Data mining and its process

Data mining is an interactive process. Take a look at the following steps.

1 – Requirement gathering
Data mining projects start with requirement gathering and understanding.
Data mining analysts or users define the requirement scope with the vendor
business perspective. Once the scope is defined, we move to the next phase.

2 – Data exploration
In this step, Data mining experts gather, evaluate, and explore the
requirement or project. Experts understand the problems, challenges, and
convert them to metadata. In this step, data mining statistics are used to
identify and convert data patterns.

3- Data preparations
Data mining experts convert the data into meaningful information for the
modeling step. They use the ETL process – extract, transform, and load. They
are also responsible for creating new data attributes. Here various tools are
used to present data in a structural format without changing the meaning of
data sets.

4- Modeling
Data experts put their best tools in place for this step as this plays a vital role
in the complete processing of data. All modeling methods are applied to filter
the data in an appropriate manner. Modeling and evaluation are correlated
steps and are followed at the same time to check the parameters. Once the
final modeling is done the final outcome is quality proven.

5- Evaluation
This is the filtering process after successful modeling. If the outcome is not
satisfactory, then it is transferred to the model again. Upon final outcome,
the requirement is checked again with the vendor so no point is missed. Data
mining experts judge the complete result at the end.
6- Deployment
This is the final stage of the complete process. Experts present the data to
vendors in the form of spreadsheets or graphs.

Have a look at the below diagram for CRISP DM- Cross Industry-standard
process for Data mining.

Data mining services can be used for the

following functions
 Research and surveys. Data mining can be used for product
research, surveys, market research, and analysis. Information can
be gathered that is quite useful in driving new marketing campaigns
and promotions.
 Information collection. Through the web scraping process, it is
possible to collect information regarding investors, investments, and
funds by scraping through related websites and databases.
 Customer opinions. Customer views and suggestions play an
important role in the way a company operates. The information can
 be readily be found on forums, blogs, and other resources where
customers freely provide their views.
 Data scanning. Data collected and stored will not be important
unless scanned. Scanning is important to identify the patterns and
similarities contained in data entries.
 Extraction of information. This is the processing of identifying
useful patterns in data that can be used in the decision-making
process. This is so because decision making must be based on
sound information and facts.
 Pre-processing of data. Usually, the data collected is stored in the
data warehouse. This data needs to be pre-processed. By pre-
processing, we mean some data that may be deemed unimportant
may be removed manually by data mining experts.
 Web data. Web data usually poses many challenges in mining. This
is so because of its nature. For instance, web data can be deemed
as dynamic, meaning it keeps changing from time to time.
Therefore, it means the process of data mining should be repeated
at regular intervals.
 Competitor analysis. There is a need to understand how your
competitors are fairing on in the business market. You need to know
both their weaknesses and strengths. Their methods of marketing
and distribution can be mined. How they reduce their overall costs is
also quite important.
 Online research. The internet is highly regarded for the vast
amounts of information it contains. It is clear that it is the largest
source of information. It is possible to gather a lot of information
regarding different companies, customers, and business clients. It is
possible to detect fraud through online means.
 News. Nowadays, with almost all major newspapers and news
sources posting their news online, it is possible to gather information
regarding trends and other critical areas. In this way, it is possible to
be in a better position of competing in the market.
 Updating data. This is quite important. Data collected will be
useless unless it is updated. This is to ensure that the information is
relevant so as to make decisions from it.
After the application of the data mining process, it is possible to extract
information that has been filtered through the processes of filtering and
refining. Usually, the process of data mining is majorly divided into three
sections; pre-processing of data, mining data, and then validation of the data.
Generally, this process involves the conversion of data into valid information.

ADVANTAGES OF DATA MINING

Check out the below-mentioned Data mining benefits

1. With the help of Data mining, marketing companies build data

models and predictions based on historical data. They run
campaigns, marketing strategies, and pivots when necessary. This
leads to success and rapid growth.
2. The retail industry is also on the same page with marketing
companies. With Data mining, they believe in predictive based
models for their goods and services. Retail stores can have better
production and customer insights. Discounts and redemption codes
are based on historical data.
3. Data mining helps banks with financial benefits and updates. They
build a model based on customer data and then check out the loan
process which is truly based on data mining.
 4. Manufacturers obtain benefits from Data mining in engineering data
and detecting faulty devices and products. This helps them to cut off
the defective items from the list and then they can occupy the best
services and products in place.
5. It helps government bodies to analyze the financial data and
transactions to model them to useful information.
6. Data mining organizations can improve planning and decision
makings.
7. New revenue streams are generated with the help of Data mining
which results in organization growth.
8. Data mining not only helps in predictions but also helps in the
development of new services and products.
9. Customers see better insights with the organization that grows its
customer lists and interactions.
10. Once the competitive advantages are made, the cost is also
reduced with the help of data mining.
There are many more benefits of Data mining and its useful features. When
data mining combines with Analytics and Big data, it is completely changed
into a new trend which is the demand of the data-driven market.

Conclusion
It is important to note that it takes time to get valid information from data.
Therefore, if you are after making your business grow rapidly, there is a need
to make accurate and quick decisions that can take advantage of grabbing
the available opportunities in a timely manner.

Data mining is a rapidly growing industry in this technology-oriented world. Everyone

nowadays requires their data to be used in an appropriate manner and with the right approach
in order to obtain useful and accurate information.

Loginworks Softwares is one of the best data mining outsourcing organizations that employ
highly qualified and experienced staff in the market research industry.

Data mining is a form of business intelligence and data analysis. It is the process of analysing
data to draw useful conclusions or predictions from it. It’s a technique frequently adopted by
large-scale ecommerce businesses to aid with marketing and product development.

Because of the nature of the internet, ecommerce businesses will obtain a lot of data about
their customers, or their prospective customers. Data is obtained whenever a purchase is
made, an account is created, or a page view is made. This raw data can come from the
database associated with an ecommerce website which holds all account and payment
information, as well as from web analytics tools like Google Analytics.

If Google Analytics is correctly set up, whenever a visit to a site is made, information
about that visitor is collected. This information could be about the visitor’s journey
through the site, how they got there, what they searched to find the site, where they
went after the site, how long they spent on each page etc.

Data could also be about the visitors themselves. If the visitor is logged into a
Google account then the Analytics cookie will be able to read information about the
account. This allows the company to start using data mining techniques to build
visitor profiles to analyse the demographic of visitors to their site.