What is data mining?

Data mining is the analytical process of mining data in search of correlations, patterns and trends between a company's variables.

From the analysis of this extracted data, you find answers and anticipate values, situations and results with predictive analysis models

Do you want to learn from the past, visualize your present well and be able to predict the future of your business by applying data mining

Start now by reading this article calmly.

Data mining: what is this process?

Data mining is the analytical process of mining data in search of correlations, patterns and trends between a company's variables.

"Data mining is the most important step [...]. According to Possa et al, the human brain has been proven to be able to make up to eight comparisons at the same time. The function of data mining is precisely to expand this comparison to “infinity ” and make it visible to the human eye."

Let's go back to the analogy between data and oil, and it will be easy to begin to understand what the data mining process is.

Think of the sieve where gigantic amounts of data fall, and you are looking for consistent information. What information?

The standards. Those data that are repeated triggering connections, correlations, problems, anomalies, opportunities, etc. and revealing knowledge structures previously unknown to you.

This means that, in your company's large amount of data, with data mining , everything is mined, explored and analyzed with the aim of finding relevant data for your business.

In other words, from the input extracted from this mining we extract precious information for your team to work assertively.

And regarding what the company's variables would be, they are previously classified elements from which a statistical analysis is carried out exploring the data in search of solutions to specific problems.

As? In various ways, for example, analyzing relationships between variables (external, such as customers, competition or economic scenario; internal, such as staff; seasonal, etc.).

What is a data mining model?

Data mining model is a way of processing data that is stored in aninformation base . In other words, it is a methodology that generates knowledge for your management to have intelligence in decisions.

Here at Indicium , we use machine learning (ML), artificial intelligence (AI) and statistics within our own methodology.

And for your company to have a data mining model that works well for your business, basically and briefly you need to follow these seven steps

1. identify “the” problem
2. prepare your data
3. carry out exploratory analysis
4. create your model
5. validate the model
6. implement the model
7. evaluate and monitor results (always!)

So, what's your business problem? Do you already know which area of ​​your company is in trouble and deserves special attention?

Don't confuse data mining with business intelligence

Until the fourth step above, it may seem like we are talking about both data mining and business intelligence. In other words, both can be in an analytics project, but don't confuse one thing with another.

Business Intelligence is a composition of systems, methodologies and processes used to transform data sources into intuitive visualizations, such as these dashboards, with the aim of extracting business insights.

Data mining is the smartest way for you to extract knowledge from this data by finding relevant data, retrieving information and recognizing patterns. To do this, you will use statistical techniques and artificial intelligence (AI) tools.

Data mining: discover patterns in large volumes of data

Use data mining , because you certainly have large volumes of data.

And don’t be fooled into thinking that this is too modern for your company. Data mining is a thing of the last century ... 😅 It can (not to say should) be applied to companies of all sizes.

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