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Data Mining

In: Computers and Technology

Submitted By sibwilliams
Words 1012
Pages 5
Data Mining
6/3/12
CIS 500

Data Mining is the process of analyzing data from different perspectives and summarizing it into useful information. This information can be used to increase revenue, cut costs or both. Data mining software is a major analytical tool used for analyzing data. It allows the user to analyze data from many different angles, categorize the data and summarizing the relationships. In a nut shell data mining is used mostly for the process of finding correlations or patterns among fields in very large databases.
What ultimately can data mining do for a company? A lot. Data mining is primarily used by companies with strong customer focus in retail or financial. It allows companies to determine relationships among factors such as price, product placement, and staff skill set. There are external factors that data mining can use as well such as location, economic indicators, and competition of other companies.
With the use of data mining a retailer can look at point of sale records of a customer purchases to send promotions to certain areas based on purchases made. An example of this is Blockbuster looking at movie rentals to send customers updates regarding new movies depending on their previous rent list. Another example would be American express suggesting products to card holders depending on monthly purchases histories.

Data Mining consists of 5 major elements:
• Extract, transform, and load transaction data onto the data warehouse system.
• Store and manage the data in a multidimensional database system.
• Provide data access to business analysts and information technology professionals.
• Analyze the data by application software.
• Present the data in a useful format, such as a graph or table.
There are different types of analysis that are available:
• Artificial neural networks: Non-linear

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