Data mining is the process of finding anomalies, patterns and correlations within large data sets to predict outcomes. Using a broad range of techniques, you can use this information to increase revenues, cut costs, improve customer relationships, reduce risks and more.
It has the capability of transforming raw data into information that can help businesses grow by taking better decisions. Data mining has several types, including pictorial data mining, text mining, social media mining, web mining, and audio and video mining amongst others.
The Basic Data Mining Toolkit
Data mining is a complex field that requires a diverse range of skills, including software, systems and data management. To succeed in the field, a capacity for critical and creative thinking is key — using resources and strategies innovatively can unlock valuable data patterns and insights. In addition, successful data mining requires mastery of many hard skills, from cutting-edge programming languages to technology resource management.
Python
Often referred to as the Swiss Army knife of the coding world, Python is a simple but versatile language. Its straightforward syntax results in readable, maintainable code, but its benefits go beyond ease alone. It’s an extremely adaptable language — equally useful for processing, analyzing and visualizing data — with almost endless applications. Many data analysts turn to Python for managing databases and developing regression models. Plus, it can be integrated into any existing infrastructure, which makes it useful in nearly every industry, from banking and sales to education and communication.
R and SQL
R and SQL are both popular programming languages among data miners. R was specifically made for statistical computing and is useful for storing data and accessing existing databases. In addition, it comes packaged with hundreds of libraries built specifically for data mining. SQL is the ideal counterpart to R, designed to request, extract, update and replace data in external databases. Combined, R and SQL provide an ideal environment for data mining, enabling businesses to seamlessly store, review and dissect data.
Quantitative Modeling
At its core, data mining is about extracting meaning from an otherwise unrelated group of data points. Quantitative modeling enables data analysts to do just that. Quantitative models are representations of data that identify, depict and even predict data patterns. By accounting for complex variables, these models essentially enable data analysts to “time travel,” shedding light on past revenue challenges and predicting future business opportunities. Nearly every aspect of a business can benefit from well-designed quantitative models, which makes expertise in quantitative modeling fundamentally important and highly attractive.
Infrastructure Management
Every organization needs to manage resources responsibly. In the data mining field, that means infrastructure management. Infrastructure managers ensure the overall effectiveness of data systems, equipment and processes. While they may not work with data directly, infrastructure managers need a solid understanding of data mining to maintain well-organized databases and support effective data mining teams.
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