Data are facts and figures, which are easily processed by computer. Data processing takes place in different formats and databases by organizations.
The data is categorised in various forms like:
- Operational or transactional data like sales, payroll, cost etc.
- Non-operational data like forecast data, industry sales and macro-economic data
The interrelationship between data gives us information about various factors. For example, analysis of point of sale transaction in retail outlets gives us information about selling of different kinds of product.The information later is converted to knowledge, which tells us about future trends and historical patterns. After getting information from retail outlets this information is used to get knowledge about buying behaviour of the consumer. Manufacturer, retailer and supplier further use the knowledge.
The data mining involves various processes like data capturing, data processing, data transmission and storage. All this processes has led to the evolution of data warehouses. Data warehousing involves data management and data retrieval.
Data warehousing also a new term, which has its own concepts. In an organisation, data warehouse represents a central repository of all information. The change in market is never constant and due to this market nature, the data warehouses have become a reality for many companies.
The data mining is used by various sectors. In entertainment, sector important information is mined through video rental history, which helps in creating strategies for future rentals to individual customers.
After analysing customer buying behaviour many cardholder companies suggests products and services to its users after analysing the data. It becomes easy to target the right audience for the promotion or branding.
NBA or National Basketball Association is also exploring the data mining application. It records the images during the basketball games. There are soft wares which analysis the movement of the players, which help the coaches to monitor the right and wrong moves. The coach will be able to study very player closely, understand his way of playing, and further strategize the techniques and gaming rules.
With video clips, coach can educate the players about kicks, jumps and shots. Weaknesses and strengths can be outlined and thus effective basketball playing can be learnt.
Elements of data mining
- Extraction, transformation and transaction of data onto warehousing system
- Storage of data in multidimensional databases
- Providing data to marketing analyst and professionals
- Analysis of data
- Presentation of data in right format
Four types of relationships, which are sought after collection of data:
Stored data used for predetermined groups. Example; to trap and increasing the traffic.
Data clustered according to consumer preference. Example; to identify market affinities
Data used for identification of associations. Example; buying patterns
To identify trends and behaviour patterns. Example; consumer purchasing behaviour.