All About Data Mining

Financial planning

Pulling out important information from big volume of data is what data mining is all about. The tools used for data mining are there mainly for the purpose of examining data from different perspectives and then, summarizing it to a useful database library. These tools on the other hand have become computer based applications in an effort to handle growing volume of data. There are instances that others are calling these as kpi metrics tools.

As concept, data mining has existed since the past and what used as data mining tools were actually manual processes. Later on, with the onset of hi-tech and fast computers, increased storage capacities and analytical software tools, automated tools were developed eventually which significantly improved the accuracy of data mining speed, analysis and at the same time, brought down the operation costs.

These methods for analytics companies are employed in order to facilitate major elements similar to pull out, convert as well as load data to warehouse system, collecting and handling data in database system, allow concerned personnel to acquire the data, do data analysis as well as data presentation in format that can be interpreted easily for further decision making. These methods of data mining are used in an effort to explore the associations, trends and correlations in stored data that are based generally on different types of relationships like for instance: associations or the simplest relationship between data, clusters or logical correlations used in categorizing the data collected, classes which is a certain predefined group drawn out and the data within it is searched based on the groups, sequential patterns that is used to help in predicting a certain behavior according to the observed trends in stored data.

The industries that cater heavily to consumers in the financial, retail, sports, entertainment, hospitality and the likes heavily depend on such methods of data mining for them to obtain quick answers to questions and at the same time, improve their business. Due to the reason that the tools help them to study and analyze consumer’s buying patterns, it enables them to create a strategy that can be made for future sales.

To give you a quick example, restaurants may want to study their consumer’s eating habits at different times of the day. Once they obtain the data, it is going to help them in deciding what menu to offer on different parts of the day. With data mining tools, it helps them a lot to draw out a business plan, discount plans, advertising strategy and everything in between to further boosts their operations and sales.

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