Data Mining

Written by Jacey Harmon
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Data mining is the process of analyzing data to discover hidden relationships and identify patterns. Data mining uses statistical analysis, machine learning, modeling techniques and database technology to identify hidden trends. Data mining finds relationships in a variety of ways through data analysis. Corporations can use data mining for several applications that can increase the bottom line.

Data mining finds relationships between data through various techniques. Data may indicate relationships through associations. An example of this would be that customers buy milk and cheese at the same time. Another way that data mining finds a relationship is through sequences. An example of a sequence would be a customer buys wood and then buys nails and paint.

Uses for Data Mining Analysis

Businesses stand to profit from data mining analysis in many ways. Corporations can use data mining technology to detect possible fraud. Data mining may identify various purchases from different locations with the same credit card number. A credit card company will then be able to notify the card holder of the possible fraud. Once the card company has figured out that a crime is happening they can take steps to catch the criminal and prevent it from happening again.

Companies use data mining to find relationships to help with several other aspects of their business. They can identify customer buying habits to create personalized marketing strategies. Advertising campaigns can be measured and created by using data mining results to measure the strength of the campaign. By incorporating data mining into a business intelligence program businesses will be able to identify otherwise hidden information.


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