Data Mining and Application of Data Mining

Data Mining (DM) :=

• Data mining, also known as "knowledge discovery," refers to computer-assisted tools and techniques for sifting through and analyzing these vast data stores in order to find trends, patterns, and correlations that can guide decision making and increase understanding. Data mining covers a wide variety of uses, from analyzing customer purchases to discovering galaxies. In essence, data mining is the equivalent of finding gold nuggets in a mountain of data. The monumental task of finding hidden gold depends heavily upon the power of computers. 

 Data Mining Applications :=

Data mining includes a variety of interesting applications. A few examples are listed below:

• By recording the activity of shoppers in an online store, such as Amazon.com, over time, retailers can use knowledge of these patterns to improve the placement of items in the layout of a mail-order catalog page or Web page.
• Telephone companies mine customer billing data to identify customers who spend considerably more than average on their monthly phone bill. The company can then target these customers to sell additional services.
• Marketers can effectively target the wants and needs of specific consumer groups by analyzing data about customer preferences and buying patterns.
• Hospitals use data mining to identify groups of people whose healthcare costs are likely to increase in the near future so that preventative steps can be taken.