Data Mining and Its Value Process for Business Management

In the midst of a digital transformation that leaves traces in its wake, data management could not be left behind, it can be daring to affirm it, but information is the cornerstone that defines not only new strategies, but also promotes the development of innovations in technology that marks a growing trend in categorizing, debugging, transferring and storing processed information with the aim of guiding decision-making aimed at business growth, knowing more about the end customer and even doing the unthinkable until a few years ago … predicting what will happen to our consumer trends, foundations of business productivity.

The panorama is broad so that we will limit the management of the information from its mining, that is from its extraction process known as Data Mining or data mining.
What is Data Mining?

It is a process framed by the Fourth Industrial Revolution, in which technology and applied techniques are used to efficiently explore a large volume of data.

Artificial Intelligence has been applied in its exploration because based on it, it seeks to predict the behavior of the market through the results thrown by the data that comes from customers or consumers.

The mission of Data Mining is to structure information, under a previous extraction of raw data that is transformed into a qualified data, based on statistical processes and AI that yield interesting metrics for the prediction of market models and taking business decisions.

Let’s see 4 the processes that involve the operation of Data Mining, which allow to consolidate decision making.

  • Determination of Objectives: Focuses on the main objectives by which data extraction focuses on specific areas: Marketing, Research and Development, Financial and Production.
  • Data Processing: Application of technologies and mathematical tools such as, Artificial Intelligence and statistics.
  • Establishment of Model: Are the behavior patterns that manage to model or predict the behavior of the data.
  • Analysis of Results: Through the process of data and information purification, detail the possible strategies and actions to be taken based on the results obtained.

What is the value management that adds to the organizations the application of Data Mining?

The irruption of the large volumes of information coming from the growing management in the Cloud and its derived interactions with the corporate environment, have led organizations of all sizes to seek to overcome the barriers of data management, so that channel the opportunities to open digital scenarios where information is of quality, reliable and easily accessible.

At this point we stop to estimate the management values ​​that Data Mining brings to corporate management.

Support for the definition of corporate objectives, which will seek to be achieved with the support of the efficient management of business data.
KDD (Knowledge Discovery in Database), this process allows the identification of useful patterns in the data that after becoming information, promotes knowledge and allows to plant the bases of the forecast in the behavior of the data and typing in the behavior of the market.
Increase knowledge and understanding of information, facilitating access and reading for each of the users
It makes it possible to share information in systems such as ERPs and CRM across the entire organization.
It stipulates security protocols for the storage of information, as well as its access in a secure manner as well as the modifications to the data that are required.
Reduces redundancy of data and information by more than 90%, developing the concept of the Unique Data.

The value management that integrates Data Mining supposes a management protocol for its guarantee of success in the extraction of data and its conversion into information.

A standard protocol assumes:

  • Understanding of the business core of the organizations that apply this technical process.
  • Determination of the way of obtaining and filtering the data.
  • Establishment of the mathematical models (algorithms that will typify the information besides the model) and statistics like correlation of variables, Chi square and linear regression. [1]
  • Validation of the models obtained based on verification of compliance with the proposed objectives on forecasting and market behavior.
  • Integration of the data, this by the results of validation favorable to the projects and corporate objectives.

The innovation of technology that is aligned to the corporate development in areas such as Artificial Intelligence, Big Data and storage solutions such as Cloud, Fog and Blockchain are allied so that the extraction of raw data provides companies with total forcefulness of truthful information and capable of creating new business environments such as those observed in the B2C environment; whose electronic commerce platform is more fluid and allows predicting buying behavior in the market for mass market organizations, not so much as in B2B, but it makes possible a typification of transactions focused on strengthening commercial relationships between partners and business partners.

We leave you with a phrase that frames data mining and tells us about the strength of information in the era of Digital Transformation and the Fourth Industrial Revolution

“Authentic genius is the ability to evaluate uncertain, random and contradictory information.”

Winston Churchill

Business Intelligence: Key Information in Decision Making

Information is a common thread for organizations that seek to understand the evolution of ICT in order to improve their productive operations. This article focuses on Business Intelligence, we will delve into how its application becomes the cornerstone of business strategies in organizations to determine the direction to follow and make sound decisions.

While the terms we use to refer to advances in business technology, become a common language to determine operations and processes, do we have clear what is Business Intelligence? We are going to define it in the following way:

It is a business strategy that starts from the conjugation of information, actions, processes and technological tools, aimed at knowing, understanding and predicting the behavior of each of the market players; so that organizations can develop in advance tactics aimed at making decisions about the optimization of resources, continuous process improvement and continuous monitoring to meet their business objectives.

