Although many data science projects yield marginal gains (3%-7%), these modest improvements mainly benefit larger firms. Smaller companies might gain more from basic analytics and investing in technology solutions.
In my experience, the value of data science goes well beyond what some might consider a mere indulgence. Although small gains may seem minor, they often facilitate smarter decision-making and more efficient operations. My work on several projects demonstrated that even incremental improvements can lead to substantial competitive advantages, especially in industries with tight margins. The key is aligning data initiatives with business objectives so that every percentage point of improvement is directly tied to cost reduction or revenue growth.