Data Mining is defined as the extraction of required information buy mining hardware or knowledge from large databases. This is a powerful new technology with great potential to help companies focus on the most important information in their data warehouses. The tools related to this new technology predict future trends and behaviors, allowing businesses to make proactive, knowledge-driven decisions. The automated, prospective analysis offered by data mining move beyond the analysis of past events provided by retrospective tools typical of decision support systems. Data mining tools can answer business questions that traditionally were too time consuming to resolve. This new technology takes the process of knowledge and information acquisition beyond retrospective data access and navigation to prospective and proactive information delivery.
The Technology derives its name from the similarities between searching for valuable business information in a large database and mining a mountain for a vein of valuable ore. Both processes require either sifting through an immense amount of material, or intelligently probing it to find exactly where the value resides. Data mining automates the process of finding predictive information in large databases. Data mining tools sweep through databases and identify previously hidden patterns in one step. Data mining techniques can yield the benefits of automation on existing software and hardware platforms, and can be implemented on new systems as existing platforms are upgraded and new products developed.. Powerful systems for collecting data and managing it in large databases are in place in all large and mid-range companies.
Data Mining is predicted to be amongst the top five technologies of the world that are poised for fantastic growth and development in the next five years. Data Mining today assumes importance and significance because of the increasing thrust on knowledge and information which is an essential factor in successfully running ebusiness. Data Mining cannot replace completely human analysis and interaction. But it can greatly assist human intellect to take well thought out decisions through fast computing capabilities and through pinpointing thrust areas of the concerned business.
Data Mining is considered as the new thrust area technology, the blue-eyed boy of the ebusiness world, with great scope for expansion beyond the present day horizons of the e enterprises. Data is vital to the growth of ebusiness. And getting the right data at the right time is the crux of good business sense. Growth of web enterprises is dependent solely on knowledge and information processing. Data Mining therefore has arrived on the scene at the very appropriate time , helping these enterprises to achieve a number of complex tasks that would have taken up ages but for the advent of this marvelous new technology.