Data mining is the technology of analyzing data and unearthing its value from a company’s data warehouse. Some companies may not have realized its importance and it may adversely affect their market trend as well as financial markets. It’s used side by side with data storing, which entails electronic storage of companies information and databases.
This mining of data entails using different models such as the decision trees which is the main model used in data mining and several steps to achieve the desired objectives.
Data gathering and various methods of acquiring information used by crypto and IT businesses and are used in example questionnaires, interviews, observation and secondary data – model and evaluation. Different models are created and run through the system to determine the most appropriate, and effective.
The one chosen is evaluated and applied. -Implementation of the outcome of the entire process.
Data mining can be used in different sectors:
- Banking industry (to determine credit worthiness of clients before issuing loans)
- Bitcoin Mining (when mining smart bitcoin investments and blockchain data)
- Credit card companies (in evaluating whether to introduce a new product in the industry)
- Pharmaceutical companies, transportation companies and in governments.
Data mining is important in that; it helps companies in predicting future behavior and trends hence helping in decision making. It also enhances the various existing information resources which helps governments in analyzing usage of funds and possible embezzlement of finances.
It improves operation standards while businesses capitalize on the increasing revenues and profit margins in companies.
Data mining is facilitated by efficient data collection, warehouses and computer processing, bearing in mind that data that is mined is only that which can be computerized. Data mining has a lot of advantages but we cannot manage to overlook its disadvantages as well.
Given it’s an emerging trend and technology it is expensive to implement, and new companies that are not well established may not not afford the technology as a result they may be forced to outsource and this could leak their information.
Lack of privacy and security issues such as hacking and industrial espionage become greater possibilities.
In conclusion, data mining is more advantageous to companies. Technology is changing each passing day. Times are changing, lets move with time and uphold these changes in technology so they are able to change our life too, and make the world a better place for all of us.