Large technology manufacturers such as Oracle, give us another definition of BI that takes the use of data as the axis of business intelligence: “The term business intelligence refers to the use of data in a company to facilitate decision making. It covers the understanding of the current functioning of the company, as well as the anticipation of future events, with the aim of offering knowledge to support business decisions. ”

Starting from the concept that Business Intelligence introduces in the growth dynamics of organizations, let’s see its components:

  1. Data Warehouse (DW): It is the electronic data warehouse for organizations. Its reason in the operation of the BI is to store the information that is compiled based on the operation of the business core. Its mission is to ensure a safe, reliable and easy to consult storage through the Essential Data Management.
  2. On-Line Analytical Processing (OLAP): It is a multidimensional analysis technique, whose mission is to accelerate the query of large volumes of data. Their cubes of information are the basis of consultation for the transversal processes of the organizations represented in the areas of marketing, logistics and finance as the most representative. One of the missions that the OLAP has is to allow quick queries based on the access to the information warehouses of the structured data, constituting a bridge between the warehouse (DW) and the manager (Data Management).
  3. Data Mining (DM): It combines technology and information under a single process that allows to explore large volumes of data, thus generating patterns on the behavior of the data under the context of the business core of the organizations.
  4. Data Mining has two natures, a Direct one that seeks to classify and order the data, together with the evaluation of its relevance.

The indirect part of Data Mining is focused on the volumes of information that try to parameterize the data and how to establish routes to describe and visualize them efficiently.

Extract, Transform, Load (ETL): It is a neural process in the management of the BI, in which the methods of: Extraction, Transformation and Loading of the data act as a whole. The ETL connects with different sources of business data management such as ERP’s, CRM, Excel files or any other record that can be loaded.

ETL’s mission is to combine the data that comes from different warehouses, thus supporting the migration of data to the cloud and even to Blockchain structures; also improve the productivity with respect to optimizing time focused on the cleaning and review of data.

It is important to mention that companies to look for a Business Intelligence strategy, must question their needs and objectives, under the parameter of conscious decision making and consistent with the pace of market growth. The questions that all organizations, regardless of their size, should be the following, so that the panorama that leads to the application of BI strategies can be clarified.

  • What is the current situation of the company?
  • How are decisions made in the organization and what results are they giving?
  • Are the decisions that the organization is taking effective?
  • What are the best practices to make the organization more competitive?

Four principles of Business Intelligence for business decision making and market forecasts

The Business Intelligence strategy is one of the alternatives in data and business intelligence that organizations increasingly demand; however, its application supposes principles or processes that must be adopted gradually to achieve satisfactory results in its implementation. Let’s see which are the principles that determine the path of success of the BI.

Execution Plan: It is the starting point from which the organizations trace the objectives they want to achieve, therefore, they plan based on their technological tools and the commercial information generated by their activity, what they want to do, where they want to direct their organization and how they should do it.
Scheme of action: It is the route to follow of the execution plan, here we analyze the human and technological tools that will participate in a data management process to focus on the growth and productivity strategies dictated by the management areas of the organizations.
Perspective and forecast: Once the data for information management have been parameterized, the statistics that determine trends in behavior in the market are established. The technological tools that allow this management to be carried out efficiently range from CRMs, ERPs, to the application of innovations in Artificial Intelligence, Blockchain and Big Data.
Detection of deviations in organizational objectives: With the analysis of data that comes from the application of Data Maining and ETL, it is possible to detect how the level of optimization of resources that the organization has (liquidity, human talent and time). , establish a forecast of market behavior to anticipate decision-making that aims to make the organization more competitive in the context of the market in which it operates, review its financial development and establish strategies to strengthen relations with its target audiences.

Big Data and Blockchain, strategic partners of Business Intelligence

Recapitulating the strategic nature of Business Intelligence, we could not miss a high impact issue due to the integration of such powerful partners in information management as Big Data and Blockchain to the principles of BI application.

This ecosystem of processes in data is very attractive, since it allows a symbiosis in which each platform adds its capacity for storage, consultation and efficiency in the management of information of unstructured and structured data. The tour is extensive, but we will discuss the main points in which organizations benefit from an integration of this magnitude.

