Traditionally, organizations use data tactically – to manage. For the competitive, strong organizations use data strategically – to expand operations to improve profitability, reduce costs, and market more effectively. Data mining (DM) makes information assets that an organization can use these strategic objectives.
In this article we have some important questions to officials on data mining deal. These include:
What is data mining?
It can for my organization?
Business Definition of Data Mining
Data mining is a business decision support systems is new component architecture. Query and reporting as it complements and interlocks with other DSS capabilities, on-line analytical processing, data visualization, and traditional statistical analysis. These other DSS technologies are usually retrospective. He reports, tables, and provide graphically what happened in the do we have ten percent increase in sales to reach your goals? ”
We define data mining as “hidden patterns in data-driven discovery and modeling of large amounts of data.” Data mining is different from the retrospective technologies, because this model produces models that capture and represent patterns hidden in data. There is also a user automatically to discover patterns and the model is in fact without knowing what he was looking for, you can build. Models are both descriptive as possible.
They know why things happen and probably will happen. A user can create “what – if” that can be requested directly from the database or warehouse data mining model to the questions. Examples “Which customers are likely to open a money market account, ‘or’ the customer to cancel our service fee if we introduce the” expected lifetime value of each customer account, “What?”
DM associated with information technology, neural networks, genetic algorithms, fuzzy logic, and rules induction. It is beyond the scope of this article to elaborate on these technologies. Instead, we focus on business needs and how these needs can translate into dollars for the data mining solutions.
Mapping solutions for business and profit
What data mining can do for your organization? Expansion of the company, profitability, cost, and sales and marketing: introduction, we use the data for an organization to describe the strategic opportunities. These possibilities are many cases where companies have successfully implemented through the DM to consider very specific. Let’s take one example in Social Networking.
Twitter applications such as inside a lot of people “tweets”, as stated, Linkedin is unstructured. “Tweets” updated in such applications are similar to our own thought processes. Data mining techniques in data mining is properly defined. For example, a product which color you like most in the survey included such questions? Feature that most do not like you, so on and so forth.
By writing a standard OLAP processing logic of critical business intelligence in order to obtain the required reports to offer. In this case, there is also data definition, data entry and data analysis is a considerable amount of effort spent. Tweets many unstructured information, Facebook etc. To demonstrate the challenges of a mining system that will build on both the probability and statistics will be based.