Data mining and neural networks
As businesses continue to deal with large volumes of data, the need for an automated process to understand and handle such volumes has become essential – neural networks is the answer. Neural networks have the ability to identify and assimilate correlations and relationships between numerous variables. This has made them an effective tool for businesses that wish to understand and mine big data efficiently.
How neural networks work
Neural networks assimilate data based on how the human brain understands and processes information. The brain of a human being has millions of neurons that read and process information in form of electric signals. When the brain receives external information (stimuli), it processes it and produces an output.
In the same way, neural networks get their input through an immense number of processors. These processers are arranged in tiers and operate in parallel. Raw data is input in the first tier, and the tier processes it through interconnected nodes. These nodes have their own set of rules and knowledge. After the first tier, the information is then passed on to the next tier by the processer as output. Every successive tier and nodes receive information as output from the preceding tier and processes it further instead of having to process data afresh every time. Still having trouble understanding how the neural networks works? Get in touch with our data mining and neural networks online tutors.
Application of neural networks in businesses
Most businesses understand just how valuable and important their data is in decision making. Hence, as technology advances, companies are applying neural networks on predictive analysis to fully reap the benefits of data streams. Neural networks can learn and create complex non-linear relationships and can manage the relationship between inputs and outputs easily. They do not create any restrictions on the input data variables, as it is the case with other prediction techniques. Here is how neural networks are used in business and companies to great effect:
- Forecasting: Most businesses forecast data in order to manage their stock, workforce, sales, etc. effectively. Traditional forecasting models may not be the most efficient tools in solving forecasting problems because of the complexity of these problems. Neural networks have the ability to define relationships and extract unseen features, and applied correctly, they can forecast effectively without limitations on data.
- Image and character recognition: Neural networks can take in an abundance of inputs and analyze them in hidden, complex, nonlinear relationships. Due to this capability, neural networks are excellent for image and character recognition. The following is all possible through neural network:
- Facial recognition on websites like social media platforms
- Satellite image processing for military and agricultural use
- Cancer detection for the health care industry
- Handwriting recognition for national security assessments
- Data mining: Neural networks have become popular in data mining these days and businesses have been utilizing them to convert raw data into meaningful information. With neural networks, businesses can identify patterns in large batches of data allowing them to learn more about their productivity, revenue generation, and customers. As a result, they are able to direct their efforts to strategies that increase their productivity, bring in more customers, and generate more revenue.
How neural networks work in data mining
Data mining is the process of studying and analyzing hidden data patterns against a given criteria in order to classify it into meaningful information. The mined data can then be used to improve sales, make marketing decisions, or minimize costs. But finding hidden patterns is not an easy undertaking and that’s why many business apply neural networks for the process. Since neural networks have the ability to handle complex relationships, machine learning, and cross-pollination of data, businesses are able to harvest information from large sets of data and make more sound decisions.
Neural networks have become a more useful and trusted tool for finding hidden information in unstructured data. They have fixed common data mining problems such as:
- Pattern recognition
- Structured prediction
- Dimension reduction
- Anomaly detection and
- Machine translation
This has made it easier for decision makers to make better forecasts and more confident steps towards achieving the set business goals. It has also made it possible for businesses to relate well with their customers and sell products that bring in more sales.
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