What is Data Mining?
It is also known as Knowledge discovery or data discovery. As we all know that many large organizations are operated in different places and each place generates large volumes of data (a form of tera- to petabytes) and it is necessary for the companies to make decisions from all such sources to take a strategic decision. To analyze, manage and to make quick decisions we need to transform in all domains. The method of extracting useful information from a repository of data is called data mining. They focus on the data-driven discovery respectively. This tasks can be categorized into two ways they are: Predictive and descriptive. To process the petabytes of data mining data requires supercomputer and computing clusters. Types of data mining include Supervised and unsupervised learning.
It is a powerful technology with great potential to extract hidden predictive data/Patterns from the large repository (Databases, text, images) that uses scientific methods, algorithms to extract knowledge of data (a type of data is structured) in different forms. It is an analytical process to explore a large amount of data by applying detective patterns to those data to get new subsets of data to improve business process and decision making.
Understanding Data Mining
Mining is typically done on a database with different data sets and is stored in structure format, by then hidden information is discovered, for example, online services such as Google requires huge amounts of data to advertising their users, in such case mining analyses the searching process for queries to give out relevant ranking data. The tools and techniques used in mining process are classifications (predict most likely case), Association (identifying variables related to each other), prediction (predict the value of one variable with the other). For good Pattern recognition, it makes use of Machine learning. A wide variety of algorithms are implemented to take relevant information from the queries.
How does Data Mining make working so easy?
They make the work so easy by predicting customer behavior and uses these tools to search patterns of data. It turns raw data into structured information. The steps involved in this process are:
- They extract and load data into a data warehouse (which requires pre-processing) which are stored in the multidimensional database (which does slice, dice, cubical format analysis).
- Using Application software, they provide data access to business analyst.
- Presenting this information in an easily understandable format such as graphs.
- Need to increases the volume and diversity of data.
In short, we can say it works in three simple steps. They are data preparation(exploration), choosing various models for building and validation, Deployment stage(generate expected outcomes). On the other side, it is not as simple to work as it is essential for the data mining to understand what and how it can be implemented in all the streams of data with respective of massive production of data around the organizations. Examples of data mining include e-commerce, Customer Relationship Management, Banking, Health Care, Primary essential in Marketing. In all these applications datamining Algorithms are applied to prepare predictions and to extract patterns of data.
Top Data Mining Companies
Many leading Top companies use this domain to ensure market success, increase revenues, identifying customers to make their business good. They are :
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- Google – Searching relevant information against the queries.
- Cignus Web
- IBM and SAP
- Datum Informatics
- IBM Cognos – BI self -service analytics
- Hewlett Packard Enterprise
- SAS Institue -Data mining services.
- Neural Technologies – provides product and services.
- Amazon – Product service.
- Delta – Airline Service (Monitoring customer feedback).
- Sun tech -Web research service
The various subsets of Data Mining
Some of the mining techniques include prediction, classification, regression, clustering, association, decision trees, Rule-detection, Nearest neighbor. It divides data sets into two types. They are a training set and a test set. The other subsets of data mining with relation to data are data science, Data Analytics, Machine Learning, Big Data, Data Visualization. The major difference between them is mining is still an analyst and builds an algorithm to find out the structure of data. Mining gathers data first and makes inductive process while others don’t find patterns.
What can you do with Data Mining?
We need to concern data mining as primitive because it improves customer service, and increase production service. With this, we can optimize the data by analyzing the data in the fields like Healthcare, telecommunications, Manufactures, finance, and insurance. It is oriented towards applications and is less concerned with finding relations with variables. It helps an organization to save money, identifies shopping patterns in a supermarket, defining new customers, predict customer response rates. It works with three types of data: metadata ( a data about itself), transactional and non-operational data. The Government makes use of data mining to track the fraud, to track game strategy, cross-selling.
Working with Data Mining
Initial process includes cleaning the data from different sources which is an essential part. To do that they use several techniques called statistical analysis, machine learning. A data visualization tool is one of the versatile tools for data mining. The method that is used to work with that is called predictive Modelling. The process of data mining consists of exploration, validation/verification, deployment. The task involves
- Problem Statement is generated.
- Understand the data with the background.
- Implementing Modelling Approaches.
- Identifying Performance measurement and interpret the data.
- Visualizing the data with results.
The works with some tools like Rapid Miner, Orange, which are all open source. Modeling techniques used here are Bayesian Networks, Neural Networks, Decision Trees, Linear and logistic regression, genetic algorithms, Fuzzy Sets. The primary task of data mining are:
- Dependency Modelling
- Discover detection.
Advantages of Data Mining
There are a lot of advantages, some points are given below:
- They improve planning and decisions making process and maximize cost reduction.
