Today, businesses are collecting more information that is available in a variety of formats. This includes: operational data, sales reports, customer data, inventory lists, forecast data…etc. In order to effectively manage and grow the business, all of the data gathered requires effective management and analysis. One such way of controlling the vast amount of information flow is a process called Data Mining.
Data mining is the process of taking a large amount of data and analyzing it from a variety of angles and putting into a format that makes it useful information to help a business improve operations, reduce costs, boost revenue, and make better business decisions. Today, effective data mining software has developed to help a business to collect and analyze useful information.
Data mining allows a business to collect data from a variety of sources, analyze the data using data mining software, load the information into a database, store the information, and provide analyzed data in a useful format such as a report, table, or graph. As it relates to business analysis and business forecasting, the information analyzed is classified to determine important patterns and relationships. The idea is to identify relationships, patterns, and correlations from a broad number of different angles from a large database. Data mining software and techniques allow a business easy access to a much simpler process which makes it more lucrative.
Data mining works allows a company to use the information to maintain competitiveness in a highly competitive business world. For instance, a company may be collecting a large volume of information from various regions of the country such as a consumer national survey. The software can compile the mined data, categorize it, and analyze it, to reveal a host of useful information that a marketer can use for marketing strategies. The outcome of the process should be an effective business analysis that allows a company to fully understand the information in order to make accurate business decisions that contributes to the success of the business. An example of a very effective use of data mining is acquiring a large amount of grocery store scanner data and analyzing it for market research. Data mining software allows for statistical analysis, data processing, and categorization, which all helps achieve accurate results.
Data mining is mostly used by businesses with a strong emphasis on consumer information such shopping habits, financial analysis, marketing assessments…etc. It allows a business to determine key factors such as demographics, product positioning, competition, pricing, customer satisfaction, sales, and business expenditures. The result is the business is able to streamline its operations, develop effective marketing plans, and generate more sales. The overall impact is an increase in revenue and increased profitability.
For retailers, data mining allows them to use of sales transactions to develop targeted marketing campaigns based on their customers shopping habits. Today, data mining applications and software are available on all system sizes and platforms. For instance, the more information that has to be gathered and processed, the bigger the database. As well, the type of software a business will use depends on how complicated the data mining project. The more multifaceted the queries and the more queries performed, the more powerful data mining system will be needed and the better the forecasting will be.
When a business harnesses the power of data mining, they are able to gain important knowledge that will help them not only develop effective marketing strategies leading to better business decisions and increased business intelligence, but it will help identify future trends in their particular industry. Data mining has become an essential tool to help businesses gain a competitive edge.
Managing your organization well is critical – by using data mining software and being on top of performance management systems, you can ensure that your organization’s information technology is up to par!
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MLA Style Citation:
Noton, Adriana "Data Mining And Its Impact On Business." Data Mining And Its Impact On Business. 25 Jun. 2010. uberarticles.com. 28 Dec 2014 <http://uberarticles.com/computers-and-technology/data-mining-and-its-impact-on-business/>.
APA Style Citation:
Noton, A (2010, June 25). Data Mining And Its Impact On Business. Retrieved December 28, 2014, from http://uberarticles.com/computers-and-technology/data-mining-and-its-impact-on-business/
Chicago Style Citation:
Noton, Adriana "Data Mining And Its Impact On Business" uberarticles.com. http://uberarticles.com/computers-and-technology/data-mining-and-its-impact-on-business/
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