Speed ​​and reliability in the transfer of data from one environment to another.
Greater transparency is generated in the traceability of the data, on account of the blocks and storage.
It allows the use of new technologies such as those derived from Artificial Intelligence, so that navigation and classification of data records is easier.
It is possible to prevent fraud and attacks on the data of the organizations by the joint sum of the securities of the data blocks, the firewalls that protect the cloud environment in which the Big Data operates and the computer management strategy for the actions of the BI.
It is possible to reduce the duplication of data and errors related to its storage which results in a wrong decision making and inaccuracies for business competitiveness in the market.
Strengthens the growth efforts for organizations, especially in cross-cutting areas such as Marketing, Administration and Finance, Technology, Quality and Processes, Research and Development, among the most outstanding.

The technological path that we cover is more intense as markets become more demanding regarding the competitiveness that they demand from organizations, this is how the strategies promoted by Business Intelligence are the key pieces of the game, since not only do they have The resources also combine them in the search for accurate partnerships for the soundness of business operations, ranging from the eco platform systems to the decision making that determine new beginnings in the business horizon.

Steps Needed To Open Your Own Business

Opening your own business can be an opportunity for you to make money. If you are interested in opening your own business, your salary will provide tips on steps to be taken before opening your own business.

Today, there are many people who are increasingly difficult to get jobs, especially for people who do not have special skills. Opening your own business can be an opportunity for you to make money.

It is undeniable, the business itself sounds very exciting, being a boss for yourself, working time can be more flexible, and the benefits obtained if the business is successful is quite large. However, the risks faced are far greater than being employees of a company.

If you are interested in opening your own business, your salary will provide tips on steps to be taken before opening your own business.

a. Analyze the type of business involved

You have to make sure that the business you set up is the type of business you are interested in. It will be better if supported by your expertise and experience in this type of business. Perform a Break Event Point analysis to determine the potential that exists in your type of business. After that, describe your business plan in detail (Sales forecast, cash flow analysis, etc). Then arrange the marketing plan that you will do to market your business.

b. Plan your business by drafting the appropriate concept

If you are looking for external funding, a business plan / business plan proposal is a necessity. If you are going to finance the business itself, the business plan will also help you know how much money you will need to get started, what you need to do when, and where you go.

c. Prepare Capital

Capital is an important factor in starting your own business. Many people want to start a business, but don’t have the capital so they don’t work. Capital can be generated from: own capital from the results of saving, seeking capital from investors, or borrowing money from the bank, and the partnership system. In addition to initial capital, you must also have a minimum of three months from your family budget in the bank

You can also start a business without capital by becoming a reseller (retailer) of a product or item

d. Make your business a legal and recognized business

  • Determine the legal structure for your business
  • Choose a name that is good for your business
  • Register your business name with DG IPR as an official and legal trademark in the eyes of the law
  • Prepare organizational documents
  • Look at business licensing documents, such as company deed of establishment, company name, rights in the name of the company, recognition and endorsement

e. Expand Your Networking

Networking can be the basis for your business continuity. You can join communities that are related to your type of business. You can do this before you start your own business, so that when you start marketing the products / services you offer, you already have extensive networking.

Hopefully these tips from your salary can enlighten those of you who want to start your own business. Good luck!

7 Steps to Success in Starting a Clothing Business for Beginners

Feeling bored working for someone else? Why not start your own clothing business?

It is true that starting a business can be intimidating, but never give up if you dream of becoming a businessman.

Let’s look at 7 steps to success in starting a clothing business for beginners.

There Is No Best Industry in Business

Have you ever felt bored with work? Get up early, go to work, overtime, go home at night, sleep, and so on every day.

Not to mention if you don’t like your job. Maybe because your boss is fierce, work doesn’t work for your passion, or because you’re tired of being an employee.

When you feel an inconvenience at work, of course dreams arise to start your own business. Imagine if you can be your own boss and can make your own decisions.

If you feel that way, then you can just start your own business as long as you have strong determination and careful planning. Why not?

But when it comes to starting a business, many people ask, “What is actually the most profitable industry? Is it food, insurance, or property? “The answer is: ANY INDUSTRY can be a lucrative field, provided you do it seriously.

One of them is the clothing business. Curious about how to start a clothing business for beginners?

Here are 7 successful steps to starting my Financial version of the clothing business.

#1 High Commitment

If you are asked the question, “Do you WANT to be a successful businessman?” Most likely everyone will answer YES.

But if you are asked again, “Have you been 100% COMMITTED to become a successful businessman?” Then the answers of some people can change.

The point is, there is a difference between MAU being successful and COMMITTED being successful. If you only want it without doing anything, then you cannot be successful.

