Data Mining Essay

1839 Words8 Pages
Running Header: ASSIGNMENT 4: DATA MINING 1 Assignment 4: Data Mining Student: Peter M. Burke Instructor: Kimberly Anthony CIS 500: Information Technology for Management June 3, 2012 ASSIGNMENT 4: DATA MINING 2 Data mining is the process of analyzing data from different perspectives and summarizing it into useful information (Frand, Data Mining: What is Data Mining, p.1). This information is used by organizations to increase revenue, improve processes, increase response rates, and cut costs. Data mining software allows the user to analyze data from many different dimensions, categorize it, and summarize the relationships identified. Technically, data mining is the process of finding correlations or patterns among many different fields in large relational databases (Frand, Data Mining: What is Data Mining, p.1). Data mining is primarily used by organizations with a strong consumer focus. It enables these companies to determine relationships among internal factors such as price and product positioning, and external factors such as economic indicators, competition, and customer demographics. Once these relationships are recognized, the organization can make strategic decisions and take action. One type of data mining is predictive analytics. Predictive analytics searches for patterns in historical data to identify future risks or opportunities (Vijayan, September 20, 2011, p.1). Organizations can gain significant long-term benefits by applying predictive analytics to their operational and historical data. Predictive analytics can enable organizations to identify and respond to new opportunities quicker. Unlike traditional business intelligence practices, which are more backward looking in nature, predictive analytics is focused on helping organizations acquire actionable intelligence based on historical data. Predictive analytics is

More about Data Mining Essay

Open Document