Forbes once reported that even the slightest increase of investments in Big Data related projects (~ 10%) improves average net income by $65 million for all typical Fortune 1000 companies.
Knowledge is power. Fortunately, the amount of power in this world is immense. All that’s left for you to do is to find efficient ways of using that power.
A typical business acquires lots of information and is obligated process it correctly. Data volumes skyrocket, hence more analytical power is required. You simply can’t afford to lose your grip of adequate analysis, because you’ll miss out on profits.
Here is some food for your thought: Red Roof Inn, a well-known hotel chain applied data mining methods to a diversified set of available content that included weather information, flight cancellation, airport locations, hotel locations, etc.
This set of data allowed them to find clients that needed a room since their flights were canceled.
Usually, bad weather is a bad sign for hotels, as it reduces traveling. However, Red Roof Inn found a way to improve their income. Reportedly, their business increased by 10% in 2014! Go data!
Yes, you have to invest in BD, but just look at the returns!
Data mining is a very interesting term that many specialists claim as “misused”. The term refers to the process of gathering data, which is not entirely correct. When we say Data Mining, we usually mean a plethora of data curation and management processes performed to summarize the data into something meaningful.
In simple words – you have assorted information about your customers. They perform various actions and leave a digital trail via your technical support system or in any other way. Many believe that this information stands for the quintessence of BD.
Yet, sadly, all that data is just a dumpster of random facts. Unless it’s properly categorized.
Alas, there’s simply too many data to handle without efficient computing force.
Modern manufacturers have to consider various machinery readings to avoid unnecessary maintenance expenses:
- Retailers need to track purchase histories to develop new marketing methods;
- Websites keep an eye on various sources of useful information to improve their monetization mechanisms.
Don’t waste information, systemize it and see which products are more popular and what technical issues they cause.
The total amount of data has grown to an unimaginable scale and it doesn’t plan to stop growing. The “dumpsters” appear more often and become more complicated. Fortunately, our computing capabilities are keeping up with that growth. There are various solutions such as DMP (Data Management Platforms). The best Big Data management platforms operate with an immense amount of information coming from a wide variety of sources.
Big Data analysis: proven benefits of the smarter approach
Data mining has a set of certain goals and one of these goals is to identify patterns in data and make these patterns visible. This method of research is helpful for clustering and systemizing purchasing behaviors. I cannot name a single industry where such information is essentially useless. Au contraire, I believe that any company will benefit from data mining.
There are numerous examples illustrating how big data and proper data management immensely improved business efficiency.
Every single successful business nowadays uses big data analysis and some surveys claim that more than 70% of companies are ready to invest more in their data management projects!
In fact, there are many inspiring stories regarding Big Data and how it affects us. For many people, those are but shady numbers or random big figures they can awe at. However, smart businesses are looking at the big picture from a different angle.
There are millions of stunning examples. But don’t take my word for it. Here’s a shining gem that could have never been revealed without appropriate analysis.
Not long ago, Midwest Grocery network used Oracle software computing capabilities to get a more comprehensive picture of local buying behaviors. They identified a couple of mind-boggling details about local purchasing habits.
A curious discovery improved beer sales. Yeah, people love beer. What’s the big news? The new beer sale pattern was invented from careful analysis of… diaper sales.
Oracle highlighted an interesting connection between beer and diapers. Men who shopped for diapers on Thursdays and Saturdays bought some ice-cold beverages as well.
Deeper analysis showed that these men usually made more purchases on Saturdays and less on Thursdays. Midwest Grocery chain used that information. They moved their beer displays towards diapers and never put discounts on these items on Thursdays and Saturdays.
Should YOU Use Data Mining?
Bid Data development services include a wide array of offerings. Most of them relate to analysis and curation of various information types. Or, at least the ones that actually affect your business do.
Companies that do not use data for improvement lag behind their competitors. Often, their business model stagnates and quickly becomes less profitable than it could be.
Now it’s time to talk about Data Mining reality instead of wannabee, “good enough” fiction. Specialists have named 5 of its core elements:
- Storage. You need to gather, modify, and transmit data from various sources to one certain location in order to work with it.
- Sorting. The information in our storages must be properly sorted and systemized within multilayered databases.
- Assesment. Raw data should be accessible by both technologists and business analysts.
- Computing Tools. The information is still assorted and you will use it inefficiently without comprehensive methods of analysis. This is where smart businesses use the best big data management platforms and contextualize their data.
- Representation. We want our information to be clean and presented in a usable format like tables and graphs.
Pro tip: Great specialists think that business understanding is also a necessary part of data mining.
As you see, data goes a long way before it can be transformed into something useful.
Just think about you own business. If you are not using the latest technological solutions, you quickly become irrelevant.
Data mining is not only a time-tested method in business, it is also improving constantly. It helps you in understanding how seemingly irrelevant information can directly affect your income. With proper data management, you will be able to see the context of your customers’ actions!
This will help you to develop a better marketing strategy!