Data Mining
Every day companies create heaps of data which has to be stored, processed and analyzed, and the total amount skyrockets. Thanks to Moore’s Law, which holds true so far, the prices for storages and processing capacity decrease, making the storing and processing of such vast amounts of data possible and affordable. However, modern data sets can be so large that it might be impossible for humans to recognize and spot the underlying trends. Stated differently, a good analysis done by individuals is difficult if not even impossible.
 |
| Graphic 1: Huge Amount of Data |
So how can we analyze these data in an efficient and effective way?
Which tools can help us doing it?
For the answers to these questions data mining comes into play. Data mining is the process of using computers to identify hidden patterns, and to build models from large data sets. With the help of computers and automated searches, people are able to analyze data and get sufficient and helpful insights and results.
There are many areas where data mining can be used to analyze data. Some of the key areas are:
 |
| Graphic 2: Areas for Data Mining |
Hiring and promotion to determine characteristics which are related and consistent with employee success.
Fraud detection to uncover patterns being consistent with criminal activity.
Marketing and promotion targeting to examine which customers respond to which type of offer for which price and at what time.
Customer churn to find out which customers are likely to leave, and create and employ strategies and tactics to retain these customers.
Market basket analysis to identify which kind of products customers are likely to buy together or at the same time, in order to enable the company to cross-sell more of its products and services.
Collaborative filtering to make an experience of an individual customer personalized by basing it on the preferences and trends examines across similar customers.
Financial modeling to build trading systems to capitalize on historical trends.
Customer segmentation to analyze and find out which customers are most valuable to a firm.
Data mining seems to be quite helpful and usable in many areas. However, for data mining to work two critical conditions have to be met.
First of all the organization must have clean, well-organized, and consistent data, and second, the events in that data should reflect current and future trends in order to analyze and predict more reliable trends.
Graphic 1:
Original photo by gruppetto on wikimedia.org:
Original photo by Przykuta on Wikimedia.org:
Original photo by BJJ_White_Belt.svg on Wikimedia.org:
Modified by Nina Maria Scherl.
Graphic 2:
Original photo by Angie on wikimeida.org:
Modified by Nina Maria Scherl.
Keine Kommentare:
Kommentar veröffentlichen