Data mining has become essential for companies because of its importance in decisions making. If you do not know the basic aspects of data mining, we will tell you how this tool can benefit your business.
¿What is Data Mining?
Data mining makes reference to the application of tools to decrypt specific information. In any case, it means to find patterns and tendencies from structured and unstructured data. That is why it is also known as the discovery of knowledge.
Just like science, data mining is almost 30 years old. Although it might seem that it is a more recent technology, the advances in the matter of processing speed, have made a slow task become an automated process. Now it is more accessible. Therefore, many companies are using it for demographic metrics, price optimization, promotions, establishing relations and much more.
This discipline is based on 3 main pillars:
- Artificial Intelligence
- Machine Learning
It is a computing process that applies algorithms to analyze data from different approaches. This allows us to segment, categorize, analyze, predict, and contrast information in terms of improving your business model.
Among the different advantages that data mining offers you, there is a possibility of answering complex questions that you would not be able to answer with traditional methods. Among the techniques that make this possible, you have:
- Prediction. Data mining ways tend to be predictive and are associated with probabilities. These statistical possibilities are called confidence and establish conditions to generate rules (expected results) and corresponding support.
- Automatic detection. This technique makes reference to the execution of models to find the information. It requires to use an algorithm over a specific set of new data and the application of the process is called scoring.
- OLAP. Is the acronym for On-Line Analytical Processing, which allows complementing datamining. In contrast with data mining, it facilitates a multidimensional visualization of the information, which also includes hierarchies.
- Data Warehousing. The storage of data can be in any format, but it must be relevant to the problem. This requires the information to be refined and prepared to find concrete solutions.
At Fusionworks we specialize in the implementation of IT tools to meet your business objectives. If you require a tool for optimizing your processes and data analysis, do not hesitate to contact us.