Data Warehousing and Data Mining: Applications and Emerging Trends You Need to Know

Sep 6, 2019

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To thrive in an ever more competitive business world, you not only need to mine data for similar patterns and convert them into actionable insights, but you also need to get better, faster, and smarter at it. At the same time, the scope for finding insights will be even greater. So long as you can figure out how to mine and manipulate data, you’ll be able to learn more about your business than ever before. This also helps you to understand precisely how each piece fits together and how every action and business decision feeds into the mix.

By leveraging data warehousing and data mining techniques and investing in the right data mining applications, businesses can gain a competitive advantage and uncover valuable insights to improve customer experience and business growth. Today data warehousing and data mining techniques have become strategically important to many data-rich firms and play a key role in enterprise decision making. Owing to such factors, it is now considered to be a crucial component of the enterprise decision making, and this increase in demand has prompted business executives to ask themselves the following questions-

  1. Should I invest in data warehousing and data mining software?
  2. Would it be best to hire data mining analysts or consult an external data mining solutions provider?
  3. How can data warehousing and data mining help tackle business challenges?

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Though there are no universal answers to these questions, it’s crucial to note that the answers depend on the business landscape, industry, and project requirements. To respond with confidence, business leaders must familiarize themselves with the fundamental characteristics of data warehousing and data mining tools. They need to understand that a successful data warehousing and data mining project requires them to select an appropriate problem and then deploy the most suitable data mining technology or select a data mining service provider for that problem.

Applications of Data Warehousing and Data Mining 

  • Database Marketing and Targeting
  • Credit Risk Management and Credit Scoring
  • Fraud Detection and Prevention
  • Healthcare Bioinformatics
  • Spam Filtering
  • Sentiment Analysis
  • Qualitative Data Warehousing and Data Mining

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4 Emerging Trends in Data Warehousing and Data Mining

Data warehousing and data mining techniques hold a prominent place in every business agenda and are used widely to make crucial business decisions. It’s growing popularity can be attributed to its ability to drive positive business outcomes. A few years down the line, we expect data warehousing and data mining applications to become as ubiquitous as some of the prevalent technologies used today. Some of the emerging data warehousing and data mining trends are listed below.

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Time Series Data Mining

Time series-based data mining techniques help businesses to mine data to analyze periodic trends. This practice is also helpful in analyzing random events that occur outside the regular series of events. As such, it is used by players across industries, especially the retail sector, where retailers used time-series data mining methodologies to understand customer needs and analyze their buying behavior.

Ubiquitous Data Mining

This method involves the mining of data from mobile devices to get information about individuals. This data mining method offers many opportunities for players across industries, especially in studying human-computer interactions.

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 Distributed Data Mining

This type of data mining is gaining popularity as it involves analyzing the information stored in different company locations or at different organizations. Highly sophisticated algorithms are used to extract data from different locations and provide detailed insights to aid decision making.

Multimedia Data Mining

With the growing popularity of different kinds of multimedia sources such as text, audio, video, and images, businesses are now focusing on leveraging data mining tools to extract valuable insights from disparate sources of data. Multimedia data mining is a data mining technique that extracts data from different sources and converts it into a numerical representation for easy analysis. Apart from data clustering and classification, multimedia data mining also helps perform similarity checks to identify associations between data sets.

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