The
number of people using internet is increasing in more than
exponential rate. As a consequence of all these, the data is getting
accumulated in an unimaginable rate. This massive data makes the
traditional methods of analyzing the data almost worthless.
Traditional methods usually involve analysing the data, record by
record which will consume exponential amount of time even with
today's modern computers.
Here
comes our savior to address this problem, “Data Mining” . Data
mining is the process of mining useful information out of this
massive data by application of intelligent algorithms and machine
learning techniques.The automated, prospective analyses offered by
data mining move beyond the analyses of past events provided by
retrospective tools typical of decision support systems. Data mining
tools can answer business questions that traditionally were too time
consuming to resolve. They scour databases for hidden patterns,
finding predictive information that experts may miss because it lies
outside their expectations.
Data
mining is primarily used today by companies with a strong consumer
focus - retail, financial, communication, and marketing
organizations. It enables these companies to determine relationships
among "internal" factors such as price, product
positioning, or staff skills, and "external" factors such
as economic indicators, competition, and customer demographics. And,
it enables them to determine the impact on sales, customer
satisfaction, and corporate profits. Finally, it enables them to
"drill down" into summary information to view detail
transactional data.
