Data mining drills the static data deeper and examines the historic business activities. Ad hoc reporting spotlights analysis of both. Thereby, the pattern and trends are tracked. Mining software spotlights the algorithms thereafter. This way, unknown business strategies are identified. And hence, rosier picture of business intelligence is developed.
Consider these examples. The mined data assists in discovering ecommerce trends, avoiding customers’ attrition and introducing loyal customers. The outcome of tracking patterns reveals complexities in manufacturing and profile the audience accurately.
Likewise, the intensive study of browsed data can help in understanding health of the business. Comprehending financial status of any commercial entity easily indicates whether it’ll be profitable or not. Take the roundup of any company’s financial activities through these data mining strategies:
- Inventory Check: Inventory stands for stock. It mirrors the exact picture of the product based company. Thoroughly check the entire stock. It can be obsolete. The investor must incur expenses in storing it. Investing in such business means stranding in financial crisis. The stockpiled inventory does not show rosier picture always. Rather, it unfolds the grief of unsatisfied customers. Perhaps, their order is in lag. And if it is service based, examine invoices.They present the crystal clear picture of the company’s health.
- Dive into the brief of receivables: Before inking the deal, one must opt for data mining services. Receivables are accountable for business growth. So, check the receipts of account receivable turnover, credit policies and history of loan and cash. Ad hoc analysis of data mining sheds light on this aspect. And hence, company’s former income can be anticipated.
- Net income: Examine the ratio of gross profit to net sales. It determines the company’s net income. But data study terminates when the ratio of net income to net worth is comprehended. During this examination, prospective interest appreciation, total purchase price and other similar factors are also attended. The entire study concluded productive or non-productive picture via ROI.
- Working capital: The deduction of current liabilities from current assets gives out working capital. Capital fuels a business to run. Extract the idea of how working capital is being utilized. If the current liabilities exceed current assets, the business can encounter bankruptcy. Therefore, this working capital gives ideas of how the company’s efficacies are performing and how much it gains in short interval. Operational efficiency can be achieved with the forecast that mined data provides. The way of achieving goals can be identified this way.
- Learn about Sales: Sales represent the profit-earning capacity. It generates revenues. And the frequent appreciation in it is converted into profit. Go for intricate study of the sales. Identify the reason of enhancing sales. It can be either explosive sale or higher price. And finally, don’t forget examining the market as well. Mature market results in static sale. So, always keep this fact fore in the memory. Keenly observe the price of substitute as well as complementary goods. Rise in their price can prove helpful in projecting million dollars marketing strategies.