The Significance Of Data Mining Operations In Businesses
In today’s age of information technology there is nothing more valuable than information or data, even more precious is the ability to analyze and interpret data. Data Mining is a process or in some occasions it is a technique through which patterns and trends are identified or observed within a large data set which is commonly referred as a database. By analyzing data sets businesses can improve their existing strategies and also come up with better solutions to better serve their customers. Businesses generally store their massive hoards of data in specifically designed database servers which are commonly known by the name data warehouses. It is from these data warehouses that business experts analyzes the information collected, in order to come up with a conclusion.
The significance of a Data Mining software and application cannot be overlooked in the business world. It has now become a necessary implementation for any big business. A perfect example of how Big Data can improve product innovation is Amazon’s Fresh and Whole Foods – an Amazon initiative to dive into the wholesale market space. Through the aid of its statistical and machine learning techniques, Amazon Fresh and Whole Foods have been able to tap into customer preferences and choices. It has enabled Amazon to unravel some bizarre customer habits such as the desire to buy alcohol among fathers who have been searching for baby diapers and related baby products online.
Netflix is yet another good example of big companies utilizing Data Mining techniques for targeted advertising. Netflix has over 100 million subscribers globally and it collects huge data from its subscribers which have been key to Netflix’s success in building its reputation. A Netflix subscriber is well aware of Netflix’s ability to suggest relevant movies and documentaries to watch specific to the customer’s likes and past activities. Netflix traces its user’s past account activities and collects the information using Big Data Mining, analyzes the data, and finally gives suggestions to its audience.
Big Data Mining has its utility not only in identifying customer preferences and choices but it is used in innumerable other business operations. Big Data Mining can contribute greatly towards the development of Risk Management Solutions – being able to foresee a potential risk and acting upon it accordingly is vital for businesses to survive in the long run. It is especially true in the case of Fleet Management Companies. Another big advantage of Big Data Mining is the ability to renovate their products according to the market demands. It is quite evident that Businesses that are operating on the basis of their Big Data Analysis Platforms have a competitive edge over its competitors.