What is Data Mining?
Data Mining is a process of analytically processing comprehensive data, accounts and research work that aims to look for correlations, relationships or statistics. It is a branch under the umbrella of computer science and is one of the stages in Knowledge Discovery Databases process which has 5 stages such as:
- Pre- processing
- Data Mining
- Interpretation/ Evaluation
Data Mining is used usually for business purposes such as the Cross Industry Standard Processes, which showcase six phases such as:
- Business understanding
- Data Understanding
- Data Preparation
So what happens all throughout these stages, especially prior to data mining. In the pre- processing stage, there must be a target data. Before data mining occurs, certain data should be set to be analyzed. In the pre- processing stage, it is important that the data is very large at the same time concise to what is only essential in the analyzing process. In this stage also, data are already pre analyzed so to limit essential data for data mining. Therefore prior to data mining, you already have a clean data. This is a process called data cleaning wherein unnecessary and missing data are removed from the target data.
In the data mining stage, it involves six tasks such as anomaly detection, association rule learning, clustering, classification, regression and summarization.
Anomaly detection is the stage wherein unimportant information or data errors are acknowledged and undergo a process of investigation.
In association rule learning, data are analyzed for relationships and connections. Using this strategy, the market can easily be graphed for statistics such as most bought item or most saleable product or peak shopping season.
Clustering is another stage wherein groups and data are analyzed and group according to similarity.
Classification is the stage of generalizing clustered data.
Regression then finds the most useful data with the most minimal error.
Then comes summarization wherein data are being represented in a set and then comes the report.
For business establishments and companies, this is definitely a big help in a way that companies have a guide on the market trends and create business solutions suitable for the market, which would eventually create better profitability. The secret to earning a lot is to know what a market wants. Generally a market has an attitude, a season has a trend and with that given resources, an entrepreneur seizes that opportunity.
Because of this advanced business strategy imploring the use of technology and computer science, many became millionaires and definitely billionaires. Even Steve Jobs, studied the needs of the market and created a product that the market could not live without and voila we have Facebook.
For smart entrepreneurs, data is a vital role in a successful business. If you analyze your data imploring data mining, you definitely know your market well. For an aspiring millionaire, there is no better way to prepare to battle than to know who you are against with.