Data mining is a rather outdated, standalone business analytics process. In this process, data from large databases is read and analyzed to formulate reports. These reports contain information useful to the people reading them. Common users include the owners and managers of businesses of all shapes and sizes. Data mining used to be the only way to analyze big data. On its own, it was prone to many issues. Today, BI has taken over the business world. Many companies still use standalone data mining processes. Here’s why you shouldn’t, and why you don’t even need to anymore.
Data Mining Leads to Privacy Concerns
Your customers are quite worried about their privacy online. All their information is stored on your databases. It is only natural for them to be concerned about how it is used. Many news articles have popped up recently about hacks and leaks. You need to remember that your databases aren’t 100% secure. Data mining doesn’t add any security to your company when used on its own. However, BI platforms are extremely secure. Today, cloud-based BI solutions add layers of protection to the companies they are implemented in. This security allows customers to have more peace of mind. Your data is also at a lower risk of being exposed or leaked. While data mining on its own is a scary thing when it is used in conjunction with a BI platform you are safer.
It Doesn’t Present Data Nicely
One of the many ways in which you analyze the progress of your company is through reports. You use reports generated by your system to gain an idea of what your firm is up to and where it is headed. Of course, you need to be able to use these reports to their maximum potential. It is hard to do so when you have to constantly read badly presented reports. With data mining, simple reports are generated and strategic decisions are recommended in them. BI is different because it makes use of real-time dashboards. These work with Business Performance KPIs within your company to generate reports that are far more informative. Only relevant metrics are used in BI reports. These are usually presented visually, using graphs, charts, projections, and presentations. When data is easier to read, decisions are easier to make.
Data Mining Can be Inaccurate and Inefficient
When used alone, data mining can be very imprecise. This is mainly because managers want their information as soon as possible. In large-scale operations like international import/export, the amount of data in the system is vast. Sifting through all this raw data is the job of a data mining tool. This can take time and if a human is working the tool, can lead to mistakes being made. BI, on the other hand, is a far more efficient way to read data. This is mainly due to the integration of highly analytical, big data tools and cloud storage. With everything stored in the cloud, it is far easier for a BI tool to find the necessary data and present it.
So, why don’t you need data mining on its own anymore? The answer is simple enough. BI platforms and software around the world now include data mining. This means you get the tool when using a standard business intelligence solution in your company. Data mining isn’t redundant, but data mining alone is very much so. Take the steps to start incorporating a BI solution into your company’s processes today. It may seem like a large investment, but it is a very logical one. You get rid of privacy concerns and bad data presentation, all while gaining a whole suite of tools for your business to use.