Data Mining in Businesses

Data Mining in Businesses

Introduction

Data mining is a powerful technology that assists the companies with its great potential for focusing on the most significant information in their databases. Based on the technological dependence, companies are greatly interested in deployment of data mining. It is also regarded as KDD (Knowledge Discovery in Database) and is widely used by the organizations, enterprises and government. Data mining offers future predictions rather than focusing on past events as it incorporates machine learning, databases, statistics, neruo-computing and pattern recognition (Han, et.al. 2006). This paper presents the benefits of using data mining technology for organizational operations as it provides numerous benefits to government, businesses, society as well as individuals of the society.

Discussion

Benefits of Data Mining to the Businesses When Employing

Considering the business associated concerns, data mining has filtered the pointless information bulk of the company into valuable sets of information to be stored in the warehouses. Formerly, it was the responsibility of marketing services and utilities, and products while today with data mining customers are preferred in terms of their preferences and choices (Han, et.al. 2006).

Predictive Analytics to Understand the Behavior of Customers

For staying competitive, the retailers need to appropriately understand the consumer behavior. Data mining is best for predicting the behaviors of the customers. It helps in examining the wants and desires of the customers, so that the company may serve the customers to the most possible level. This is going to assist the company in improving sales and extending the relation with consumers. Predictive analytics combines statistics and mathematics with business and marketing for finding patterns in data. These patterns are then manipulated for reducing costs, improving processes, and increasing the response rates with boosted revenues (Elkan, 2010).

Association's Discovery in Products Sold to Customers

The interaction of companies with their customers is attaining more attention for sustaining the competiveness in market. Customers' response needs to be understood quickly without letting them prefer their rivals. Data mining is associated with the products that are sold to the customers. The customers respond appropriately to the company as their needs are appropriately served by the company's management. For instance, a grocery business uses data mining for analyzing its local business position; it will easily evaluate the major sales pertaining to the needs of the customers on daily basis. With this approach, the company will predict the future needs of its customers and will act accordingly. With its focus on data processing of large amount, the results of data mining will be more accurate. Therefore, the company requires having complex situations of more products for more customers to compete more actively in less response time (Putler & Krider, 2012).

Web Mining to Discover Business Intelligence from Web customers

Web mining is proficient in analyzing the data patterns on the basis of mining of content, structure and its usage on websites. This process is not solely dependent on mining of web, but it includes the process of clustering in which the data gathered is further ...