Data Mining: Application and Advantages
Data mining is retrieving information from the web using algorithm. It can be described in an innumerous ways. It can be expressed as finding knowledge from the database for your purpose. If it’s still tough to understand, let’s think it this way. Imagine a man digging for gold in the gold mine using hammer and other tools. In that scenario, gold is the information and his tools are the algorithm from SQL. And if you want to know how data mining can help you or your business, here are ways how:
Sales forecasting the process of predicting or estimating what your future sales is going to be. For that, organizations depend upon the data heavily to predict and predicting is much easier for an established business. Whereas, forecasting is relatively tougher for a fledgling business but it is not impossible. Let’s say, you decide to open a coffee shop. You’ve found a location but now you want to know is it a good idea? Will it fetch you good profit? You want to know how you can find out.
An expert can answer your question after fetching all the data he needs, questions like:
- How many people drink coffee in the area?
- How many competitors are there in the mile radius?
- What kind of profits are competitors making?
Answers to this entire question can help you conclude will your business be profitable. And analysts dig these data from various sources to make it easier for you.
Predictive analysis can help in forecasting future events. It is used in marketing, finance, insurance, retail, travel, pharmaceuticals and other fields.
Software tools for predictive analysis are already extensively used by traders, sales employees, back office and middle office employees in an effort to enhance their knowledge of the market. In addition, these tools helped them recognize and identify trading opportunities. While you will find various online providers for these tools, you are required to first learn more about them in order to spot the tool that can produce the needed output.
But base for all these applications are data and this where data mining can help you fetch the required data.