Data Mining
Data Mining
Melody McIntosh
Dr. Janet Durgin
Information Systems for Decision Making
December 8, 2013
Introduction Data mining, or knowledge discovery, is the computer-assisted process of digging through and analyzing enormous sets of data and then extracting the meaning of the data. Data mining tools predict behaviors and future trends, allowing businesses to make proactive, knowledge- driven decisions Although data mining is still in its infancy, companies in a wide range of industries – including retail, finance, health care, manufacturing transportation, and aerospace - are already using data mining tools and techniques to take advantage of historical data. By using pattern recognition technologies and statistical and mathematical techniques to sift through warehoused information, data mining helps analysts recognize significant facts, relationships, trends, patterns, exceptions and anomalies that might otherwise go unnoticed. A data mining algorithm is a set of heuristics and calculations that creates a data mining model from data. To create a model, the algorithm first analyzes the data you provide, looking for specific types of patterns or trends. The algorithm uses the results of this analysis to define optimal parameters for creating the mining model. These parameters are then applied across the entire data set to extract actionable patterns and detailed statistics This paper will Determine the benefits of data mining to the businesses when employing:
Predictive analytics to understand the behavior of customers, Associations discovery in products sold to customers, Web mining to discover business intelligence from Web customers, and
Clustering to find related customer information. It will also assess the reliability of the data mining algorithms and decide if they can be trusted and predict the errors they are likely to produce, analyze privacy concerns
Melody McIntosh
Dr. Janet Durgin
Information Systems for Decision Making
December 8, 2013
Introduction Data mining, or knowledge discovery, is the computer-assisted process of digging through and analyzing enormous sets of data and then extracting the meaning of the data. Data mining tools predict behaviors and future trends, allowing businesses to make proactive, knowledge- driven decisions Although data mining is still in its infancy, companies in a wide range of industries – including retail, finance, health care, manufacturing transportation, and aerospace - are already using data mining tools and techniques to take advantage of historical data. By using pattern recognition technologies and statistical and mathematical techniques to sift through warehoused information, data mining helps analysts recognize significant facts, relationships, trends, patterns, exceptions and anomalies that might otherwise go unnoticed. A data mining algorithm is a set of heuristics and calculations that creates a data mining model from data. To create a model, the algorithm first analyzes the data you provide, looking for specific types of patterns or trends. The algorithm uses the results of this analysis to define optimal parameters for creating the mining model. These parameters are then applied across the entire data set to extract actionable patterns and detailed statistics This paper will Determine the benefits of data mining to the businesses when employing:
Predictive analytics to understand the behavior of customers, Associations discovery in products sold to customers, Web mining to discover business intelligence from Web customers, and
Clustering to find related customer information. It will also assess the reliability of the data mining algorithms and decide if they can be trusted and predict the errors they are likely to produce, analyze privacy concerns
References: Armonk. (2010, 07 21). Memphis Police Department Reduces Crime Rates with IBM Predictive Analytics Software Kaith, R. (2011). Benefits Of Predictive Analytics And Data Mining Services. Retrieved from http://www.articlesnatch.com/Article/Benefits-Of-Predictive-Analytics-And-Data- Vijayan, J. (2011, 09 20). How predictive analytics can deliver strategic benefits. Retrieved from Computerworld:http://www.computerworld.com/s/article/9220131/How_predictive_anal