What Is Database and What Is Data Mining?

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Database: Database is a collection of information which is organized in a manner which can be easily accessed, managed and updated whenever we want. Databases are becoming as common in the workplace as other things like pens, staplers, calculators. Businesses use databases to keep track of payroll, vacations, inventory, and a multitude of other tasks. Basically businesses use databases anytime a large amount of data must be stored in such a manner that it can easily be searched, categorized and recalled in different means that can be easily read and understood by the end user. Other examples of databases are: If you purchase something at the grocery store, the price is being looked up in a database based on the UPC (Universal Product Code) Databases are used just about everywhere including banks, retail, websites and warehouses. Banks use databases to keep track of customer accounts, balances and deposits. Retail stores can use databases to store prices, customer information, sales information and quantity on hand. Data Mining: “Data mining is the practice of automatically searching large stores of data to discover patterns and trends that go beyond simple analysis. Data mining uses sophisticated mathematical algorithms to segment the data and evaluate the probability of future events. Data mining is also known as Knowledge Discovery in Data (KDD).” (http://docs.oracle.com/cd/B28359_01/datamine.111/b28129/process.htm) Data mining is becoming very useful tool today for the companies who have a strong consumer focus like Wal-Mart, Safeway, and Costco. This enables to determine companies a strong relationship among internal factors such as price, product positioning, staff skills, and external factors such as economic indicators, competition, and customer demographics. Through this they can determine the impact on sales, customer satisfaction, and corporate

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