The benefits of data mining extend beyond the business world and reaches almost all fields. Data mining helps an organization to get the required data for handling various processes efficiently and quickly. For businesses, it is important to meet their deadlines and process the data as fast as possible.
Data mining is helpful in reducing costs and raising revenues in many ways. It can help in reducing the costs involved in product R&D in the beginning stages of the product life cycle. The collection of required data also helps in streamlining the statistical processes essential to crucial manufacturing processes.
Once the data has been collected, the organization will have to determine the section of the audience that is least likely to be responsive to their promotional campaign. This will help the organization eliminate all of the costly and unwanted marketing costs.
Data mining also helps a business find out ways for improving scope for mass customization for the facilitation of one-to-one marketing. It is a highly cost-effective tool for organizations that could be used in a wide range of ways. Many of the industries cannot think of progressing without using this tool in the modern business environment.
This includes financial, telecommunication, medical, pharmaceutical companies and retailers. Even small businesses can find lots of benefits from data mining.
Pattern Detection data mining involves 2 processes that work in conjunction for finding information that can be used by an organization for improving its operations. The first is Data Warehousing. It is further made up of two sub-processes – Data Integration and Data Cleaning. In the first sub-process, data is collected from different sources and combined, and in the second one the data set is cleaned of all anomalies, errors and missing values.
The second process is data mining itself where data gets extracted and analyzed from different perspectives. The information is used for detecting useful patterns that will usually hide in large volume of data. After all the useful patterns and links are extracted, the organization can use the information for improving its business performance.