A Brief insight into Data Mining and Predictive Analytics
Data has become the backbone of an organization. Data analysis is at the helm of a company’s business, to understand their customer base and use an effective marketing strategy to outclass their opponents. In recent years, technological advances have provided companies with better insights into an appropriate data analysis method. Data mining and predictive analysis are the two of many methods of data analysis that the businesses are using in recent times.
Given below is the description of data mining and predictive analysis:
Data mining is the process of extracting information by discovering patterns in large data sets. The obtained information is then transformed into a comprehensive structure for further use. The process of data mining consists of three stages, namely:
1. Exploration: the first stage starts with data collection and then preparing the data for further processes like data cleaning, data transformation, and many other procedures. The exploration stage can take place anywhere from simple predictors for regression suite to elaborate analysis using graphs and statistics.
2. Pattern Identification: The second stage is all about choosing the appropriate model among many available models. There are many techniques such as Bagging, Boosting, stacking. These techniques are applied to the same data set, and after comparing the results, the best technique is chosen.
3. Deployment: The deployment stage uses the selected model and applies that to generate a prediction of the expected outcome.
Predictive analytics is a technique that uses many statistical methods like data mining, predictive modeling, and machine learning to analyze current and past data to make an informed decision about any future event. Predictive analytics uses data, mathematical algorithms, and many machine learning techniques to provide insights into any unexpected future outcomes. Predictive analytics can give an organization a competitive edge over its rivals as it studies the data of any customer separately and can help the company to target the customer group that might be interested in a particular product or services.