What is data mining?

The data mining or also known as data mining, is a process that extracts important information from significant databases, this information determines the efficiency of the company through trends and factors so that the user can solve any difficulty of the company generating competitive benefits.

The tools in this process can be used to forecast the new perspectives and the possible future situations of the company, which is very important in proactive decision-making.

The data mining techniques They seek to automatically discover all the content of the information that is stored in an orderly manner in significant databases.

The goal of these techniques is discover profiles, trends and patterns through data analysis through the use of technology that recognizes networks, logic, patterns and other advanced analysis techniques.

Main stages of data mining

Although in this type of process each case may be different from the previous one, the procedure for all has the following main stages:

Determination of problems or objectives

Any project with this type of process begins with the knowledge of the commercial problem. The experts in data mining, in domains and businesses collaborate working with dedication in order to determine the requirements and objectives of projects visualizing them in a commercial way.

The objective of a project defines the problem, therefore, in this phase the tools of this type of data processing are not required.

Data search

Domain experts know that metadata is based on collecting, describing and searching data, just as they can determine data problems. In this sense, it is very important that business experts and master's degrees in data mining carry out exchanges on the definition of the problem.

In the data search phase, statistical analysis tools are used to perform the search.

Data organization

Domain experts design a data model to carry out the modeling process. They can collect and format the data, as there are mining functions that only accept data in specific formats.

In the process of this phase, the data is modified several times. The organization of the data for the modeling tool is chosen through records, tables and attributes. Mining experts make a selection and apply different functions for the same problem with certain data collection.

Modeling

In this phase together with the evaluation, they can be repeated several times to make changes to the measurements until achieving effective values, therefore, at the end of this phase, a model of quality.

Evaluation

The experts with master in data mining perform model evaluations. In case the model does not meet expectations, it is necessary to return to the modeling phase and you will have to redesign, making modifications to the parameters until better ones are achieved values. Once they are adapted to the model, explanations can be obtained from the company.

Process

Finally, they use all the results by exporting them in different databases or in any other type of application.

Data mining techniques

This type of process is based on different techniques, these are:

• Induction rule: Refers to the derivation of a set of rules that can determine the problem. These rules are totally independent and are usually similar to the decision tree, however, they do not have to be part of it.
• Grouping: It is a type of technique that seeks to find links between the objective variable and the descriptive variable that has no link.
• Artificial neural networks: Consists of the behavior of human neurons, indicating that they are based on a number of units and artificial neurons that are related to each other in order to transmit various signs.
• Hierarchical algorithm: This is a technique that seeks to create a certain hierarchy of groups. The strategies that are used for this type of grouping are determined as a bottom-up approach or a top-down approach.

Advantages of data mining

The data analysis that is carried out through data mining can generate great advantages to companies with the in order to improve their development, also to attract and retain their customers who are the ones who allow the increase of sales. Among its most relevant advantages are:

• It has the ability to perform database analysis through large amounts of data.
• It helps to find and also to retain customers.
• Before using any model, they can be checked through different statistics in order to verify the validity of the predictions obtained.
• The identification of patterns allows the company to design better solutions to be offered in the market, either by creating innovative products or improving existing ones.
• It allows obtaining unexpected information, since it works with algorithms due to the execution of different combinations.
• It gives companies the opportunity to offer their customers the products or services they need.
• In conjunction with lower costs, conversion rates can increase significantly thanks to the assertive customization of the offers, resulting in an optimal return on investment.
• The results are easy to interpret and does not require great computer skills.

The data mining It is presented as a technological process that comes from different benefits, on the one hand, it results from the relationship that exists between researchers and people linked to the business system and on the other hand, it allows the saving of large sums of money in a company and helps to generate new opportunities for business.

There is no doubt that carrying out work with this type of technology requires a series of details, since decision-making is involved in the final product.