Thursday, 25 September 2014

Why Data mining is still a powerful tool to help companies

The ability of Data mining technologies to sift through volumes of data and arrive at predictive information to empower businesses can in no way be undermined. The advent of new techniques and technologies has made the practice more affordable by organizations both big and small. The new technologies have not only helped in reducing the overhead costs of running the data mining exercise, but also simplified the practice making it more accessible for smaller and mid-size companies employ it in their organizational processes. In the current era, information is power and Web Data Mining Technologies are stretching the limits of their capabilities to help organizations acquire that power.

Data Mining Ensures Better Business Decisions
Organizations usually have access to large databases which store millions of historical data record. Traditional practices of hands-on analysis of patterns and trends of all available data proved to be too cumbersome to be pursued and were soon replaced with shorter and more selective data sets. This caused hidden patterns to remain hidden thus blocking off possibilities for organizations to grow and evolve. However, the advent of Data Mining as a technology that automates the identification of complex patterns in those databases changed all that. Organizations, now, are engaging in a thorough analysis of massive data sets and are moving ahead to extracting meanings and patterns from them. The analysis helps to unlock the hidden patterns and enables organizations to predict future market behavior and be geared with proactive and knowledge driven decisions for the benefit of their business.

Data Mining provides Fraud Detection Capabilities
Loss in Revenue has definite adverse impacts on a company’s morale. It slackens productivity and slows down their growth. Fraud is one of the common malpractices that eat into the organization’s revenue earning capability. Data Mining helps to prevent this and ensures a steady rise in their revenue graph. Data mining models can be built to predict consumer behavior patterns which help in effectively detecting fraud.

Data Mining Evolves to be Business Focused
Traditional Data Mining technologies were focused more on algorithms and statistics on delivering results which, though good failed to address the business issues appropriately. The new age data mining technologies, however, have evolved to become business focused. They understand the needs that drive the business and utilize the strong statistical algorithms built into their system to explore, collect, analyze and summarize data that can be made to work for better health of the business.

Data Mining has become more Granular
As technology evolves, organizations leverage the benefits it generates. Integration of fundamental data mining functionalists into database engines is one such innovation that has helped organizations to thoroughly benefit from its effect. Mining data from within the database instead of Web Data Extraction the data and then analyzing it saves valuable time for the organization. Moreover, as organizations can now drill down into more granular levels of the data therefore there is a higher possibility of ensuring accuracy. Moreover, as data mining software now have a more direct access to the data sets within the database, there is a higher possibility of ensuring a smoother workflow and hence a better performance.

Data mining, though capable of helping organizations generate good things, however, needs to be used intelligently. It has to be strongly aligned with the organization’s goals and principles in order to ensure appropriate performance that would strengthen the organization adequately.

1 comment:

  1. Nice post. I realy like your blog. Data Mining is an important activity for market research firms in their bid to come up with predictive analysis and thus leverage the power of data they extract from websites. A fine solution for such situations is for data mining companies to use web extractor online, an application that does everything they expect by way of gathering and preparing data seamlessly in the background.