Data Mining
Data Mining: Unearthing Hidden Business TreasuresUnearthing hidden treasures has always been a passion - an obsession - for the humankind and the greater the difficulty in obtaining a substance, the greater is the regarded value of that substance. Such is this obsession that not even the IT sector has been spared from it. And data mining is the legal name given to this obsession.
To be precise, data mining is a self-explanatory term wherein “mine” refers to the data warehouse, which contains raw data and the process of digging into this mine to extract relevant data is what we call data mining. Now, isn’t that analogous to digging a coal mine or a gold mine to extract the prized material?
The answer is NO. And the reason is that a data warehouse is not a natural mine that could be reduced to a cipher through regular consumption. On the contrary, by virtue of the availability of immense storage space at low costs, the wealth of this artificial mine, data warehouse, increases with time. And this what makes data mining even more important.
So, data mining is not equivalent to gold mining, however, there is one more theory that could perhaps perfectly explain the importance of data mining in the business world. And the theory is -history repeats itself.
Yes, when it comes to analyzing business, no one can deny that past data is extremely important. It is because, more often than not, customers are destined to behave in a manner as they did earlier and understanding the customer mentality is what business analysis is all about. Moreover, an intelligent view of the past data does enable you to form an opinion about what the future market trends would be and how you should change your business processes to remain alive in the competition.
The evolution of this phenomenal concept, data mining, is a result of a long, dedicated research and product development supported by technologies, such as SAN and NAS, which facilitate storage and access to large volumes of data. The maturity of these technologies, coupled with high-performance relational database engines, makes data mining a practical idea.
Powered by sophisticated algorithms and hardware technologies that support massive data collection and complex processing, data mining is now on the verge of being applied in the business community on a large scale.
More recently, the IT sector has given birth to technologies that allows users navigate through business data in real time. And data mining capitalizes on these technical breakthroughs to take its evolution beyond retrospective data access and navigation to proactive information delivery.
Data mining, in collaboration with data analysis and business intelligence, provides a method for users to anticipate future trends from analyzing past patterns in organizational data. An implementation of data mining software in your organization will help you uncover inherent trends and tendencies in historical information and will provide room for statistical predictions, groupings, and classifications of data.
With accurate knowledge about the trends and tendencies solving business decision-making problems becomes a lot easier and you are placed in a position wherein you can take proactive and knowledge driven decisions.
For all the benefits that it brings in, data mining can easily be regarded as an effective business solution. Ironically though, it is not so. Data mining is just another technology that extends statistics and embraces a few artificial intelligence and machine learning twists.
posted by navneet biet @ 1:27 AM
0 comments
