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  • Essay / Data Mining - 1501

    In today's society, businesses face many challenging factors that affect not only their products and services, but also their initiatives to maintain and increase profits. Factors such as product range, profit margins, marketing approaches and resources play a key role in the overall success and longevity of an organization. More importantly, the foundation and key value of an organization is the target audience who will invest in the organization's products and services for which many organizations hope to not only retain their old customers but also attract potential customers. For this reason, it is imperative that an organization collects relevant information about who buys their merchandise and what they buy. Organizations use servers located in large data centers to store large amounts of data containing critical information about customer demographics, purchases, regional productivity and other data used to analyze and support business growth. 'business. Companies have resorted to a common practice known as "data mining" to analyze and manipulate customer data on their servers to discover new patterns and trends, improve marketing approaches, and even prevent fraud. . Data mining is essential to business development because it allows an organization to identify complex relationships between customer behavior data and demographics, build and use predictive business models, and organize important promotion methods. According to Microsoft, data mining is “the process of examining database records to detect patterns and trends in data (Placeholder2). Used successfully, this process allows an organization to manage sales and create innovative marketing techniques to please their middle of paper...... and help businesses make better, wiser business decisions . Many companies create and query a structured query language database, which is a type of simple storage mechanism that allows companies to store and retrieve information in a simple format. From the information in the database, analysts can use reduction as a reporting tool. Reduction is described as the production of information that is quantified and summarized in a standardized structure based on totals, sums, statistics, and other analyses. The most important aspect of the data mining process is to structure and establish a system that will create an effective and efficient model that will represent the data in the best way. Whatever technique an organization uses, the system set up to represent that model will determine what would be a wise approach based on previous data sets..