This is the reason why only a handful of people have succeeded in achieving their goal of being successful, even though almost everyone wants to be successful.

Similarly, in the business of clothing, you must be committed both in capital and time to start the business.

Sportsbikeshop founder James Mitchell revealed:

“There is no way to escape hard work – there will be touch of luck, but being creative, hard working and thinking out of the box is what sets the theory of your business.”

In other words, you must always be creative, work hard, and think uniquely to distinguish yourself from other competitors. There is no other way than to work hard to get success

In conclusion, don’t make success “if” but make it “must”. Surely you can also achieve that success.

#2 Plan your business with maturity

Someone who is SUCCESS is those who have a mature and detailed business plan.

The business plan does not have to be long and long-winded, but it is quite short and compact. The important points that must be included in the business plan are:

General description of the company (for example: the name of the company, the industry it engages in, the company’s goals, etc.)
Product summary (for example: clothing products that can provide comfort without forgetting the latest beauty and clothing trends).
Operational summary (for example: production processes, raw materials, and operational processes)
Executive summary (includes keys from the business model created).

Make your own business plan and prove its effectiveness now!

If successful, don’t forget to share this article with your friends who also have difficulties in doing business. Thus, you have helped your friends to become more successful business people.

#3 Organizing Companies

Basically, all components in a company are entities that must be integrated. In addition, it is important to take care of company legality if you want smooth, unhindered success.

By managing the corporate tax structure and proposing a legal business entity, the company can run by fulfilling all its obligations and will obtain its rights in accordance with applicable law.

#4 Preparing the Production Process

Knowing how the production process will be carried out is an important decision. You can choose to produce your own, or also use outsourcing.

Whatever method is chosen, one thing needs to be ascertained, namely checking quality (quality control). The quality of this product will determine your business, whether you will get good or bad reputation.

It is true that ensuring product quality will cost a lot, because this is one of the biggest costs in the business besides the initial capital.

But this is also what will determine the development of your business going forward. Thus, make sure the right production process with good product quality.

#5 Determining Prices

After having a clear product and production process, you can now determine the price.

This price will affect the amount of profit that you can get. Own profit is derived from the difference between the selling price and fixed costs and variable costs.

Note:

Fixed costs are costs that must be invested in a business and are fixed or will not change. For example: facility costs and the cost of purchasing machinery
Variable costs are costs that can vary in number for each period depending on certain factors. For example: raw material costs change when the amount of production changes

To ensure that you make a profit in the clothing business, make sure the set price is greater than the capital. Try to set a target profit margin of 30% to 50%.

#6 Creating a Good Marketing Strategy

No matter how good a product is, it cannot be successful if it is not equipped with a good marketing system. Consider the following points when you make a marketing strategy:

  • Build a brand

Generally clothing products are determined by the company’s logo and brand name, thus making a logo and brand name that is appropriate and in accordance with clothing.

Don’t forget to always show the logo and brand name in the marketing process to instill a brand with consumers.

  • Identify target markets

This is the main step in marketing, where you need to determine the target market that is suitable for the product being marketed. For example, if you make women’s clothes, then you need to target female students and female workers.

Determining an inappropriate target market can frustrate your business in an instant.

  • Take advantage of online facilities

Today, more and more online marketing tools (e-commerce), for example through advertising and social media.

And in increasingly fierce competition, you can lose if you do not bring marketing in the online means.

#7 Always Thirst for Repair

When becoming a businessman, one of the things that distinguishes successful business people and failed business people is “improvement”.

Improvement here means the continuous improvement, where you should not just be satisfied and continue to sell the same product without any improvement in a better direction.

A successful businessman is never satisfied and is always looking for ways to develop his business and products to be even better. In this way, you can win the competition because you never stop satisfying customers.

For example, look for a gap that is not good in the marketing strategy then look for a better strategy. Get to know the production floor and repair the bottleneck work station (inhibiting the production process to be slower), then repairing the work station arrangement or adding workers.

There are so many ways to make improvements and so you are always a step better than others.

Have Your Own Business!

Now, have you imagined how to start your own clothing business? Then are you ready to start? Now you have the provision for success.

You don’t need to hesitate anymore and can start your own successful business. If you are successful, don’t forget to give comments in the comments column and share this article with friends who are also considering opening their own business.

You can share this article via WhatsApp and other social media.

Do you have questions about the pace of success in starting a clothing business for beginners? Leave your comment below.

If you have questions, please submit your question in the column below. Our Financial Planner is ready to help you, thank you.