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What Is Data Mining and Its Importance

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Discuss the important features of data mining tools
Data mining is the process of fetching hidden information from huge databases for the purpose of analysis. Basically, it is a method to search for information that can prove to be useful for an organisation and to extract that knowledge from very lengthy and large databases. It uses a variety of statistical algorithms and analysis techniques to derive results. Although, this might sound easy but data mining is a lengthy process and requires loads of time and patience. It requires a lot of man-hours as an application can mine the data from the databases but it is the responsibility of the human to describe the data to look for to the application and also to find and collect the databases. (Naxton, n.d.)
Analysis is key to outperforming your competition in today’s world. Almost all businesses rely on data to figure out the future market trends, know more about their customers and their preferences etc. An example of data mining is why companies advertise on Facebook as they get to reach a vast audience and learn about their habits. The information is derived from the advertisements the people click on, the time spent on that specific advert, the type of adverts they hide or like, and all this data is of value to companies to understand the market.
Data mining comprises of 5 elements (“Data Mining—Why is it Important?,” n.d.):
• “Extract, transform, and load transaction data onto the data warehouse system”
• Store data in a MDB system to manage
• Supply the data to professionals such as Business Analysts, Data Scientists etc.
• Understand the data using applications
• Represent the data in the form of graphs, charts or tables making it easy to understand
According to Connolly, Beg and Holowczak (2008), the important features of data mining tools are as follows:
Data preparation: Of all the aspects of data

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