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Write a short note on Data Mining?

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Introduction
Data mining can be defined as a tool, helping automatically in the discovery of the various patterns and the relationships in a data warehouse. With the help of the data mining, managers are able to find the various relations between the elements of the business and the find out concepts of the business. Hence, it can be said that data mining extracts trends and rules from data warehouse helping in the evaluation of the business strategies ultimately leading to the improvement in the various business operations.

Data mining very commonly is known as the knowledge discovery database and the various important results that it helps in achieving can be summed up as follows –
a. Discovery of the new associations.
b. Deviation detection.
c. Event clustering.
d. Pattern recognization.

Working of Data Mining
Data mining involves the following steps –
a. Situation realization and then understanding it.
b. Development of the various models.
c. Analysation.
d. Taking action.
e. Results measurement.
f. Iterations.

Data Mining is very empirical in nature and should provide real value to the organization by not only helping in the analysation of the operation but by also helping to learn from the activity. By this, one is helped at a very wide level during the decision making processes.

Applications of data mining
a. Helps in knowing the trends.
b. Analysation of the vendor.
c. Customer segmentation.
d. Understanding and identifying the prospects.
e. Identifying the customers.
f. Identifying the demand being made.
g. Customer clustering.
h. Segmentation based on the type of area.
i. Exchange schemes.
j. Financial statement analysis.

This article has been written by KJ Singh a MBA Graduate from a prestigious Business School In India
Article Published:August 4, 2010
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