Data Mining

Running Head : Data Mining

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Introduction

Data mining is the process of sorting large amounts of data with an aim of picking out the information which is relevant . As much as it finds its large use by financial analysts as well as business intelligence organizations , it is also widely used in the sciences in extracting relevant information from data sets that are enormous and generated by modern observation as well as experimental methods . Data mining is sometimes called data knowledge discovery or data

. It is a powerful and new technology that has been adapted by companies to help them in focusing on the most crucial information in their data bases or data warehouse (D . Hand , H . Mannila ,

. Smyth 2001

Data mining involve data mining tools that help in predicting future trends as well as behaviors , enabling businesses to make decisions that are knowledge-driven . It is also supported by some technologies that enable it to be easily applied in the business community . These technologies include massive data collection , data mining algorithms and powerful multiprocessor computers

Definition of terms

There are several terms that are related to Data mining . One of these terms is Data Cleansing which is defined as the process through which consistence ad correct recording of all the values contained in a data set is ensured . Another term is data navigation which is the process through which different dimensions , levels and slices of details that belong to a multidimensional database are viewed . Another term is data warehouse which is defined as a system through which massive quantities of data is stored and delivered

Data Visualization is the interpretation in multidimensional data of complex relationships visually whereas a decision tree is a structure that is tree-shaped and used to represent a set of decisions . It is through these decisions that rules for the data set classification are generated

Data mining has found quite a lot of usage in the modern world especially in this wake of technology where companies are acquiring a lot of data as they strive to compete in the technological world (Galit Shmueli , Nitin R . Patel and Peter C . Bruce 2006 . By use of predictive techniques , data mining has been effective in uncovering patterns in data . These patterns reveal areas that are necessary for process empowerment . The patterns uncovered also help organizations in making better as well as timelier decisions . Data mining also enables organizations such as companies to increase fraud detection and improve risk management . Data mining is also believed to help SPSS customers in solving problems relating to business . SPSS data mining services as well as solutions have enabled many organizations to obtain recommendable results in many areas (Kantardzic , Mehmed 2003 . For instance , organizations through data mining have been able to double online profits through improving or boosting personalization features They have also been able to improve the rate of response of direct mail campaigns by almost 100 percentages

Pros and Cons of Data Mining

Data mining can help direct...