This website uses cookies to ensure you have the best experience. Learn more

Data Mining Essay

1983 words - 8 pages

Data Mining

Information Systems for Decision Making
10 December 2013

Data mining the next big thing in technology, if used properly it can give businesses the advance knowledge of when they are going to lose customers or make them happy. There are many benefits of data mining and it can be accomplished in different ways. The problem with data mining is that it is only as reliable as the data going in and the way it is handled. There are also privacy concerns with data mining.
Keywords: data mining, benefits, privacy concerns

Data Mining
Benefits of Data Mining for a Business
Data mining can be explained as the process of a business ...view middle of the document...

No one likes to feel like they are being spied on.
Another concern can be the worth of the data. The predictions are only as good as the data that it is presented with, as with other information systems, it is based on garbage in, garbage out.

Predictive Analytics Benefits
Predictive analytics sorts through the data that is collected and analyze the data for patterns from the customers. Then it will make suggestions based on the data of what the customer might buy next or not be interested in buying (Turban & Volonino, 2011). After the analysis it can be used to understand the behavior of the customers. There are many benefits that business can receive from predictive analytics. The following information can be beneficial to a business that comes from predictive analytics; the customers who respond to new products, and who respond to discounts, who buy specific product categories, which customers are most loyal, and which customers might not be using the business very much longer. This information is beneficial because, it can alert a business to when they might be losing a customer, and it gives the business the opportunity to reward the current and most loyal customer. It gives the business the opportunity to contact the customer that it might be losing and try to win the customer back or get the reason they are no longer using the business. It gives the business an idea of what products are more likely to sell when and they can plan accordingly. They can get more hot weather clothes in the warmer months because that’s when it has been predicted that customers buy hot weather the most and offer less cold weather clothes at the same time. IT would prevent businesses having overstock of items because the items didn’t sell because the items were offered at the wrong time of year.
Associations Discovery
Association discovery can be defined as analyzing data into relationships while sorting through a massive amount of data. Association discovery finds products of services that are associated together by a transaction. For example, if a customer buys chicken noodle soup they may also buy tissues because chicken noodle soup goes with having a cold and so do tissues, and they may have been purchased together multiple times by customers in the past and a pattern was noted. Sometimes a discovered pattern may happen by chance and finding the association may be time consuming and expensive. An example of association discovery is market-basket analysis, it also is a benefit to businesses because it can allow the business to offer the products that customers will buy when buying another product, and can be used for promotions and new products (Two Crows Corp, 1999). If in the past a customer bought soda and hot dogs at the same time, the business can have a special on hot dogs and then be able to promote a new flavor or bottling option for soda and the customer should buy both and the business will make a profit and benefit from the association...

Other Papers Like Data Mining

Data Mining Essay

1273 words - 6 pages (YourFirstName, YourLastName) University Name Data Modeling While the importance of data mining huge volumes of data from expansive volumes of data cannot be gainsaid, there are several shortcomings of data mining as outlined in the US Government’s General Accounting Data Mining Report. The unearthed findings are discussed below. Nascent Data Mining Efforts It is reported that out of the 128 federal departments and agencies surveyed

Data Mining Essay

869 words - 4 pages Data Mining In today’s society there is more data and information that is being stored it is hard to sort through it all and pick out useful information. All of this information is being stored in data warehouses which are basically a huge database filled with information collected over many years. This is why data mining is so popular, it has the ability to search through these huge amounts of data and find useful information, or will be able

Data Mining

2050 words - 9 pages Data Mining and Predictive Analysis Strayer University Information System for Decision Making CIS 500 Dr. Gregory Hart August 28, 2012 Data Mining and Predictive Analysis Determine the benefits of data mining to the businesses when employing: Predictive analytics to understand the behavior of customers Predictive analytics is used in business to forecast and model services and products to gain a competitive advantage

Data Mining - 4402 words

4402 words - 18 pages Data Mining Quality in Manufacturing Data Best Practices Approach To The Manufacturing Industry Data Mining: Quality in Manufacturing Data was written by Ken Collier KPMG Consulting and Gerhard Held SAS Consultants Curt Marjaniemi Don Sautter KPMG Consulting and Mohan Namboodiri SAS Technical Reviewers Knowledge Management Solutions Group KPMG Consulting and Development Group Business Solutions Division, Knowledge SAS October 2000

