What is Data Mining?
Data mining is the process of converting raw data into useful information. In this process, data mining software or tools are used to search for patterns in large volumes of datasets. This helps businesses to learn more about their customer behaviors and trends and how they can develop more effective marketing strategies.
Additionally, data mining assists companies to decide whether they can reduce or increase their sales. It relies on effective data mining processes, data warehousing and data mining software.
Data Mining Process
Data mining process happens in five steps:
- First, data is collected by organizations and then loaded into their data warehouses.
- Then, the organizations store and manage their data either on the cloud or on in-house servers.
- After that, management teams, business analysts and IT professionals determine how the data can be organized.
- The data is then sorted out by application software based on the user’s results.
- Lastly, the data is presented in a format which can be read or shared very easily. Mostly, this is typically in the form or graphs or tables.
Data warehousing usually happens when companies centralize all their data into one database or program. Data warehousing allows companies to spin off segments of the data for specific analysis or utilization.
However, in some cases the data analysts may begin with the type of data they want, and then create data warehouses based on that data. Many organizations use their data to support the management decision-making processes, regardless of how they organize it.
Data Mining Software
This is the software program used to analyze patterns and relationships in data. This is usually based on the user’s request.