What Is Data Mining And How It Affects You

data mining

Every now and then you must have heard that in future data will be the king and data will be everything. Companies have even started to take data very seriously and hence comes the term data mining.

Data mining is basically a process to extract usable data from a set of any raw data. If we put that in simple words, it means that many companies are mining public data from their records and even from the internet so as to gain greater knowledge about the needs of their customers. The data mining is done by the companies so that they can stay ahead of their competitors.


How Data Mining Works


It is a very complex system, let us put it in very simple words:


  • Extract, transform and load the data in the data warehouse system.

  • Store and manage the data in multidimensional database system.

  • Provide access to data analysts and information technology professionals.

  • Analyse the data by a software.

  • Present the data in a useful format, such as graphs etc.


Key Requirements For Data Mining


  • Technological infrastructure is required.

  • A large database is required.

  • To process complex queries and data, a powerful system is required.

Key Aspects Of Data Mining


  • It focuses on large databases for a detailed analysis.

  • Trend and behaviour analysis is  used for automatic pattern predictions.

  • Likely outcomes affects the predictions.


Uses of Data Mining


Mainly it is used to understand and influence the customers in a way desired by the companies. There are many areas where the mining of data is being used. Here are some of them:


  • Education: As there is cut throat competition everywhere nowadays, top institutions and universities are mining students’ data so as to ascertain students’ satisfaction and also to attract more number of students towards them.

  • E-Commerce Industry: Giants of the online market such as flipkart, amazon are using data mining to predict what the customers might buy next based on their order history and metrics like gender, age etc.

  • Mobile Network Companies: With the advent of easy mobile number portability, customers changing from one provider to another has become a major problem for the providers and hence their data is being constantly studied so as to predict the probability of the customer staying with the same network and hence are provided with lucrative offers. Now you know why your friend get a better offer and you don’t or vice versa!!

  • TV & Film Industry: Nowadays web series are a very common thing, the bigwigs like Netflix, Amazon Prime uses the data mining technique to predict the behaviour of their audience and come up with the shows that suits their audience well.

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The list of uses of this technique of mining the data of users is not exhaustive and is being actively used in many industries to influence the customers. It is also being used to design products based on the study of the consumers’ data.

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Hence it is a two faced sword which could be very helpful as well as very harmful to you, so be careful with whom you are sharing your data because you never know for what study or research your data might be used.

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