What is Data Mining?
Data mining is the activity that organizations engage in by extracting data from the available raw data sets using techniques such as artificial intelligence, database systems, and machine learning statistical analysis for an increase in revenue, risk reduction, improved customer relationships, etc. This activity is usually carried out with the help of special tools or software referred to as data mining software or data mining tools.
What is a data mining software or a data mining tool?
A data mining software is a software used by many organizations to extract data from the available data sets using techniques such as artificial intelligence, database systems and machine learning statistical analysis for an increase in revenue, risk reduction, improved customer relationship, etc.
An organization can Extract data from different sources that will help in the identification of hidden profitability and increase revenue. Data mining software has a special data handling and storage feature which can help a business to extract, transform, manage and store large amounts of data. Data mining software supports an increased amount of data without difficulties. This will help make things easier for a business for their profit earnings ratio and reduce the cost of many business processes.
Data mining software can help a business gain insights from the data on the thousands of customers they serve.
The data mining software can help with its feature “model the extracted data” using the data modelling techniques to show similarities and dependencies essential for predictive analytics.
With the anomaly detection feature, data mining software can also help a business in identifying unusual data records that may require further investigation.
A business can create risk models and detect frauds with the help of data mining software. Data mining software can help minimize clients’ participation in data mining. This feature will help in extracting more accurate data about individuals. It will therefore help reduce fraud and discover fraudulent acts and products in the market.
A data mining software can help a business in determining customer groups and customer habits. The Clustering feature of data mining software can help the business leaders to discover customer groups and the classification feature will help classify the discovered customer groups. The association rule learning feature of a data mining software can also help in searching for relationships between individuals of a group.
Data mining software can help in decision-making. So many features of data mining software can help managers in decision making. Dashboards, visualization, and visual programming feature and Data summarization feature of a data mining software can help the managers to view analysed data in a more understandable form such as data represented with graphs, pie charts, scatter plots, geographical maps and tables. Information presented this way can help in easily and quickly making marketing decisions. Also, the regression feature can help managers to find the function and techniques of data modelling with the least error to estimate the relationships amongst services, goods, and customers.
Examples of data mining software tools