Business Impact Of Text Mining

Published Date: 02 Nov 2017

Firstly, text mining helps to reduce budget of business activities. For example, in traditional sense, if a company or group want to carry out a wide range of market research, the cost will be very high because of the large area search, collect and summary information needs a lot of manpower and financial cost, but it can greatly reduce the cost of the working time and manpower through text mining, and cuts the business activity budget.

Then, text mining can replace many complex business methods previously and simplify many cumbersome procedures. Text mining software can be used to build large files of specific people and events. For example, based on a large data set from the news reports the extracted data is to establish a social network analysis or counterintelligence. In fact, text mining software may act in a capacity similar to an intelligence analyst or research librarian, although more limited range analysis. England’s recently established National Centre for Text Mining is the first publicly funded text mining clearinghouse in the world, with the stated aim of furthering academic research (Gary Belsky, March 20 2012)

Finally, text mining can be used to investigate the dependence of consumer on brand, which makes it a better judgment for business decisions. Many companies use of research and development on the basis of the principle of text mining software to monitor or survey of consumers to buy on the market orientation as well as the dependencies for a particular brand. Because the text mining can identify specific vocabulary in the frequency and percentage of the database, so once the database is specified, such as a region of consumers or users of some kind of chat software on the Internet. The text mining software can analyze almost all the useful information in the database, to obtain huge potential intelligence. This approach for the analysis of group company and provides a new understanding of the market, help them to better grasp the consumers and the whole market.

4.on the otherwise, it also have the negative impact. Because when the text mining reduce the business activity, it can save lots of human resource. In that situation, maybe the workers at the bottom of the economic pyramid' s benefit will be cut.

The problem that text mining solves is that it shortens the amount of time it takes to accurately find data. Text mining makes looking for some specific information in a large database of work become simple and efficient. Text mining is also enabled the government to establish universal education, more convenient medical database and personal files

Law firms can use text mining, to find the electronic evidence from a large number of electronic files in the favorable evidence to help them win. The lawyer's social status is high and they are respected by most people. so they have a considerable income. (yuan, 2007) Text mining, also can save a lot of manual work, it can save lots cost, because the lawyer's artificial cost is very high. Not only saves time, and be able to find out more effective and comprehensive evidence.

Financial analysts are using it to analyze the content of the corporate profits, forecast movements in stock and prices. Text mining also can help analysts saves the time of computing a large amount of data, so they can be easier to get accurate budget results.

That software developers also use the text mining to investigate software in the currently situation, it can analysis the advantages and disadvantages before improved. And on the basis of original innovation, software developers will be able to develop new software.

How does text mining improve operational efficiency, communication and decision making？

1．operational efficiency

Nowadays, we have to admit that e-discovery software have already infiltrated the lives of everyone around us. A crucial reason for its generalization is high operational efficiency. This special software belongs to text mining software. Some advanced e-discovery software also analyzes the concepts discussed in each document. What’s more, guidance of key terms is not necessary, because software is able to detect and understand deeper patterns to find documents user need. This way is not only convenient and fast. Text mining software could save a lot of time, energy even cost from manual work. In case study, the law firm DLA Piper show in three days, how Clearwell e-discovery software searched and analyzed 1.5 million documents and cost less than $100,000.

2．communication

Text mining software also improves communication in two aspects that is employee and consumer.

Firstly, visualization and model chains of events and discussions, which cover multiple methods of communication, is text mining other characteristic. In the other words, ‘the software can follow the discussion of a certain topic in the workplace across email, instant messages and telephone calls by detecting commonalities among the conversations between employees’. It is good for clear focus during communication. Furthermore, it would build a database of different methods of communication that make it is easier for large staff to share their information and idea.

Moreover, intelligence from consumers is vitally important, and it always includes satisfaction, evaluation, and advice of the company, in according ‘the technology is most frequently used by corporations eager to better understand what its customers are saying about them’. E-discovery software is newer, creative uses of text analytics and get relevant data at extremely fast speeds. We also call this process as sentiment analysis. In case study, typical examples are Best Buy, Viacom, Paramount Pictures, Cisco and Intuit that ‘heavily rely on sentiment analysis to guide their advertising efforts and business strategies’.