- It is easy for the user to analyze a huge amount of data in a speedy process.
- They are useful to predict future trends by the technology used. And other popularity of data mining technologies is graphical interfaces which make the programs easier.
- They help us to find fraudulent acts in market Analysis and in manufacturing data mining they improve usability, design. They can also be used for non-marketing purposes.
- Improve company revenues and lowers the cost in business.
- They are used in different domains like agriculture, medicine, genetics, bioinformatics, and sentimental analysis.
- It helps marketers to predict customers purchasing behavior of the product and have been used for electrical power engineering and a better understanding of the customer.
- They also assist credit card transaction and fraudulent detection in it.
- Mining is widely used in Agriculture to predict fermentation problems using K-Means approach.
Required Data Mining skills
To become a data miner practioner they need a unique technology and interpersonal skills. The technical skills include Analytic tools like MySQL, Hadoop and programming languages like Python, Perl, Java. And need to understand statistical concepts, Knowledge induction, Data structures and algorithms and working knowledge of Hadoop and MapReduce. Skills are required in the following areas like DB2, ETL tools, Oracle. If you want to stand out from other data miner, the need for learning Machine Learning is very important. To identify patterns of the data then basics of maths is mandatory to figure out numbers, ratios, co-relation and regression steps. To teach one must have database concept like schemas, relationships, Structure Query Language. A data mining specialist must have knowledge in business Intelligence especially programming software and experience in the operating system especially Linux and an also strong background in data science to take strong steps in a career.
Why should we use Data Mining?
It ranks at the top of the key technologies which have more impact in the organizations in the next coming years that’s why mining is important. They help to explore and identify patterns of data. They are connected to the data warehouse and neural networks which are responsible for extracting. In marketing segmentation and clustering tracks the purchasing behavior. For relevant search in document mining, mining mines the pages along the web. Their responsibility includes performing research in data analysis and interpreting results. An important use of data mining is to help fraud detection and develop models to understand characteristics based on the patterns. Mining is used to assist in the collections of observations and finding correlations and relations between the facts. The functionalities include data characterization, outlier analysis, data discrimination, association and clustering analysis.
Key to success in mining are:
- Source of data
- Appropriate Algorithms
- Scientific mining
- Increased processing speed.
Data Mining Scope
Frequent pattern mining has broadened the data analysis and has a deep score in mining methodologies. Mining has huge scope in large and small Organizations with remarkable prospects. They have automated predictions of trends including finding fraudulent and maximize ROI in the future. Discovery of Past unknown Patterns. The techniques used in mining are advanced concepts like neural and fuzzy logic to improve their bottom line and to quickly get resources from the search. You could find future scope in distributed Datamining, Sequence Data Mining, spatial and geographic Data mining, Multimedia.
Why do we need Data Mining?
In today’s business world data mining has been used in different sectors for the analytical purpose all that user needs are that clear information, this surges up the scope of data mining. With this Technique, we can analyze the data and convert them into meaningful data which then helps to make smart decisions and predictions in an organization. In IT industry mining speeds up the internet and the response time of the site is easy with the help of mining tool. Paramedical companies can mine data sets to identify agents. You will be able to examine customer behavior they find patterns and relations and predict future business strategy. It eliminates time and manpower required to sort large database. They provide clear identification of hidden patterns to overcome risks in business. Data mining identifies outliers in the data. It helps to understand customer and improve their service to reach the goal of the user.
Who is the right audience for learning Data Mining technologies?
- The right audience is IT managers, data analysts who are looking for career growth and improve data management, tools for successful data mining.
- Experts working on Data warehousing and reporting tools and business intelligence as well.
- It can be taken by beginners with good logical and analytical skills.
- Software programmers, six sigma consultants.
How this technology will help you in career growth?
The world of data science offers more positions in organizations. The demand for miner specialists is vital as companies are looking for experts with outstanding data mining skills and experience. Data miner uses statistical software to analyze data and improve business solutions. A data mining specialist is an essential role in the data science team and therefore their potential is valued more at companies of all sizes.
It is rapidly growing technology in the current world as everyone needs their data to be used in the right approach to obtain accurate information. Social networks such as Facebook, twitter etc and online shopping like Amazon, it is data that describes the data is been gathered and captured we must extract strategic facts from that data. For this purpose, data mining is evolving globally. They combine with big data and machine learning to see better insights with the organization. It is all about predicting the future for analysis. Since companies keep on updating they need to track of latest mining trends to overcome challenging competitions meanwhile mining helps to get knowledge-based information. And this technology can be used in many real-life applications like telecommunications, bio-medical, marketing and finance, retail industry.
This has been a guide to What is Data Mining. Here we discussed the various data mining subsets and top data mining companies with advantage and scope. You can also go through our other suggested articles to learn more –