It’s my pleasure to welcome Vincent Schickel for a guest post on Data Mining Research. Vincent is CEO of his own company, Prediggo, providing recommendations to websites. Today, Vincent writes about knowing the value of your data.
Know the value of your data
Data is all around us, and we are getting overwhelmed with it. Thanks to the internet, we have created in the past 15 years as much information as we did in over 100 years. The question is what to do with all this data? What value does it have?
Usually raw data at its source has little interest and contains too much noise to be useful. A couple of months ago, it was announced at CERN that there is over 99.9% probability that we have finally proven the existence of the Higgs particle. This discovery is set to be as big as the discovery of the Newton theory, but it did not come cheap. The construction of the new particle colider cost billions of Swiss francs, and produces Terra Byte of data each day. Data mining was crucial in analyzing this huge amount of data and isolate useful information for scientists to work with.
Data can also be worth more money than most people think. Take for example Amazon, the pioneer and leader in the eCommerce Industry. Amazon makes billions of dollars, but did you know that a few years ago, over 30% of its revenue came from its famous recommender system “Customers Also Bought”, or CAB. CAB is an unsupervised learning algorithm known to scientists as Item Collaborative Filtering. CAB works by analyzing the content of user’s shopping basket and compute the similarity between items. Then when a user looks at a specific product, CAB will predict what a user may like by proposing similar items. CAB can be seen as a personal shopping assistant.
Data has huge value but unfortunately it rarely comes as fruits hanging from a tree. This is where Data mining comes in and helps us transform this data into gold.
To know more about Vincent and his company, visit Prediggo