Data Mining

Today's successful businesses rely on extracting patterns from data to drive strategy and growth. Data is gathered from nearly every business function including sales activities, purchasing records, web traffic, and other functional analytics routinely collected in a systematic fashion. Over time, these data points comprise a complete data set with a size that can exceed hundreds of terabytes. Turning these data points into relevant, actionable strategies is the function of data mining.

data mining enablersEnabling Data Mining

The power of data mining (also known as knowledge discovery in data, KDD) lies in the ability to produce patterns that highlight specific behaviors and extrapolate statistical predictions of future actions. Algorithms that consider core relationships in data sets help produce a clear and far more accurate picture of the whole data set, while providing a framework for future performance goals.  An example of this might be city planning provisions to support increased population growth driven by census data models. Financial institutions use predictive modeling to determine viability for proposed start-up businesses requesting capital loans, while researchers around the globe rely on data mining to aid their studies and progression towards medical and scientific breakthroughs.

Businesses use data mining as a critical component of Customer Relationship Management (CRM) and cost-reduction strategies. An accurate model of customer purchasing behaviors can help balance stock management goals with shipping requirements by determining which items are likely to sell and when. Companies can strategically target better sales prospects and optimize limited resources across multiple regions in response to marketing campaigns and business cycle fluctuations.

Overall, data mining provides a powerful analytic capability to produce sound business strategies that help deliver measurable benefits and profitable growth.