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Successful businesses are the one which is data-driven. Microsoft, the tech giant has acquired LinkedIn at a premium price of $26.2billion, to grow its professional networking site. And integrate it with its software MS Office 365. This allowed the tech giant to reach LinkedIn’s enormous user base. And spike up its sales and distribution at an excessive rate. But it’s not as simple as it seems. Having the data available with you will not make any sense. Until you are able to extract the exact information from it. As per grand view research, in 2019 the market size of alternative data was valued at USD 1.06 billion globally. And is anticipated to grow at a compound annual growth rate (CAGR) of 40.1% from 2020 to 2027. With this hefty amount of data becoming available to the organizations, it has become crucial for them to use it to its optimum limit. The data is of no use if it can’t provide any information. In today’s world, companies own far more amount of data than they can digest. To unearth the hidden meaning and benefits from the data, there is a need for Data Mining.

What is Data Mining?

Data mining helps us see the forest without getting lost within the trees. As Atlantic rightly puts it, the absolute scale of data has already unimaginably surpassed human sense-making capabilities. At these scales’ patterns are mostly too subtle and relationships too complex to perceive by simply gazing at the data.

It is a process used to extract useful information from raw and scattered data to develop a meaningful insight for further business strategies. This knowledge largely supports increasing customer loyalty, recognizing hidden profitability, and reducing client churn rates. 

Why businesses are looking for Data Mining?

Data mining is nothing new. It has been getting used for ages to strategize the plan for achieving the purpose.

During the war, the exact count of soldiers and ammunition held extreme importance to strategize the winning plan by the kings. Telling that the opponent has too many soldiers can never help in winning the battle. But knowing their exact count, area, weapons help the leader in devising the proposal to win the battle.

A generous amount of data is getting poured on the servers of the organizations every day, businesses have to invest time and money to get the best information out of it.

With the help of Data mining, businesses can visualize the trends and patterns which in turn supports them in insightful decision making.

Data Mining, a boon to industry 4.0

Data mining isn’t an easy job, it has to be done meticulously to get the best results.

As many experts say, the 4^th revolution is here, and the only thing that shines in this revolution is the data and its use for business success. Industry 4.0, or the fourth revolution, involves harvesting the information, i.e. making sense of data, that comes from sensors, aggregators, cloud computing, and the Internet of Things, to name a couple of, to obtain more profit and run companies, factories, and organizations more efficiently.

The connected processes and systems previously unconnected generate new insights and innovation and the rise of artificial intelligence. Early adopters of Industry 4.0 practices have reported greater resilience to crises, including the Covid-19 pandemic. 

As per the survey conducted by Mckinsey, 65% of respondents said that their perception has increased for Industry 4.0 since March 2020.

Benefits businesses are reaping from Data Mining

Many organizations have their on-cloud and on-premise servers loaded with data, but they are not able to convert that raw data into knowledgeable insight. 

Here, Data Mining has played a marvelous role in the profit reaping for organizations. Let’s see below how it has been a value add to many businesses;

1. Optimize marketing campaigns – Data mining helps businesses realize which marketing campaigns have a maximum probability of generating the most engagement, categorizing customers, pushing custom-made advertisements, and enhancing their promotion spend.
2. Innovate – Data mining supports companies to figure out what appeals to their customer and what innovation is needed for their product/service. Customer feedback and expectations play a great role in innovation strategies.
3. Better Decision Making – Your business data makes you more confident to decide based on figures and facts, instead of inclining towards mere intuition. For example, your instinct may tell you that your product is not selling because of its high price point while data analysis reveals the artifacts, that it’s actually because of fewer distribution channels.
4. Reduce Employee Attrition – Data mining not only helps improve external market performance. But can also be used to understand employee behavior, predict attrition, and evaluate HR policies.
5. Brand recognition – Data mining collects and processes a great volume of unstructured information (such as comments, posts, tweets, images) shared on social media, which is further used to review your digital presence.
6. Market Basket Analysis – This feature enables the organizations to predict their customer behavior. And act more swiftly and smartly, by recommending the necessary product to purchase looking at their existing cart. It can even suggest when and how to remind the customer about the left items in their shopping cart.
7. Detect Potential Fraud – Data mining helps organizations to spot out suspicious activities and foresee the potential fraud. For example, Banks and insurance agencies use data mining techniques. To highlight customers likely to default on the payments of premiums or make fake claims.

Common Challenges involved in Data Mining

• Data Mining needs large databases and data collection that are difficult to manage.
• The data mining process requires domain experts that are again difficult to find.
• Integration from heterogeneous databases is a complex process.
• The complexity of the Data Mining tool increases with the data.
• The organizational level practices need to be modified to use the data mining results. Restructuring the process requires effort and cost.

Conclusion 

With more data collection from the customer, more value could be delivered. And the more value you can deliver, the more revenue you can produce. But the only catch here is, you should be able to make sense of the collected data.

The deeper you go; the more complications will increase in Data mining irrespective of the smaller or the bigger organizations. No matter what business you are in, your competitors are also working with the data rigorously. If you want to maintain your position or keep moving forward, data mining is the answer to keep a hold on what is trending in the market. And how it can assist you on the path of success, supporting you to make more informed action.

Businesses should always consider the best data mining organizations or experts to drive their decision-making.

And what’s better than consulting a strong firm like Oriental Solutions to drive your business on the path of exponential growth.

To take your business to the next level, contact us or email us @ info@orientalsolutions.com or call at +91 95000 47196 For the latest updates, follow us @ https://www.linkedin.com/company/oriental-solutions-private-limited/