developer is the person who handles more advanced

programming tools, such as Python

(https://365datascience.com/python-programming-

explained/) and SQL (https://365datascience.com/why-

learn-sql/), to create analyses specifically designed for the

company. It is the third most frequently encountered job

position in the BI team.

Data Science predicting the

future
Predictive analytics in data science rest on the shoulders of

explanatory data analysis, which is precisely what we were

discussing up to this point. Once the BI reports and

dashboards have been prepared and insights – extracted

from them – this information becomes the basis for

predicting future values. And the accuracy of these

predictions lies in the methods used.

Recall the distinction between traditional data and big

data in data science.

We can make a similar distinction regarding predictive

analytics and their methods: traditional data science methods

vs. Machine Learning

(https://365datascience.com/introduction-machine-

learning/). One deals primarily with traditional data, and the

other – with big data.

Traditional forecasting methods

in Data Science: What are they?
Traditional forecasting methods comprise the classical

statistical methods for forecasting – linear regression

(https://365datascience.com/linear-regression/) analysis,

logistic regression analysis, clustering, factor analysis, and

time series. The output of each of these feeds into the more

sophisticated machine learning analytics, but let’s first review

them individually.

A quick side-note. Some in the data science industry refer to

several of these methods as machine learning too, but in this

article machine learning refers to newer, smarter, better

methods, such as deep learning.

(https://365datascience.com/wp-

content/uploads/2018/05/WHAT_TRADITIONAL_METHODS-

min-e1541666663191.jpg)

Linear regression

In data science, the linear regression model

(https://365datascience.com/explainer-video/simple-linear-

regression-model/) is used for quantifying causal

relationships among the different variables included in the

analysis. Like the relationship between house prices, the size

of the house, the neighborhood, and the year built. The

model calculates coefficients with which you can predict the

price of a new house, if you have the relevant information

available.
If you’re curious about the geometrical representation of the

simple linear regression model, check out the linked tutorial

(https://365datascience.com/explainer-video/linear-

regression-model/).

Logistic regression

Since it’s not possible to express all relationships between

variables as linear, data science makes use of methods like

the logistic regression to create non-linear models. Logistic

regression operates with 0s and 1s. Companies apply logistic

regression algorithms to filter job candidates during their

screening process. If the algorithm estimates that the

probability that a prospective candidate will perform well in

the company within a year is above 50%, it would predict 1, or

a successful application. Otherwise, it will predict 0.

Cluster analysis

This exploratory data science technique is applied when the

observations in the data form groups according to some

criteria. Cluster analysis takes into account that some

observations exhibit similarities, and facilitates the discovery

of new significant predictors, ones that were not part of the

original conceptualisation of the data.

Factor analysis

If clustering is about grouping observations together, factor

analysis is about grouping features together. Data science

resorts to using factor analysis to reduce the dimensionality

of a problem. For example, if in a 100-item questionnaire

each 10 questions pertain to a single general attitude, factor

analysis will identify these 10 factors, which can then be used

for a regression that will deliver a more interpretable

prediction. A lot of the techniques in data science are

integrated like this.

Time series analysis

Time series is a popular method for following the

development of specific values over time. Experts in

economics and finance use it because their subject matter is

stock prices and sales volume – variables that are typically

plotted against time.

Where does data science find

application for traditional
forecasting methods?
The application of the corresponding techniques is extremely

broad; data science is finding a way into an increasingly large

number of industries. That said, two prominent fields deserve

to be part of the discussion.

User experience (UX) and data science

When companies launch a new product, they often design

surveys that measure the attitudes of customers towards that

product. Analysing the results after the BI team has

generated their dashboards includes grouping the

observations into segments (e.g. regions), and then analysing

each segment separately to extract meaningful predictive

coefficients. The results of these operations often

corroborate the conclusion that the product needs slight but

significantly different adjustments in each segment in order

to maximise customer satisfaction.

Forecasting sales volume

This is the type of analysis where time series comes into play.

