What is Data Mining
Data mining software permits the analyzer to scrutinize the data from various angles or phases, arrange it category wise and sum up the results drawn out. Precisely data mining can be considered as a procedure to rationalize the large databases of numerous fields to find patterns or relationship among them.
The development in the field of data mining is still on the track as the field is new and not much technological advancement has been made so far. Companies connected to the development of data mining are scrutinizing, since many years, the reports collected from huge sources of informations from their powerful computers. This continuous process of innovations in statistical software, computer processing power and disk storage had shown several noticeable increases in the correctness of the investigations at a very low cost.
In order to understand the concept of data mining, one should understand the basic factors of data mining such as data, informations and knowledge.
Data can be known as the numbers, texts or facts that a computer can process. The data are collected by the companies in various formats and databases like transactional or operational data which include cost, sales, payroll, accounting and inventory etc.; non-operational database like macro economic data, industry sales, and forecast data; meta data database contains data dictionary definitions or logical database design.
Information can be understood as result derived from the connection or relation or pattern established among these data. The information of when and which product is sold can be derived from the analysis of data of sale transactions from a sale point, for instance.
Knowledge is derived from the informations derived from the analysis of data which may sort out the results like what should be the future planning and what trends should be followed in coming days. This knowledge enables the businessman to follow the least risky steps for the promotion of his business.
Spectacular growth in data collection, power to process them, transmission of data and their storage for Data Mining had introduced the concept of data warehouses which enabled business house to store their enormous data. Companies focused on the customers utility like financial, retail, marketing and organizations related to communication field are using data mining widely. These companies reach to certain conclusions from the analysis of data related to certain internal factors like product position, price and staff and several external factors like competitions, economic conditions and customer’s trends. It enables them to assess their prospective sales, customer’s satisfaction, and profits of the company. In this way data mining allows them to summarize the informations drawn on the basis of detailed data of their transactions.
Thus, data mining can be understood as a process to analysis the data collected from various source to develop a relationship among them to get certain useful informations.