Data mining is the process of analyzing hidden patterns of data according to different perspectives for categorization into useful information, which is collected and assembled in common areas, such as data warehouses, for efficient analysis, data mining algorithms, facilitating business decision making and other information requirements to ultimately cut costs and increase revenue
Machine learning is a method of data analysis that automates analytical model building. It is a branch of artificial intelligence based on the idea that systems can learn from data, identify patterns and make decisions with minimal human intervention..
The first step in data mining is gathering relevant data critical for business. Company data is either transactional, non-operational or metadata. Transactional data deals with day-to-day operations like sales, inventory and cost etc. Non-operational data is normally forecast, while metadata is concerned with logical database design. Patterns and relationships among data elements render relevant information, which may increase organizational revenue. Organizations with a strong consumer focus deal with data mining techniques providing clear pictures of products sold, price, competition and customer demographic.
The first step in data mining is gathering relevant data critical for business. Company data is either transactional, non-operational or metadata. Transactional data deals with day-to-day operations like sales, inventory and cost etc. Non-operational data is normally forecast, while metadata is concerned with logical database design. Patterns and relationships among data elements render relevant information, which may increase organizational revenue. Organizations with a strong consumer focus deal with data mining techniques providing clear pictures of products sold, price, competition and customer demographic
Data Mining benefits:
Specific data mining benefits vary depending on the goal and the industry. Sales and marketing departments can mine customer data to improve lead conversion rates or to create one-to-one marketing campaigns. Data mining information on historical sales patterns and customer behaviors can be used to build prediction models for future sales, new products and services.
