Data mining, an essential to make proper business strategies

Whenever a person starts a company the very first thing he must know is how to manage the data of his company. Every company has a number of departments and thus an enormous record that he has to maintain. There is nothing new in this people are doing this from the time the business started and they have done it in pretty good way. But now as the business is growing in pace record keeping is going more hectic thus need a new way of maintaining these records appropriately called data in today’s technical world. Progress or degradation of a business is the result of the intelligent or silly decisions you take. This is all obvious that it need time and proper analysis of all the pros and cons of your decision and thus deciding the proper business tactics. Each person has his own way to do this but how about having a widely accepted way for organizing data, analyzing it from different viewpoints and summarizing it into useful information generally called data mining in data management   system.

Data mining is a relatively new term, the technology is not. Use of computers in by business is not new to examine a large amount of data a company have. However innovations are taking place continuously in terms of processing power, statistical tools and disc storage and these all are enhancing the analyzing power and accuracy. The term is a catchword, and is frequently misinterpreted to any form of large-scale data or information processing (collection, extraction, warehousing, analysis, and statistics) but is also generalized to any kind of computer decision support system, including artificial intelligence, machine learning, and business intelligence. The real data mining task is the automatic or semi-automatic analysis of large amounts of data to extract previously unknown interesting patterns such as groups of data records, unusual records and dependencies. Data mining uses information from past data to analyze the outcome of a specific problem that may be faced in future.

Business Intelligence

The primary use of data mining is in those companies that have strong consumer focus like retail, communication, financial and marketing organizations. It facilitates a company to establish a relationship among internal factors and external factors like price, staff skills and competition etc. respectively. These all factors collectively used in determining the impact of the business tactics on sales, corporate profits, customer satisfaction etc.. Data mining works to analyze data stored in data warehouses that are used to store that data that is being analyzed. That certain data may come from all parts of business, from the production to management and management to sales. Data mining is fruitful for each and every person using it. For examples, a manager can use it in analyzing market thus forming new market strategies for their products accordingly, increasing sales. An owner can use it in decision making, making strategies to cope up with increasing competition.

this technique is beneficial for every business provided it is used in a proper way and extracting most of it.