Data Mining is a tool or technique of finding unusual pattern from large volume of data automatically.

This technique automatically provides some information, which can be very helpful to management for decision making.

For Example: Finding those customers information, which have interest in sport goods by looking at their purchasing pattern over the years?

Data Mining can be related to a tool used for finding gold out of coal mines automatically.

Data mining tool convert a raw data into knowledge, not in just simple information.

Following stages are used to convert the raw data into knowledge 

Data Mining Operations:

§  Selection: In this target data is selected from large volume of data.

§  Pre-processing: In this target data is pre-processed for required data fields or information. The non-required data fields are removed from target data.

§  Transformation: In this stage processed data is transformed in a form such that it can be easily navigated.

§  Data Mining: This is the most important stage, in this data is converted into certain patterns for extraction of knowledge out of it.

§  Interpretation and Evaluation: In this stage the data patterns are converted into useful information known as Knowledge based information, which helps in efficient and effective decision making process.


§  Predict future trends, customer purchase habits

§  Help with decision making

§  Improve company revenue and lower costs

§  Market basket analysis

§  Fraud detection


§  User privacy or security

§  Amount of data is overwhelming

§  Great cost at implementation stage

§  Possible misuse of information

§  Possible in accuracy of 


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