Data mining is the process of finding patterns, connections and correlations within large data sets to predict outcomes. Data mining enables companies to recognize patterns and establish relationships. Data mining involves analyzing data from various perspectives and summarizing it into useful information. The information helps businesses discover previously unrecognized patterns.
Data mining can be broken down into the following five steps:
- Enterprises gather data and load it into data warehouses.
- The data is then stored and managed onsite or in the cloud.
- Analysts, executive teams and IT professionals access the data decide how to organize it.
- Data is sorted.
- Data is presented in a chart or graph.
Data mining helps organizations identify important facts, relationships, trends, patterns and occurrences that may have been overlooked and used to discover patterns and relationships in the data to help make informed decisions. Data mining can help organizations identify sales trends, develop a strategic marketing approach and accurately predict customer loyalty.