Last updated on October 18th, 2022 at 05:42 am
The emergence of technology and the availability of large amounts of information data, it is quite difficult for organizations to deal with complex data storage. The challenges faced by organizations in analyzing, discovering, and understanding the information had led to Big Data emergence.
What is Big Data?
Briefly talking about big data, it is the computerized processing of large amounts of information, exceeding the capacity of conventional software to be captured, managed & processed within a particular time.
Classification of Big Data
Big data is normally classified into various categories
- Web and social media content
- Machine to Machine
- Big transaction data
- Biometrics data/human generated data
In short, big data is a large volume of information comprised of various features. It is therefore important that the system speed should be quick in order to extract the right information.
Data Mining Overview
Keeping in view necessary data stored, it is important to consider techniques of data analysis like clustering, association, and data mining. Data mining in this respect plays an important part because it is used to extract data, analyze it from various perspectives, and forming a summary of the information.
What is Data Mining?
Data Mining is the process of finding patterns among number of fields in huge amount of interlinked databases. The two parts of data mining i.e. predictive which makes forecast on behalf of data while descriptive which gives information about existing data.
Where Data Mining is used
For instance, a number of organizations uses data mining to take wise decisions and predict the future. In particular, customer centered organizations, retail, marketing, communication and financial organizations dig deep into financial transactions, customer preferences, pricing and product positioning.
Data mining in general tried to figure out the content of big data. It is based on:
- Extract, transform and load transaction data on a data storeroom system
- Store and manage data in a multidimensional database system
- Transform the data in a format like table or graph
- Examine the data by application software
- Provide data access to business analysts and IT professionals
How Data Mining is used to Generate Business Intelligence?
Apart from gathering information, it is also important to use the information in the right way. For this purpose, it is vital to have Business Intelligence.
Business Intelligence is the ability to transform data into information and information into knowledge. This helps in making right decisions in the business process.
In short, Business Intelligence is the series of systems, applications and technologies to collect enhance and transform the data from transactional systems and unstructured information in structured information for analysis.
Business Intelligence associates data analysis applications, which includes ad hoc analysis, querying, online analytical processing, real time BI, open source BI, location intelligence, collaborative BI, enterprise reporting, cloud and software as a service BI and mobile BI.
BI technology also comes with data visualization, performance scorecards and performance indicators, and tools for developing BI dashboards. Moreover, these tools help in figuring out the ways in which competitive edge can be gained through efficient business operations and risk management.
Data mining tools offer better customers relationship management through mining diverse patterns and real habits. Business Intelligence should be used to incorporate techniques in order to benefit the company.
Business Intelligence thus acts as a strategic factor for a business, offering insider information to address business problems, entering new markets, production planning, profitability, cost optimization and analysis of customer profile. This is how data mining is used to generate business intelligence.
For instance, the benefits of using the Business Intelligence program can offer perfection in making decisions, enhancing internal business processes, driving revenues, gaining a competitive edge over business rivals, and increase in operational efficiency. Business Intelligence systems also help in identifying market trends and address business problems.
Business Intelligence is a widely trending term signifying the tools and systems that play a pivotal role in the strategic planning process of the corporation by transforming knowledge into profit. Business Intelligence and Data Mining have opened endless possibilities for various industries like health organizations, financial institutions, and sales and marketing. All of these analyses of data will improve the quality of the decision-making process in their industries.
Moreover, Data Mining technologies hold a very bright future in business applications, which will enhance new opportunities by the automated forecast of behaviors and trends in these businesses. Thus, business intelligence and data mining will be a concept that will be the talk of the town in the near future.