What is Data Mining Consulting?

Data Mining is relatively a new trend in the database industry that uses several specialized techniques for the discovery of meaning in new data. The accumulated information are then used for market analysis and other business-related purposes. Businesses get a lot of advantages through data mining and this is due to the discovery of new knowledge that reflects the real world process. So, if you’re planning to start your data mining consulting business, you should be familiar with the application areas that you can provide your services such as:

  • Retail Industry
  • E-commerce
  • Games & Entertainment
  • Healthcare
  • Network and Telecommunications
  • Public Utilities
  • Financial Data Mining
  • Government
  • Social Services
  • Oil and Gas Industry
  • Manufacturing
  • Meteorological and Industrial Industry

A major part of starting a successful data mining business lies in finding businesses and industries that lack the internal resources to do their own data tracking. Many small businesses fail to implement data mining techniques, which can leave them vulnerable to changes in customer taste, market economics or technological innovation. Data mining businesses are especially well-equipped to find and exploit under-served business niches, as they have techniques to examine data and spot trends in industries where they can leverage their knowledge for increased growth and profitability.

Understand your client: Data mining can primarily be said to be a basket of techniques. But your clients think in terms of requirements, applications, and outcomes. The missing link is the translation between business and the data mining/science. Having this in mind, you need to articulate the value of data mining to a client in terms of how it can be applied to solve a client problem and deliver a tangible benefit.

Understand your techniques: A strong grasp on data analysis tools and techniques will also determine the path that the startup data mining business will follow. The tools a data mining startup uses to analyze trends in financial data can be vastly different than those used by retail store operators to track customer purchasing patterns, so selecting from different data mining techniques often will determine the types of customers the startup will pursue. For instance, the company can develop its own custom-made software for its clients, or use a third-party solution, such as SAS.

Data Privacy and Security: While the principles of data analysis focus on examining aggregate data, a data mining company also should take steps to protect users’ personal data. The process of creating a startup data mining business should include the study of data protection and security methods. A major concern for data mining companies in recent years has been the laws surrounding data privacy. As the laws attempt to catch up to the technology, many users are worried about how their personal data will be used. Addressing those customer fears is key to winning business.

Controlled Tests: Data mining startups can use in-house “alpha” and external “beta” users to test the reliability of their programs and to measure the capabilities of their systems. The company can conduct the tests during its startup period to find issues with their systems in a controlled environment. These tests will ensure that the startup has built a solid data mining methodology before making its initial presentations to potential customers.

Incorporate and start promoting your business: Incorporate and properly set up your business administration details. Focus on selling and promoting your services. You need to formalize a sales cycle: a process for finding prospects, cultivating your relationship with them, educating them about your services, offering your services to the right ones, fulfilling their expectations, and developing that relationship with them.

Take advantage of the online freelance marketplace

Establishing a robust online presence is also a consideration to strengthen your marketing position – a website, social media presence, etc. Furthermore, use websites that advertise thousands of real freelance jobs every day. You can create an account for free, and start applying to jobs within minutes. Go to sites like www.upworks.com, www.peopleperhour.com, etc to get started.

Always keep an open mind – quick to learn trends and new imaginations in your line of business. Persistence and the determination to succeed are the most important skills you bring to the table.

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