Data Mining: With Digital Transformation, people have never worked with data as much as they have today. Companies are investing more and more resources to leverage their ability to manipulate data and impact business performance.
Many brands such as Google, Netflix, and Amazon are positioned in the market as organizations based on Data-Driven (data-driven). The performance of your business can confirm this.
Data-driven is typical for well-known startups, but did you notice that traditional companies that embraced innovation through data also jumped on the high-performance bandwagon? Do you know how they conquered this? Check now what Data Mining is and how to use it!
What Is Data Mining?
Indeed, you must have heard that term somewhere. Data Mining, or data mining, is an analytical practice that aims to observe and map patterns between data. It happens in an automated way through technological resources such as artificial intelligence and machine learning.
This means that it searches for data from a base and, through software, reduces them to a small amount, which is easier to work with, and performs a comparative study to map patterns between each grouping of data. This practice allows the business to act increasingly strategically since it is a more targeted market intelligence study, acting more precisely towards the target.
DM, BI, or Big Data?
In the digital innovation scenario, especially in the business context, some very similar concepts are rising, causing confusion among professionals and companies. In addition to Data Mining, Business Intelligence (BI, or Business Intelligence) and Big Data (Large Database) are recurrent in corporate environments.
Despite being similar and part of a Data-Driven, data-driven culture, these terms have some differences. Big Data consists of the manipulation of robust databases; that is, it concerns the amount of data without any information. That’s right: data is not necessarily synonymous with relevant information for your business.
Business Intelligence tools can be applied with Data Mining targeting working with these large bases and transforming this data into relevant content for the development of actions and strategies for the success of your business. BI is more about applications for data manipulation: they can be used for data mining, building more robust analyses, daily monitoring of indicators, and developing immediate solutions.
How To Use Data Mining?
Now that you know what Data Mining is and the difference between this concept and others on the rise in the market, you must be wondering how to apply it to your business and boost your performance. Initially, it is necessary to keep in mind that working with data is a challenging task and demands, in addition to software, trained professionals.
The data scientist is the one who will work daily with the manipulation of this data and develop increasingly accurate analyzes of your business. Currently, there is no specific graduation course for this function. Professionals in this area usually come from backgrounds focused on computing, business, and engineering.
But you don’t need to be a data scientist to know a little more about the steps to build and apply Data Mining in your business, do you? If you want to learn more and be able to start developing plans to make your company data-driven, check out, below, a step-by-step to implement the data mining process!
Define The Problems
As data mining works with the accuracy of the information, the first step is to define the problem to be addressed. Thus, you can direct the software to look for correlated data with your problem through automation. For example, your business wants to launch a product focusing on a female audience between 25 and 50 years old. With data mining, those obtained have an interface with this segmentation.
Gather The Data
Once this definition is made, the data will be gathered into groups, with which your data scientist will work to identify patterns between them. The tendency is for the product developed to be more personalized and have greater acceptance in the market. This means you reduce investment costs and increase your business revenue, all through data mining.
Determine Your Application
You already know the problem that needs a solution and have the data groups in your possession. Now it’s time to define how to apply this data. In the example we are using for the construction of a new product for your business, it is possible to apply this data for a series of objectives, such as defining which regions it will be launched, through which communication channels, etc.
Perform The Mining
With your usage defined, you can start mining the data. In practice, this is where the accurate analysis begins. Through comparative analysis of the data, it is possible to find patterns and act predictively in your business. It allows the development of more precise strategic actions, going straight to the target.
Analyze The Results
With the results of your analysis in hand, you are ready to develop the solutions your business needs. In building a new product, you now have enough input to develop it according to your target audience’s expectations. This promotes greater acceptance of that item in the marketplace and competes for your brand’s success.
