Reasons Why Companies are Obsessed with Data Mining
Data mining is easier to understand if you imagine the process of mining valuable earth resources like gold or diamonds. Just like in mining for minerals, the goal of data mining is to extract the most valuable pieces of information from outstandingly large data sets.
Why people are so interested in data mining? The answer is simple, it opens many opportunities for business, because it has predictive and descriptive powers, thus, it is the technology that can predict future and make it profitable.
A predictive power implies usage of different features to predict the value of a certain feature, and thus, find one or a few patterns that would be interesting, useful, and will possess a descriptive power.
Stages of Data Mining
The data mining process involves 5 steps of finding and extracting data, and transforming it into valuable information.
These steps are:
- Finding and identifying the source of valuable information;
- Choosing the data points that will be the subject of analysis;
- Extracting the information that is surely or possibly useful for business;
- Identifying as many key values out of the extracted data as possible;
- Reporting and making the results understandable.
People have created enormously massive quantities of data, and today it is like giant mountains with little treasure spots among the tons of what can be seen as garbage. By sticking to the plan and using the right data mining techniques and tools, one can mine data that has the ability to transform a small company into the new corporation.
Benefits of Data Mining
Data mining software is extensively valuable for business, because it helps to reveal hidden patters for personal usage. These patterns help to improve business relationships, because they are applied for making data analysis and predictions that open wider business opportunities.
Data mining concepts and techniques are beneficial for the variety of industries such as:
- Social Media
Undoubtedly, data mining has a good impact on business, because it:
- Improves planning and forecasting;
- Increases the quality of decision-making;
- Enhances safety and security;
- Brings competitive advantage;
- Reduces expenses;
- Helps to gain new customers;
- Perfects customer relationships;
- Contributes to the new products development.
For example, the retail industry can use genuine data mining procedures for getting and analyzing customer behavior and previous sales patterns in order to decide what products and services to offer in future as well as what business direction to choose and stick to. A marketing department of any company can mine data on customers using special tools and datasets for data mining so that a company can build the most converting marketing campaign and become one of the most profitable and competitive in the respective business field.
The data mining technology gives companies the power of knowledge. However, this technology is tricky, because many companies and separate individuals struggle to detect data mining algorithms and strategy that will help to benefit in business.
The ability to sort huge data sets in order to analyze information and predict future trends opens greater opportunities for companies in different industries is vastly beneficial, but such things don’t come easily. However, you can rely on data mining companies to get information or on our experts in data mining to get a versatile solution that would help your company to grow stronger. The variety of data mining tools like SAS, Python, good old Excel, and more make the process easier, but bring complications for beginners in this field, so if you’re one of them, just contact us and we’ll do all the hard work for you.