A Business Tool

by Ivan C



Data mining is a tool many businesses use to make important business decisions. When a data mining tool is implemented trends and behavoirs from consumers are predicted that can potenially help a company choose a new product, and advertise to the right set of people while keeping it at low cost.Technological advances in massive data collection, powerful multiprocessir computers, and data mining algorithms allow data mining to be effective. It is said that data mining is only possible through evolutionary steps beginning with data collection in the 1960;s, accessing data in the 1980’s, and data warehousing and decison support in the 1990’s. The enabling technologies for these steps were computers, tapes, and disks, RDBMS and ODBS, and on-line analytic processing and multidimensional databases respectively(Thearling, 2010). As said before data mining enables automated prediction of trends and behaviors. It does this by quickly and efficiently analysing data to answer questions. Their are many methods in data mining such as artificial neural networks, decision trees, genetic algorithms, nearest neighbor method, and rule induction each with their own restrictions that help transform data into valuable information. Modeling, the technique that gives data mining life, is the task of creating a situation or question in which you already know the solution and applying it to a smilar question or situation in which you dont. The model allows it to look for the answer similar to the given occassion. In the past data mining was mainly used by financial services and direct mail marketing, but now any customer based company can benefit from it. In order for it to be successful a good business process target, such as porspecting, and a large data warehouse need to be available.

This article is related to the class in which we get exposed to the importance of a database and the benefits that derive from it. By knowing advancing technologies we are capable of creating new tools and increase our knowledge that can be useful in the future. I liked how this article described in detail what  it is presenting. It gave clear information although at times some database vocabulary was out of my knoweldge. But it did provide a list of words and their definitions and the end of the article. They were useful and defined some of the words I didn’t know but not all. I also liked how it talked about all aspects of data mining; what it is, its different methods, how its used and by whom, and how it is created. Overall data mining is a powerful tool that has been developed over time. It has transformed the way businesses interact, create relationships, and sell to consumers. With the advancing technology data mining can only become more accurate and useful.

References:

 Thearling, K. 2010. Oniline. “An Introduction To Data Mining.” Retrieved September 28, 2011 from Thearling.com