A large amount of information is collected normally in business, government departments and research & development organizations. They are typically stored in large information warehouses or bases. For data mining tasks suitable data has to be extracted, linked, cleaned and integrated with external sources. In other words, it is the retrieval of useful information from large masses of information, which is also presented in an analyzed form for specific decision-making.
Data mining is the automated analysis of large information sets to find patterns and trends that might otherwise go undiscovered. It is largely used in several applications such as understanding consumer research marketing, product analysis, demand and supply analysis, telecommunications and so on. Data Mining is based on mathematical algorithm and analytical skills to drive the desired results from the huge database collection.
It can be technically defined as the automated mining of hidden information from large databases for predictive analysis. Web mining requires the use of mathematical algorithms and statistical techniques integrated with software tools.
Data mining includes a number of different technical approaches, such as:
- Data Summarization
- Learning Classification Rules
- Finding Dependency Networks
- Analyzing Changes
- Detecting Anomalies
The software enables users to analyze large databases to provide solutions to business decision problems. Data mining is a technology and not a business solution like statistics. Thus the data mining software provides an idea about the customers that would be intrigued by the new product.
It is available in various forms like text, web, audio & video data mining, pictorial data mining, relational databases, and social networks. Data mining is thus also known as Knowledge Discovery in Databases since it involves searching for implicit information in large databases. The main kinds of data mining software are: clustering and segmentation software, statistical analysis software, text analysis, mining and information retrieval software and visualization software.
Data Mining therefore has arrived on the scene at the very appropriate time, helping these enterprises to achieve a number of complex tasks that would have taken up ages but for the advent of this marvelous new technology.