IBM Data Science Practice Test

When planning your business approach, which of the following activities is essential?

1. Decide which deep learning model will work

2. Reduce costs

3. Perform demand planning for offerings

4. Gather more data

The correct answer is: Perform demand planning for offerings

Choosing to perform demand planning for offerings is essential when planning a business approach because it directly relates to understanding market needs and aligning resources effectively. Demand planning involves forecasting customer demand, which helps ensure that a business can meet this demand without overextending its resources. By analyzing historical data and market trends, businesses can optimize their inventory levels, production schedules, and supply chain operations. This ensures that they are equipped to provide the right products or services at the right time, thereby enhancing customer satisfaction and operational efficiency. In contrast, while selecting a deep learning model (the first option) is important in the context of specific data science projects, it is not fundamental to the high-level planning of a business approach. Reducing costs (the second option) is a goal of many businesses, but it often follows after a clear understanding of demand and strategy is established. Similarly, gathering more data (the fourth option) might be beneficial, but it is not essential in the initial strategic planning stage; it becomes more relevant during execution or analysis phases. Thus, demand planning stands out as the cornerstone activity in creating a robust business plan.