The storing information in a data warehouse does not provide the benefits an organization is seeking. To realize the value of a data warehouse, it is necessary to extract the knowledge hidden within the warehouse. However, as the amount and complexity of the data in a data warehouse grows, it becomes increasingly difficult, if not impossible, for business analysts to identify trends and relationships in the data using simple query and reporting tools.
Data mining is one of the best way to extract meaningful trends and patterns from huge amounts of data. Data mining discovers .information within data warehouse that queries and reports cannot effectively reveal.
The process of extracting valid, previously unknown, comprehensible, and actionable information from large databases and using it to make crucial business decisions is know as Data Mining.
Data mining is concerned with the analysis of data and the use of software techniques for finding hidden and unexpected patterns and relationships in sets of data. The focus of data mining is to find the information that is hidden and unexpected.
Data mining can provide huge paybacks for companies who have made a significant investment in data warehousing. Although data mining is still a relatively new technology, it is already used in a number of industries. Table lists examples of applications of data mining in retail/marketing, banking, insurance, and medicine.
