Oct 24, 2008

Why Data Mining?

"We are overwhelmed with data but starved of knowledge"

In today's world we are overwhelmed with data and information from various sources. The advancement in the field of IT makes collection of data easier than ever before. A business enterprise has various systems like transaction processing system, HR management system, Accounting system and so on and each of these systems are collecting huge piles of data everyday.

Are these data help us take more intelligent decisions? The answer is no. To take better decisions you need to discover and understand the underlying patterns involved in your business from these data. For example, it's no more enough for a retailer to know just the amount of sales, profit and expenses he is making in this highly competitive business environment. To expand its business and achieve higher goals it has to search for answers to the questions like:

  • Which products are bought most often together?
  • Identify the segment of customers who are most likely to buy certain products so that it can promote those products only to them.
  • What should be profit range five years from now?

Data mining has the answers to all these questions. Data mining can help organizations to have useful insights into its business from the data it has collected over the years and take better decisions to achieve new heights.

1 comment:

Venkatesh said...

hi sarafaraz...your post is useful to me...thanx for the post...