Data science involves understanding and solving business problems using data. The first step in a data science project is the concept study, which involves understanding the problem, the business model, available data, and project goals. This stage includes defining specifications, identifying the end goal, determining the budget, and researching similar solutions. The next step is data preparation, where raw data is cleaned, transformed, and made suitable for analysis. This involves exploring the data, identifying missing values, and handling inconsistencies. Data scientists use various techniques to prepare data for analysis and modeling.