Data Mining - 1405 words

1405 words - 6 pages . The data analytics tool can guide the users so they can use an appropriate tool to build reliable data model (Coronel, Morris, & Rob, 2013). Data Mining Data mining technique automates the detection of relevant patterns and future trends in database. It allows a deeper search into the source data that includes data from data warehouse as well as other categories. The goals of data mining are threefold – 1. Explanatory – To

Data Mining - 1273 words

1273 words - 6 pages product group? Answer - ? Problem 2: Market Basket Analysis: Association Analysis Example 1: Our data mining program has performed association analysis and has generated a listing of items that are typically purchased together.  Two sets of items currently have your attention: o   Peanut Butter, Crackers             o   Peanut Butter, Vanilla Wafers How can you use this information? Answer - You can use this information to predict sales.  If

Data Mining - 1499 words

1499 words - 6 pages Assignment 4: Data Mining CIS 500 Professor: Dr. Edwin Otto Strayer University August 30, 2013 “Data mining is a process that uses statistical, mathematical, artificial intelligence, and machine learning techniques to extract and identify useful information and subsequent knowledge from large databases, including data warehouses” (Turban, 2011). Predictive analytics serves as a benefit of data mining because it’s a process that uses

Data Mining - 585 words

585 words - 3 pages Data Mining GS1140 – Problem Solving Theory Questions Being Addressed: Reason for question and its importance/contribution of answer, components, or variable of question * Crimes that occur around the holidays * We’re trying to analyze a crime pattern of the holiday season, how the public can protect themselves during the

Running Heading: Data Mining

1595 words - 7 pages 1 Mining Running Heading: DATA MINING Anthony Jerry Dr Otto CSI 500 Assignment 4: Data Mining Introduction: As we know data mining takes place in retailing and sales, banking, education, manufacturing and production, health care, insurance, broadcasting

Cis Data Mining

3013 words - 13 pages In today’s business environment, businesses must be able to sift through and analyze massive amounts of data to gain a competitive edge over their competition. Utilizing data mining techniques, businesses are given the ability to analyze data from different points of view and turn it into useful information that can be used to increase revenue, cut costs, or both (Jason.Frand, n.d.). In today’s environment, competitive businesses use what is

Video Data Mining

2329 words - 10 pages VIDEO DATA MINING Pooja Gupta Department of Computer Science Jaypee Institute of Information Technology, NOIDA, U.P. ABSTRACT In recent years, advanced digital capturing technology has made digital data grow rapidly. Knowledge discovery from massive amounts of multimedia data, so-called multimedia mining, has been the focus of

Related Essays

Data Mining Essay 989 Words

989 words - 4 pages TAKING A CLOSER LOOK AT DATA MINING Student’s Name: Maria Dang Teacher’s Name: Mr. Di Pietro Date due: Wednesday, September 11th, 2012 Class: ICS 3U1 Period: 1 Abstract: The following sections will discuss upon the topic, data mining; it is written to those who are of interest. As a matter of fact, data mining is just recently gaining a considerable amount of attention from a wide range of individuals, involving various strategic and

Data Mining Essay 1029 Words

1029 words - 5 pages Data Mining 6/3/12 CIS 500 Data Mining is the process of analyzing data from different perspectives and summarizing it into useful information. This information can be used to increase revenue, cut costs or both. Data mining software is a major analytical tool used for analyzing data. It allows the user to analyze data from many different angles, categorize the data and summarizing the relationships. In a nut shell

Data Mining Essay 1352 Words

1352 words - 6 pages Data Mining Professor Clifton Howell CIS500-Information Systems Decision Making March 7, 2014 Benefits of data mining to the businesses One of the benefits to data mining is the ability to utilize information that you have stored to predict the possibilities of consumer’s actions and needs to make better business decisions. We implement a business intelligence that will produce a predictive score for those consumers to determine these

Data Mining Essay 1657 Words

1657 words - 7 pages Data Mining: What is Data Mining? Overview Generally, data mining (sometimes called data or knowledge discovery) is the process of analyzing data from different perspectives and summarizing it into useful information - information that can be used to increase revenue, cuts costs, or both. Data mining software is one of a number of analytical tools for analyzing data. It allows users to analyze data from many different dimensions or angles