Data Mining Essay

1495 Words 6 Pages
Abstract

Every interaction your company has with a customer or supplier likely generates a data trail and this data provides a wealth of information for marketers. Extracting that information and getting it into usable shape requires sophisticated data mining tools. One example of this technology is the used by police departments to identify patterns in crime. We will define, explain and discuss main aspects of data mining. Also its benefits and negative issues.

What is Data?
Data is defined as facts, concepts, information, or instructions in a formalized manner suitable for communication, interpretation, or processing by humans or by automatic means. Like mentioned before this processing is usually assumed to be automated and
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Therefore, a manufacturer or retailer could determine which items are most susceptible to promotional efforts.
Data Mining
What is Data Mining?
Data mining is the process of analyzing data from different perspectives and summarizing it into useful information, this information that can be used to increase revenue, cuts costs, or both. Data mining software is one of a number of analytical tools for analyzing data. It allows users to analyze data from many different dimensions or angles, categorize it, and summarize the relationships identified. Technically, data mining is the process of finding correlations or patterns among dozens of fields in large relational databases. (Sometimes called data or knowledge discovery)

How does data mining work?
Data mining is a subset of business intelligence, which covers a broad range of analytics technologies. Often used for predictive modeling, data mining tools can also help organizations better understand relationships among variables. One core software tool is online analytical processing (OLAP), which extracts, structures and stores warehoused data to enable quick, multidimensional analysis. A dimension can be any variable your company tracks: customer locations, sales volumes, product development costs and so on. An OLAP data set is made up of dimensions and measures, which can then be used for queries to elicit detailed data breakdowns and…