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Posts Tagged ‘process’

An Overview of the Data Mining Process


How Does Data Mining Work?

Perhaps you have heard of data mining and are wondering how this useful tool could help your business, but you aren’t sure where to start. It’s likely that you have a wealth of data amassed from your various business transactions, but how does the process of mining actionable information from this overwhelming collection of data really work?

Certainly, the ability of a company to collect data about their operations has improved with the growth of technology. With today’s emphasis on digitized processes, and the necessity of a company to maintain reliable historical transaction data, most companies can be described as ‘data-rich’.  However, just as many business are also ‘information-poor.’  They are awash in data, but don’t really understand what all that data is telling them.  The process of data mining allows a company to extract valuable insights and actionable information from data which will ultimately assist and inform important business decisions.

How to Prepare for Data Mining

When one sets out to mine data for useful insights, one must first assess the quality of the available data in the context of business objectives. Hopefully, the data to be mined is comprehensive and thorough; however, analysis can only begin once records have been checked for accuracy and completion and updated as necessary. Once this type of preparation has been done, the result is a clean set of data through which associations and predictive measures can be developed.

But most importantly, an organization should first conduct a comprehensive, methodical assessment to fully itemize and evaluate business objectives, team capability, environmental readiness and data capability.  A separate full article written by TMA’s president and published as the feature in BI Trends & Strategies  focuses on how and why to prepare for predictive modeling, …and why those who jump directly into the data are destined for failure.

Beyond the Basics

Although most organizations can acquire software and start building adequate models, it’s rare that they succeed at the project level.   Training and guidance from highly seasoned data mining consultants goes a far way to avoid starting projects prematurely, ensure that technology investments are right-sized, and establish a solid project definition that ensures a low-risk / high-impact methodical approach to the practice. When a company works with The Modeling Agency, they gain the advantage of the most current practices in data mining, allowing them to extract truly useful and accountable information with which to make informed and anticipatory decisions.

To learn how The Modeling Agency can help your company gain insights that will reduce costs and increase revenue, consider attending one of TMA’s training courses, or register for a free data mining webinar.