How Does Data Mining Work?
Data mining is a combination of technological, processing, and analytical techniques that are used to highlight similarities and differences within large sets of data to illustrate key factors and decisions. It employs the use of statistical analysis, artificial intelligence, and machine learning to help process and simplify information. The reason behind the success of data mining is that these programs are often able to catch detailed information that human analysts may not be able to. They are also able to run non stop whereas humans are limited in many scopes and much more costly.
The logistics behind data mining is very simple but it can evolve to encompass any specific requirements or restraints that are demanded. The fundamental steps behind data mining are:
Collecting Data
Programs and analysts will collect information and raw data about what they’re looking for.
Analyzing Data
In today’s day and age, the most commonly used data is already collected and translated into a digital format. However, if a company wants to use data that is not in a digital format, analysts and certain technological programs may be required to help process raw data into a format that can be mined.
After all the data has been processed into a format that can be data mined, a combination of statistical algorithms, artificial intelligence, and machine learning will scan the data to find if there are any patterns and relationships.
Creating and Applying Parameters
Using the patterns and relationships found before, companies can identify the exact causes and effects behind any decision. In order to predict future trends, patterns and relationships are set as parameters to help identify any similarities or differences when the information is applied to a new database.
Data mining opens opportunities for companies to make more informed decisions supported by conclusions found within their data. As technology becomes more advanced, the requirements behind data mining are becoming less expensive, more automated, and easier to use, making them more broadly available to smaller organizations. The future of data mining is set to grow significantly and the only limit it has is the human imagination.
