Data Mining: Unleash the Power of Your Data

Exclusive Step by Step guide to Descriptive Research

Get ready to uncover the how, when, what, and where questions in a research problem

SHARE THE ARTICLE ON

Descriptive Research cvr 1
Table of Contents

What is Data Mining?

Data mining is the process of identifying and extracting information from large data sets. It is a technique that can be used to identify patterns in data, discover new information, learn about relationships and trends of the data. It involves the use of algorithms to extract information from large datasets.

The overall goal of data mining is to identify useful patterns or trends in the data. It extracts information from a data set and transforms it into an understandable structure for further use. This structure can be in the form of models, concepts, rules, and even predictions or recommendations. Data mining is an umbrella term for a set of tools that use statistical analysis to discover patterns in large data sets. 

Step by Step guide to Descriptive Research

Get ready to uncover the how, when, what, and where questions in a research problem

Importance of data mining

In today’s world, data and information are valuable resources. The ability to analyze large sets of data quickly and extract actionable insights can make or break any organization. Data mining is important for every business from healthcare to a government organization. Importance of data mining includes – 

 

  • Insights from data mining can be used for a wide range of activities, including planning for sales and marketing, identifying product failures, finding business opportunities, and much more. 
  • It assists an organization in making more accurate and better decisions.
  • It helps to make profitable adjustments in operation and production.
  • It helps to analyze the customer behavior which leads to data-driven business.

 

Businesses that can utilize data effectively gain a competitive advantage over their competitors. 

Advantages of data mining

The advantages of data mining include – 

  1. Data mining increases productivity, greater accuracy and minimizes errors. 
  2. It also delivers more consistent results across large databases. It can help to identify meaningful patterns in the data that would otherwise go unnoticed. 
  3. Additionally, using data mining tools helps to discover new facts about the  database. This can lead to improved decision-making capabilities for the business and help to keep it competitive by providing new ideas and insights into customer trends or behaviors.
  4. It helps to produce a much higher quality product if analysis includes historical as well as current information.
  5. Data mining boosts revenue of the company and helps in brand strengthening. 
  6. It helps in customer identification and to make marketing strategies.
  7. It helps in the retention of customers and the increase of customer loyalty, as well as the acquisition of new customers.

Exploratory Research Guide

Conducting exploratory research seems tricky but an effective guide can help.

How data mining works

Data mining is a process that allows businesses to analyze large amounts of data to make better decisions. From consumer internet companies like Facebook to those in finance and retail rely on data mining. 

Using big data analysis software, businesses can learn more about their customers’ buying habits and preferences. By collecting as much data as possible from every interaction, these companies can gather valuable information about what customers want. This helps companies to offer personalized products and services. 

For example, A clothing store might use big data to figure out which outfit a particular consumer prefers, what size they prefer, and how often they buy things.

Data mining process

Following are seven stages of the Data mining process – 

  • Data cleaning

Before beginning data mining, it’s important to have a clean set of data. This may sound obvious, but sorting out data inconsistencies, detecting and correcting errors in data sets takes time because it requires a lot of attention to detail as well as knowledge about how the data set was collected and processed. 

Some types of errors include missing values, formatting issues, outliers, and inconsistent values across different variables. Data cleaning is an important process to ensure that data is accurate and reliable for analysis, especially when it is used to create statistical models. If it is in any way imperfect it will impact the outcome. 

  • Data Integration

Raw data is collected from different platforms. This could be an overwhelming amount of information. To simplify, there must be data integration through various tools that make sense of different sources of raw data. 

Data integration brings data from different sources together. This can be done to combine datasets that have the same variables or to join datasets that have similar but not identical variables. Eventually, all multiple sources would lead to a single analytics view on specific topics. 

  • Data Reduction 

Data mining requires a significant amount of historical data, but data repositories include far more data than is required for the process. As a result, necessary data is selected from the integrated data.

This step involves reducing the size of data by removing unnecessary or redundant data. Depending on the dataset, there may be many unnecessary variables. Which has to be removed before proceeding to the further step. 

  • Data Transformation

In the data transformation stage, data is converted into different formats suitable for data mining. Data mapping and other data science techniques are included in this process. Data transformation steps involve smoothing, aggregating, discretization, generalization, normalization and attribute Construction of the data.

  • Data Mining

This is a crucial stage in data mining, where patterns and knowledge from a large amount of data are extracted by applying intelligent patterns to the data.

  • Pattern Evaluation

Pattern evaluation is carried out by spotting useful and interesting patterns. The evaluation indicates information based on which patterns are interesting and the score of each pattern, then summarizing and visualizing the data in a user-friendly format.

  • Knowledge Representation

In the last stage, the data is visualized in the form of reports, tables, etc to represent mined data.

Disadvantages of data mining

It’s important to note that data mining is typically subject to some pretty intense limitations. 

 

  • Data mining is a time-consuming and expensive procedure. It involves technology, data storage space as well as maintenance costs.
  • Security concerns regarding the data are one of the disadvantages of data mining. A lot of personal information can be mined without a person’s knowledge and if the data security is not maintained then it might lead to a data breach.
  • The data gathered can be incorrect and can cause problems with decision-making.
  • The information generated through data mining can be used for some personal gain which can be harmful to the company’s reputation as well as customer security. Hence, It is the responsibility of businesses to guarantee that data is only used for the purposes intended.

The future of data mining

According to the report, we generate  2.5 quintillion bytes of data every day. The Internet of things (IoT) and wearable technology have made people into data-gathering machines. To manage and draw significant insights from the data, for better decision-making, we’ll need ever more complex approaches and models. So the future is bright for data mining and data science. Machine learning and artificial intelligence are only going to get better. 

Data mining has come a long way. So what’s next for data mining? While we may never have an exact prediction of how things will unfold, there are clues. Analytics technology continues to advance with new features and support for a wider range of data types including text, video, and images. One thing that doesn’t seem likely to change anytime soon is Big Data’s seemingly constant growth or at least its capacity and ability to grow. The world around us is becoming more instrumented every day as devices continue their march toward internet connectivity. 

By 2024, Juniper Research estimates there will be 83 billion connected devices worldwide. With all these new endpoints coming online, organizations won’t be able to afford to give up on some portion of valuable intelligence. In fact, It might be wise to expect analysts to extract information from any available digital source to produce truly valuable insights. So far, organizations have been pretty successful in data analytics but they might need to get ready for a much higher volume of data than they can handle.

Online survey tools 10 1

See why 450+ clients trust Voxco!

By providing this information, you agree that we may process your personal data in accordance with our Privacy Policy.

Explore all the survey question types
possible on Voxco

Read more

Hindol Basu 
GM, Voxco Intelligence

Webinar

How to Derive the ROI of a Customer Churn Model

30th November
11:00 AM ET