Why Data Mining Is The Extraction Of Knowledge From The...

Data mining is the extraction of knowledge from the various databases that was previously unknown (Musan Hunyadi, 2010). Data mining consists of using software that conglomerates artificial intelligence, statistical analysis, and systems management in the act of extracting facts and understanding from data stored in data warehouses, data marts, and through metadata (Giudici, 2005). Through algorithms and learning capabilities data mining software can analyze large amounts of data and give the management team intellectual and effective information to help them form their decisions. The intention for data mining is to analyze prevailing data and form new truths and new associations that were unknown prior to the analysis (Musan Hunyadi,†¦show more content†¦These visualization tools that are made through the management team’s queries, are synthesized with the reports. Charts, tables, and graphs can help management teams make important decisions by allowing them to see data in a quantitative view. The management team can use this new perspective to understand all areas of their query and, in turn, they can make better and more informed decisions. How Business Intelligence Systems are used Business intelligence systems are the combination of operational data and analytical tools to aid managers to comprehend the â€Å"capabilities available in the firm, the industrial trends, future development in technologies and the market and even their competitor’s actions and the resulting implications† (Wang, 2014, p. 1083). There are many ways managers can use the information a business intelligence system gives them such as understand customer behavior, analyzing competition understanding investment options, and knowledge protection. Customer Behavior The market place, even at a local level, is more competitive then it has been at any other time in history. Companies must put a major emphasis on gaining customer loyalty and understanding customer behavior in order to compete in today’s market place. Tuta et al. (2014) offer that intelligent technologies provide new options for manages to understand the market place they partake in and the competition in that market place. Customer Relationship Management systems are a new way