Sales data has been gathered until a certain date, and the

data scientist wants to know what is likely to happen in the

next sales period, or a year ahead. They apply mathematical

and statistical models and run multiple simulations; these

simulations provide the analyst with future scenarios. This is

at the core of data science, because based on these

scenarios, the company can make better predictions and

implement adequate strategies.

Who uses traditional forecasting
methods?
The data scientist (https://365datascience.com/data-

scientist-profile-2019/). But bear in mind that this title also

applies to the person who employs machine learning

techniques for analytics, too. A lot of the work spills from one

methodology to the other.

The data analyst, on the other hand, is the person who

prepares advanced types of analyses that explain the

patterns in the data that have already emerged and overlooks

the basic part of the predictive analytics. Of course, if you’re

eager to learn more details about what a data scientist does

and how their job compares to other career paths in the data

science field, read our ultimate guide on how to start a

career in data science (https://365datascience.com/career-

data-science-ultimate-guide/).

Machine Learning and Data

Science
Machine learning is the state-of-the-art approach to data

science. And rightly so.

The main advantage machine learning has over any of the

traditional data science techniques is the fact that at its core

resides the algorithm. These are the directions a computer

uses to find a model that fits the data as well as possible. The

difference between machine learning and traditional data

science methods is that we do not give the computer

instructions on how to find the model; it takes the algorithm

and uses its directions to learn on its own how to find said

model. Unlike in traditional data science, machine learning

needs little human involvement. In fact, machine learning,

especially deep learning algorithms are so complicated, that

humans cannot genuinely understand what is happening

“inside”.
What is machine learning in data
science?
A machine learning algorithm is like a trial-and-error process,

but the special thing about it is that each consecutive trial is

at least as good as the previous one. But bear in mind that in

order to learn well, the machine has to go through hundreds

of thousands of trial-and-errors, with the frequency of errors

decreasing throughout.

(https://365datascience.com/wp-

content/uploads/2018/05/screen-min.jpg)

Once the training is complete, the machine will be able to

apply the complex computational model it has learned to

novel data still to the result of highly reliable predictions.

There are three major types of machine learning: supervised,

unsupervised, and reinforcement learning.

(https://365datascience.com/wp-

content/uploads/2018/05/WHAT_MACHINE_LEARNING-

min-e1541666654722.jpg)

Supervised learning

Supervised learning rests on using labeled data. The machine

gets data that is associated with a correct answer; if the

machine’s performance does not get that correct answer, an

optimization algorithm adjusts the computational process,

and the computer does another trial. Bear in mind that,

typically, the machine does this on 1000 data points at once.

Support vector machines, neural networks, deep learning,

random forest models, and Bayesian

(https://365datascience.com/bayesian-vs-frequentist-

approach/) networks are all instances of supervised learning.

Unsupervised learning

When the data is too big, or the data scientist is under too

much pressure for resources to label the data, or they do not

know what the labels are at all, data science resorts to using

unsupervised learning. This consists of giving the machine

unlabeled data and asking it to extract insights from it. This

often results in the data being divided in a certain way

according to its properties. In other words, it is clustered.

Unsupervised learning is extremely effective for discovering

patterns in data, especially things that humans using

traditional analysis techniques would miss.

Data science often makes use of supervised and

unsupervised learning together, with unsupervised learning

labelling the data, and supervised learning finding the best

model to fit the data. One instance of this is semi-supervised

learning.

Reinforcement learning

This is a type of machine learning where the focus is on

performance (to walk, to see, to read), instead of accuracy.

Whenever the machine performs better than it has before, it

receives a reward, but if it performs sub-optimally, the

optimization algorithms do not adjust the computation. Think

of a puppy learning commands. If it follows the command, it

gets a treat; if it doesn’t follow the command, the treat

doesn’t come. Because treats are tasty, the dog will gradually

improve in following commands. That said, instead of

minimizing an error, reinforcement learning maximizes a

reward.

Where is Machine Learning

applied in the world of data
science & business?
Fraud detection

With machine learning, specifically supervised learning,

banks can take past data, label the transactions as legitimate,

or fraudulent, and train models to detect fraudulent activity.