3．decision making：

Text mining can help user to make decision since it offer analysis of incomes and costs, at same time, show a predictions of stock. It would be clearer for organizations to compare different strategies and plans in order to best choice. In addition, it is necessary for decision maker to think about a large number of internal and external factors, while text-mining software could substitute manual calculating and retrieval basing on digital data. By this way, subjective and faulty conclusions and decisions are, for the most part, avoidable. There is an example of user in case study, according to ‘Law firms…using it to analyze the content of corporate earnings calls and make stock predictions’.

Text Mining – Manually

If corporations had to text mine without current technology, they only have to text mine by manpower. It also means ‘manual’ techniques. The corporations which will do text mine must have plenty of people. This is because text mine without current technology is a big workload, it need people read all text about the thing which need to text mine. It is helpful to reduce the time of text mine in current society which has a larger amount of data. So it's a long time and consumption of human work. It is helpful to reduce the time of text mine in current society which has a larger amount of data.

‘Manual’ technique also has some merit and drawbacks. The disadvantage of ‘manual’ techniques is that it does not have high efficiency. The reason is that people is not as accurate as machine and they need to have a rest when they spend a long time on text mine. For example, the layer before lawsuit should read vast amount of document relate to law case, but the layer cannot find the useful parts unless he read all the relate materials. Therefore it greatly increased their workload. Another drawback of ‘manual’ techniques is that it will increase the cost of work. The cause is it need a lot of people cooperate to complete. For example, some television studios took part in an antitrust lawsuit about the Justice Department against CBS in 1978. The staffs who work in Justice Department needed to read 6 million data and found some useful information about the case. The total cost of discovery was $2.2 million. This is because most of money spent on payment of wages.

However, ‘manual’ techniques has many advantages. Manual techniques can improve the ability of communication. Information can be found not only from paper but also from asking some professional persons. During this activity, the ability of communication will be promoted. In additional, researchers can get extra information to abundant their knowledge without use automatic technology. For example, if use automated tools to text mine. It only can get a finally result. But sometimes the process is more important. This is because result can not show the difference in process. On the other hand, the result can be shown by the difference in process. Another merit is ‘manual’ techniques can possibly bring people have a good job. Due to current technology, some difficult, challenging and promising occupation was replaced by automated tools. It leads to many people only can do some jobs which at the bottom of production.

In conclusion, ‘Manual’ technique has both advantages and disadvantages.

Drawbacks – Text Mining

With the development of society, people need to face too much information from social media and mobile computing in every day. However, most of the data are unstructured. People discover e-discovery techniques that included two major types that the linguistic approach and the sociological approach. The linguistic approach is the traditional approach to text mining that Software to search keywords or phrases and the sociological approach is much more advanced. Such as cutting edge text mining software companies. Text mining has advanced beyond can help people easy to deal with anything. At the same time, Text mining also has some disadvantages.

This development brings benefits to more quickly deal with daily life information and help people easy to find useful things in the linguistic approach and sociological approach. Firstly, people can deal with daily life information quickly. For example, For example, in 1978 several television studios were involved in an antitrust lawsuit filed by the Justice Department against CBS. In this case, the studios need to carefully read over 6 million documents. It will spend more time and money and after calculation the total cost was $2.2 million. But we had a called 'e-discovery software' that can help people to read this documents. It can save the time and more money. Secondly, people can easy to find useful things. For example, the law firm DLA Piper used Clearwell e-discovery software to search through, analysis and sort 570,000 documents. ( Laudon, 2013) This e-discovery software can help people analysis less than $100,000 worth of documents.

There are on the other hand, dangers of the e-discovery just software that can help people to finish some work. But do not instead of people to finish it. For example, sometimes when the people want search some information though the internet. People need to use search software to help search information. But people may not be to find what people really want. More specifically, some people do not want their privacy leaked and they hope to have their private space. For example, Kia Motors used sentiment analysis to determine the effectiveness of its Super Bowl ad in 2011. This software called WiseWindow that access to information through the website and got a customer report. But some customers do not want to reluctant to donate this information.