April 24, 2011
Data mining in information economy
Data mining is a popular concept developed in today's modern information economy which helps the management aspect of every sectors as business, research, science, supply chain etc (Kudyba, Stephan P.). Every day many individuals are performing many transactions, for example - swiping a card, becoming a member of an organization, connecting to a social networking website etc. Business organizations such as Facebook, bank, health care, e-commerce etc are storing, processing and analyzing data which is growing faster than before and will continue to grow even more in the future.
Therefore, we need to have a particular process or a system that enables the business managers and the top level executives to refine the massive data and come up with a set of data that would help them make decisions for the prosperity of their organization.
Basically, data mining is a mathematical method that may include mathematical equations, algorithms, logistics, neural networks, segmentation and classification, clustering, statistics and many more (Kudyba, Stephan P.). It processes huge data and extracts the trends and patterns of the data which is what the top level executives are more interested in, so that, they can make good decisions and make profit out of their business. Data is always growing and the concept of data mining would always be useful for the business executives. Therefore, the future of data mining has huge potential for its application growth because where there is data, data mining comes in to play.
Data mining should be performed by the technical staffs that work for the information technology department and analyzed by the top level management of any organization. They should be able to extract, transform and load data in to our data warehouse system; store and manage the data in a multidimensional system; provide access to concerned parties; analyze the data and prepare the report and documentation for possible change in business processes (Data Mining: What Is Data Mining?).
The future of neural networks is very important. In my opinion, it can be one of the major innovation in the technology and change the world we see now in terms of how data are analyzed and processed. I can't just imagine if the system would be able to think like our brain and store information like us to make logic. Then, the system would be more intelligent than us because we can hardly extract information that are minor to us but, if it would have been a system, it would definitely. But, anyways, analysis of data can be done by artificial neural networks that learn through training and can be performed for data mining (Data Mining: What Is Data Mining?). Analysis of data can also be performed using genetic algorithms, decision trees, nearest neighbor method, rule induction or data visualization (Data Mining: What Is Data Mining?).
A simple example of data mining could be an e-commerce website which has many customers purchasing the products and services. Now, if an executive of the website wants to know which customers among all of our customers bought products and services more than one thousand dollars in three months time period, then we are performing data mining by querying into our database. The motive of an executive for that information may be to offer them with a coupon of fifty dollars so that they are motivated to buy more.
To sum up, we can conclude that every small or big businesses these days needs data mining and the tools that help data mining to make an executive decision, so that, they can be productive in the competitive market of today's modern information economy.
Works Cited:
"Data Mining: What Is Data Mining?" UCLA. Web. 24 Apr. 2011. <http://www.anderson.ucla.edu/faculty/jason.frand/teacher/technologies/palace/datamining.htm>.
Kudyba, Stephan P. "YouTube - What Is Data Mining?" YouTube - Broadcast Yourself. 25 May 2010. Web. 24 Apr. 2011. <http://www.youtube.com/watch?v=R-sGvh6tI04>.
No comments:
Post a Comment