Business Intelligence Is A Vital Part Of Keeping An Organization Competitive

885 Words Mar 31st, 2016 4 Pages
Business intelligence is a vital part of keeping an organization competitive. Data mining processes are essential to developing business intelligence. According to a study by IBM, 2.5 quintillion bytes of data are created every day. This total includes everything from photos and social media posts to word processing files, financial records and Snap chats. The objective of data mining is to use the enormous amount of information being produced to understand trends, accumulate additional new information, and develop better processes and services based on research, behavior, and preferences

Data mining is defined as the examining of large databases of information in order to generate new information. Nearly every transaction or interaction leaves a data signature that is captured and stored. Data mining is a means of automating the process of analyzing the patterns of data according to different categories. The information is then sorted, collected and assembled into data warehouses for more efficient analysis by algorithms and used to facilitate business decisions. Sophisticated mathematical algorithms are used to segment the data and evaluate the probability of future events.

The major steps involved in a data mining process are to first extract, transform and load the data into a data warehouse, then store and manage the data in databases; the data will then be given to analysts to be processed using application software and finally the analyzed data will be presented…
Open Document