Data Mining

¶ … algorithms that can mine mounds of data that have been collected from people and digital devices have led to the adoption of data mining by most businesses as a means of understanding their customers better than before. Data mining takes place in retailing and sales, banking, education, manufacturing and production, health care, insurance, broadcasting, marketing, customer services, and a number of other areas.

The analytical information gathered by data-mining applications has given some businesses a competitive advantage, an ability to make informed decisions, and better ways to predict the behavior of customers.

Write a four to five (4-5) page paper in which you: Determine the benefits of data mining to the businesses when employing: Predictive analytics to understand the behavior of customers Associations discovery in products sold to customers The collected data can help the manager determine which products best interest the customers and which may interest them in the near and further future. Economics is a fluctuating, unpredictable world with fashions and economics happenings in the fields fluctuating. Certain fields are more unpredictable than others, and tastes in fashions can change.

This is particularly so in certain fields such as those of entertainment and clothes. Data mining in predictive research can help the business determine how to structure its operations in order to continue maintaining and attracting more customers. Web mining to discover business intelligence from Web customers Web mining is used for the three-fold purpose: Content mining, - which examines the data collected by search engines and Web spiders.

Structure mining, - which examines data related to the structure of a particular Web site Usage mining -- which examines data related to a particular user's browser as well as data gathered by forms the user may have submitted during Web transactions. (Search CRM.) In each of these ways, the data mining helps the business know what the web customer is interested in. He then slants his products / services and way he presents these products / services accordingly.

Marketing, for instance uses this route as well as deciding which target customer to approach, which products to invest in, and how to market those products to appeal. It may also help him decide which marketing venues / social Medias apps to adopt. Clustering to find related customer information Assess the reliability of the data mining algorithms. Clustering is looking for patterns in similar information and seeing whether one can aggregate any predictions or any inferences for ways of conducting the business (for instance) to better satisfy and win customers.

Clustering is not always helpful since correlations may not always indicate a specific cause or tendency. Logically speaking too, generalities or various patterns may not mean that customer's behavior in a specific component is that way too. For.