How Does Data Mining and Business Intelligence Affect You and Your Business?
HP (Hewlett Packard Company) made the decision to abandon their pursuit of the tablet computer market in the year 2011. Research in motion from Canada, lost over 70% of their market capitalization in that same year due to a number of factors, including an inability to update their famous BlackBerry product to satisfy an insatiable market. These are just a few examples of how companies are business-intelligence driven today. Let us look at one more example.
Apple computers may be flush with cash right now, but unless certain labor issues in China, where they manufacture all their, are addressed quickly, they may begin to see a decline in sales and profits. What do all these companies have in common? All of them could use more information already hidden somewhere in their large databases of customer and product data. Data mining for business intelligence is no joke, and any failure by today’s successful companies to unearth and use this pertinent information quickly, can cost them big bucks!
In my day job, my assistant is reading for a Master's degree in Information technology, slogging through the vagaries of Data Mining and such topics. At first glance, some of these topics, such as Data Mining hardly seem worth the hours of study, classes, and projects. But there are implications for the under-use of this field of I.T. which often seems to have no immediate value. Data mining for business intelligence must be understood to be appreciated. Even then, a very good example of how important this field really is, must be found, and put into its proper context, before Data Mining for Business intelligence can be appreciated. By applying these lessons to any of today’s large electronics, or consumer products companies with Billion-dollar budgets, the theory of data mining and its implications becomes palpable.
Companies which fail to properly extract, and extrapolate the large volumes of in-house data about their customers, products, markets, and market trends, may find themselves in a real pickle from which they may not emerge. Data mining for Business Intelligence dictates not just that a company be profitable, but that company must understand why it is profitable, who is buying its products, and whether they will continue to do so in the near to medium-term future. Samsung of South Korea is emerging as a heavy-weight in the tablet computers market precisely because it understands its market, which is hinges partly on the success of Google's Android Mobile operating system and the penetration of Internet service into far-flung markets, and small-screen devices.
If you are a small marketer who sells products as an affiliate of Amazon.com, for example, you will notice how smartly that company uses data mining to share business intelligence about the tastes and trends of its customers. As a customer of Amazon I often receive emails from them, relating to past purchases I have made; but better still, I can compare related products purchased by other people who made similar purchases from Amazon in the past. The information is real, useful, and timely.
The ultimate success from using data mining for business intelligence is often on display here at Amazon.com, because Amazon has gone one step further by using their mountains of data for market intelligence, not just business intelligence. For them to retain their position as the largest bookstore in the world they have little choice but to use the data they already possess to their advantage, and that of their no-overhead-cost, affiliate marketers. This is truly exciting to watch, whether you are a student or an entrepreneur. Now, it is time to decide how you can benefit from data mining for your business intelligence even if you simply blog or sell affiliate products for a living.