Define data mining and Enumerate Five Example Application that can benefit by using Data mining

Subject: Data Mining And Business Intelligence

Topic: Introduction to Data Mining

Difficulty: Low

dmbi(26) • 4.0k  views

Data Mining:-

Data mining in the information system is like mining the earth. While mining finds out the hidden valuables in the earth, data mining not only finds out but also provides analysis of the hidden patterns of data in a data warehouse. Data mining aims at exploring knowledge from, data warehouses it organizes data in a manner so that it can derive the inherent meaning to contribute in the knowledge base. The data from a database or a data warehouse is first sorted to prepare the target data and then analyzed to find out the structure, correlations and the meaning that it contains. enter image description here As shown in Figure , data mining contributes in exploring hidden patterns of data and enriches shown in Figure 1, data mining contributes in exploring hidden patterns of data and enriches business KNOWLEDGE. Data mining has its application in almost every business area. nriches business KNOWLEDGE. Data mining has its application in almost every business area.

Applications of Data Mining:

1.Data mining applications for Finance A huge amount of data is generated in online transactions, so the ability to identify the right information at the right time can mean the difference between gaining or losing millions of dollars:

  • Increase customer loyalty
  • Help banks predict customer behaviour and launch relevant services and products

  • Discover hidden correlations between various financial indicators

  • Improve due diligence
  • Identify fraudulent or non-fraudulent actions

2.Data mining applications for Healthcare

The pharmaceutical industry produces a large amount of documents that are often underutilized. Data mining can improve health systems and reduce costs:

  • Provide information that can fuel competitive advantage.
  • Support to the R&D process
  • Discover the relationships between diseases and the effectiveness of treatments
  • Support healthcare

    3.Data mining applications for Intelligence

Data mining helps analyze data and clearly identifies how to connect the dots among different data elements. This is an essential aspect for government agencies:

  • Reveal hidden data
  • Improve intrusion detection with a high focus
  • Convert text based crime reports
  1. Data mining applications for Telecommunication

The large volumes of call, customer and network data generated and stored by telecommunications companies require data mining to extract hidden knowledge and identify useful data to better understand customers and detect fraud:

  • Gain a competitive advantage
  • Increase customer loyalty
  • Support customer segmentation strategy
  1. Data mining applications for Energy

In the Oil & Gas industry, the large amount of unstructured information integrated with traditional structured data offers a clear and full picture of the process. Data mining offers solid support for the upstream oil and gas industry:

  • Capture weak signals
  • Structure identification of important information,
  • Improve core processes.
  • Extract—in real time—the relevant knowledge
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