Data mining is a conversion of data to valuable information for a particular organization. Searching and identifying tendencies in a huge data set can be done by artificial intelligence — the main data mining’s tool. Software analyzes the most popular requests on the internet, and the purpose of this analysis is to obtain detailed information about the preferences of the customers. This received significant knowledge leads to increasing sales, reducing costs and developing new business strategies, which can help to make companies more effective.
Working principles of Data Mining
There are five stages of data mining process:
- Data collection with subsequent loading it into storage.
- Warehousing on servers and cloud.
- A team of analysts and managers decide how it will be used.
- Sorting and processing with a computer program.
- Presentation received data in any form.
Data Mining software
Unique technologies of data mining are used in searching for regularities in user’s behavior and making blocks of information based on preferences of customers. An essential part of data mining is data storage. Warehousing is carried out through creating a common database or program. Then, specific segments of a particular circle of users are subjected to a narrow analysis. Despite the way of data organization in a company, received knowledge is used for managing and solving problems of the company.
How Data Mining changes a society
An example of successful using data mining is social networks. Data mining helps firms to make advertising and marketing campaigns that target specific sets of users. In many cases, data mining influences and even changes the habits of users, equally in the purchase of goods and in voting. Nevertheless, not all users like it because of using their private information and covertly controlling behavior, so data mining has been heavily criticized lately.
Data Mining is around us
Nowadays, supermarkets and grocery stores develop loyalty programs for clients with the help of data mining. When a customer uses a loyalty card at the store checkout, this store tracks and analyzes information about the client's age and location, product’s characteristics and price. Then, stores discern preferences and send coupons to customers, based on their buying habits, and determine which items will be sold on sale and which at 100% price. The scope of data mining is quite wide. Different sectors of the economy use data mining every day, tracking trends in financial markets or working with interests of any client, but also data mining is used for example for prevention of potential threats in the government sector.