A number of studies have shown that the amount of information stored in company databases has continued to increase at exponential rates.
Each day, millions of transactions take place, and many companies are finding that they must measure information stored in their databases in the form of gigabytes or terabytes. The problem with data is that it will not help you when it is not structured and organized. In order for companies to compete effectively, they must be able to search through large amounts of data within a short period of time in order to find information that they can use to increase their profits.
This is where data mining has become so popular. To become data rich, it is not enough to simply collect large amounts of information. You must be able to search, analyze, and apply that information in order to become successful. Once you have done this, you will be able to use this information to help you make important decisions which are related to advertising, investments, and marketing.
Because data storage devices have continued to fall in price, this has made it easier for companies to store large amounts of information. This has led to the creation of what are called data warehouses. A data warehous is a place where a company will store information about the habits of their customers.
A data warehouse is directly related to data mining. In fact, you can’t have one without the other. To collect information, you will need a place to store it. If you don’t have a place to store it, you won’t be able to mine through it to find important patterns and relationships. A number of studies have shown that more companies will have data warehouses within the next decade. However, having a location to store the information you have obtained is not enough. You must have a quick and organized method for storing and retrieving data. Another name for data mining is knowledge discovery. Knowledge discovery is a great way to describe it, because that is exactly what it is.
Data mining is a method of using computers to search through large amounts of data in order to find important connections and relationships. Once these patterns and relationships have been found, an individual or business will be able to make predictions which will allow them to make smart decisions which can increase their profits.
Data mining can help you answer questions that would have been difficult or expensive to answer ten years ago. Data mining is a direct result of the increases in computer processing power that were predicted by Moore’s Law. Because computers double in processing power roughly every 18 months, it was only a matter of time before data mining become technologically feasible.
It is important to note that data mining is a new technology that has not fully matured. It has potential applications for hospitals, insurance companies, retail stores, government agencies, and the military. It is a result of computer science and the branch of mathematics which is known as statistics.
Despite the fact that this technology is fairly new, many companies and organizations are already using it. In our world of information, it is not enough to simply gather or compile data. You must be able to analyze that data in order to find important connections and relationships. Not only must you be able to do this, you must also be able to do it within a short period of time.
The companies and organizations which are able to quickly find patterns, connections, and relationships within a body of data are the institutions that are the most likely to succeed in the information age.
If you organization or business is not able to collect, analyze, and apply information within a short period of time, it will be difficult for you to succeed. Knowlege is power, and those that are in the dark can’t compete against those that are in the light. In our world of information, the goal of any business or entity should be to quickly collect information and analyze it, looking for important patterns that will allow them to make strategic decisions. This is what data mining can allow you to do.
