What is Data?
Data is qualitative and quantitative set of information. The data can be found universal. We are surrounded by huge data resources. Data initially found in raw form and then conveniently converted into meaningful and useful information (Data Mining) . Data is vastly used in statistical survey. Collection of data is the first and most important stage in any statistical survey.
There are 2 main sources of Data collection:
- Primary Data Collection: Primary data are in original form and collected for the purpose of specific inquiry or study. In this method, data are collected for the first time.
- Secondary data Collection: Secondary data are extracted from the other available data processing sources, which has been collected and used by other people. This type of data can be collected from internet, books, govt. publications, newspaper etc.
What is Data Mining?
Data is useless until it is in the raw form. Understandability of a data depends upon its way of presentation. An organized data can only be used for any purpose. Data when converted into a meaningful pattern, than it is called Information.
Data mining is the way of extracting useful information from a raw data. Data mining is a continuous process and required deep evaluation. If you really want to use the available database in an effective manner, then you will have to undergo this process.
Why Data Mining is Important for a business?
In a business data mining process is considered as an important part. This process helps to evaluate the relationship between internal and external factors of an Organization. Below are the points describing the significance of Data mining:-
- Prediction in different sectors: Prediction is the core part of an organization. Prediction on different sectors like price, production, market position, sales, demand, customer satisfaction, etc. is needed to overcome the possible risk.
- Fraud detection: Time to time data evaluation helps to identify the scams or mistakes and to rectify them on time. Fraud detection will help to maintain the quality of work and will also minimize the cost.
- Trend analysis: To gain the advantage over your competition, one should have the updated knowledge of market and demand. Trend analysis helps To know the consistent result and to respond it accordingly.
- Market evaluation: To be in the market, you must have the answers toa few questions like, what is the demand in the market? Who are your competitors? What are their strategies? What is the value of the products you are dealing within the market? Etc.. A well maintained, updated database will help to know all. Market evaluation is very important not only at the beginning of the business, but throughout the business cycle.
- Save cost and time: Initial data evaluation not only saves your time but also will save the unwanted cost.Forecasting on different business sections will help to lower the cost which may arise from investing in the wrong section. A well maintained database will support to run a business more effectively.