Discover Data, Discover Value

Recently, our data mining professor, Mr. Mon Duremdes has discussed the importance of data warehouses and data marts. Using volume warehouses like Makro and smaller retailers as an analogy, we actually came to understand how these large banks of data can work for a company. In line with that, this is another blog post exploring data mining and its impact to business students like me and Telecommunications, our chosen industry.


Acoording to the article "Discovering hidden value in your data warehouse" from thearling.com, data mining is the extraction of hidden predictive information from large databases and according to an article I read, gold mining is the process of removing gold from the ground.

Data mining and gold mining are very similar. The large databases are likened to the ground, other data is like the dirt and soil and the value we find in data is the gold. Since the beginning of history, gold has been a highly sought after material which can be compared to the value we look for in databases.


Extraction.Value in the "dirt". Refinement.


Data mining, a product of intensive research and development, supported by technologies like massive data collection, powerful computers and many data mining algorithms is now very much ready. As mentioned in my previous post, it can now be used to one's advantage and gain.


It is an established fact that data mining provides the dynamics to businesses today and this is because data mining is not what it used to be. It has already evolved from the retrospective, static data delivery to a prospective and proactive information delivery which makes it a very practical tool nowadays.

After data is refined and filtered, it can be used to predict
trends, patterns and things that are likely bound to happen.
Ensuring better decisions and optimized solutions,
it brings value to businesses by cutting costs and
even improving yield.

Trends and patterns are very important to businesses like Telecommunication companies. By exploring patterns, they can actually see how their network is used and the people using their network. Using these trends, they can also predict what might happen during seasons like the summer and other holidays. They can also use this information to market their products to their subscribers. An example would be the growing number of students needing internet connection at home. This fact could tell them that marketing their broadband and internet services near schools and places where students hang out would increase their revenues.


How exactly does it work? Data mining uses a technique called modeling. Modeling is like finding answers to things you don't know. Searching for hidden facts, sniffing tracks left by others, all of which that can lead to what you look for. This technique can be compared to looking for treasures or investigation. Another technique is called prospecting. This is the process of identifying the target markets and catering to them spot on.


Again, relating to techniques used by Telecom companies to finding subscribers, through data mining, they can now study their subscribers' spending patterns, call and text patterns and the repetitions. They now know what advisories and updates to send their users. These updates are the kinds that, somehow appeal to the mobile phone users and which are likely to be read, bought or subscribed to.


The article also said that data warehouses and business analysis tools should work hand in hand. The data warehouse should work in your favor. So, the more the data collection is, the more value can be gathered from it. Just like gold mining!


The second article discussed data mining techniques and the difference between statistics and data mining is explained. Actually, I also thought that data mining is also like statistics with all the data and everything BUT that was a common misconception. Statistics, in some way, works for data mining as it is a tool in the process of data collection and analysis. As statistics deals with risk and uncertainty, data and its organization helps reduce the risk by presenting useful information through the collated data.

Statistics and data are actually partners to achieving results. Smart Communications and other telecommunication companies cannot work without studying the information they need.

Let's say a company finds out that their product sells best during a certain season or to certain market segment like teens, this information can be used to enhance and reinforce marketing, promotion and sales force. The company can now find ways to make the product sell more.


It has been mentioned a lot of times that many use data mining but there are only a select few who can use it to gain advantage.This is also true when discovering hidden value in data. Discovering the value in your data can be hard work like mining gold. Therefore, the perspectives to consider should be clear and can be used by the users. Data should work to your advantage.


Finding ways to earn using your information? That's hidden value!


Data, like gold, has to be tried and purified by fire. That's when you find the value you look for. Data is valuable. One discovery can lead you to another.


Read more about discovering hidden value in your data in Camille's, Chabby's, Julie's and Ikah's blogs.