Technology has served as a springboard for many companies to get out of their comfort zone, undergoing a valuable metamorphosis that takes them to a competitive level and in this case, we want to talk about Data Mining and its importance.
Are you ready? Let’s get to the topic😊
What is Data Mining?
According to an article published by IBM, this is a process for finding patterns and valuable information from large data sets. This is made possible by the tremendous growth of big data and storage technologies.
The technology is constantly evolving to handle large-scale data, but leaders still face challenges with scalability and automation.
Did you know that the concept of “Data Mining” is not something from the Digital Age? This concept has been around for over a century, being most famous in the 1930s.
One of the first cases of Data Mining occurred in 1936, when Alan Turing introduced the idea of a universal machine that could perform calculations similar to those of modern computers.
On the other hand, Data Mining has greatly improved the decision making of organizations through the analysis of fully detailed data. In the same vein, we find two main purposes behind detailed analysis:
1.They can describe the target data set.
2.They can predict results through the use of machine learning algorithms.
Both methods are used to filter and organize data, displaying the most relevant information, from fraud detection to user behaviors, security breaches and bottlenecks.
These are the advantages of Data Mining
We can use data mining to solve almost any business problem involving data, including:
- Revenue growth.
- Understand customer segments and preferences.
- Acquire new customers.
- Improve cross-selling and up-selling.
- Customer retention and loyalty.
- Increasing the ROI of marketing campaigns.
- Detecting fraud.
- Identifying credit risks.
- Tracking operational performance.
Data mining is not a new thing, but has been around since the 1930s and the first Turing tests. It is also very important for companies as it offers a lot of benefits from the analysis of a huge avalanche of captured data.
At LISA Insurtech we constantly equip ourselves with cutting-edge technology in order to revolutionize the insurance industry with faster and safer processes. Thanks to Data Mining we are able to detect fraud, segment the preference of the insured, among many other things.
If you want to know how we do it, please visit the following link.