When these models detect even the slightest probability of

theft, they flag the transactions, and prevent the fraud in real

time.

Client retention
With machine learning algorithms, corporate organizations

can know which customers may purchase goods from them.

This means the store can offer discounts and a ‘personal

touch’ in an efficient way, minimizing marketing costs and

maximizing profits. A couple of prominent names come to

mind: Google, and Amazon.

Who uses machine learning in

data science?
As mentioned above, the data scientist is deeply involved in

designing machine algorithms, but there is another star on

this stage.

The machine learning engineer. This is the specialist who is

looking for ways to apply state-of-the-art computational

models developed in the field of machine learning into

solving complex problems such as business tasks, data

science tasks, computer vision, self-driving cars, robotics,

and so on.

Programming languages and

Software in data science
Two main categories of tools are necessary to work with data

and data science: programming languages and software.

(https://365datascience.com/wp-

content/uploads/2018/05/365-Data-Science-

Infographic.jpg)

Programming languages in data science

Knowing a programming language enables the data scientist

to devise programs that can execute specific operations. The

biggest advantage programming languages have is that we

can reuse the programs created to execute the same action

multiple times.
R, Python, and MATLAB, combined with SQL, cover most of

the tools used when working with traditional data, BI, and

conventional data science.

R and Python are the two most popular tools across all data

science sub-disciplines. Their biggest advantage is that they

can manipulate data and are integrated within multiple data

and data science software platforms. They are not just

suitable for mathematical and statistical computations; they

are adaptable.

In fact, Python was deemed “the big Kahuna” of 2019 by IEEE

(https://www.ieee.org/) (the world’s largest technical

professional organization for the advancement of technology)

and was listed at number 1 in its annual interactive ranking of

the Top 10 Programming Languages. That said, if you want to

learn everything about the most sought-after programming

language, check out our all-encompassing Python

Programming Guide (https://365datascience.com/learning-

python-programming/).

SQL is king, however, when it comes to working with

relational database management systems,
because it was specifically created for that
purpose.

SQL is at its most advantageous when working with

traditional, historical data, for example when preparing a BI

analysis.

MATLAB is the fourth most indispensable tool for data

science. It is ideal for working with mathematical functions or

matrix manipulations.

Big data in data science is handled with the help of R and

Python, of course, but people working in this area are often

proficient in other languages like Java or Scala. These two

are very useful when combining data from multiple sources.

JavaScript, C, and C++, in addition to the ones mentioned

above, are often employed when the branch of data science

the specialist is working in involves machine learning. They

are faster than R and Python and provide greater freedom.

Author’s note: If you need to hone your programming skills,

you can visit our Python tutorials

(https://365datascience.com/blog/#python-tutorials) and

SQL tutorials (https://365datascience.com/blog/#sql-

tutorials).

Software in data science

In data science, the software or, software solutions, are tools

adjusted for specific business needs.

Excel is a tool applicable to more than one category—

traditional data, BI, and Data Science. Similarly, SPSS is a very

famous tool for working with traditional data and applying

statistical analysis.

Apache Hadoop, Apache Hbase, and Mongo DB, on the other

hand, are software designed for working with big data.

Power BI, SaS, Qlik, and especially Tableau are top-notch

examples of software designed for business intelligence

visualizations.

In terms of predictive analytics, EViews is mostly used for

working with econometric time-series models, and Stata—for

academic statistical and econometric research, where

techniques like regression, cluster, and factor analysis are

constantly applied.

This is Data Science

Data science is a slippery term that encompasses everything

from handling data – traditional or big – to explain patterns

and predict behavior. Data science is done through traditional

methods like regression and cluster analysis or through

unorthodox machine learning techniques.

It is a vast field, and we hope you are one step closer to

understanding how all-encompassing and intertwined with

human life it is.

Ready to take the first step towards a career in data

science?

Check out the complete Data Science Program today. We

also offer a free preview version of the Data Science

Program. You’ll receive 12 hours of beginner to advanced

content for free. It’s a great way to see if the program is right

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(https://365datascience.com/courses/)

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