It internal and external factors impacting the sales.

It
is estimated that amount of data in the world is increasing to double after
every 20 months. 24 Systems are being over whemblened by data in the form of
database. The primary necessity of any Data Mining 21, 23 work is the
database. A database is an organized and usually large collection of detailed
facts concerning some domain. The major aim of Data Mining is to examine this
database for regularities that may lead to a better understanding of the domain
described by the database and finding some new directions that were unknown before.
In Data Mining we generally assume that the database consists of a collection
of individual facts. Depending on the domain, individual entities can be
anything from customers of a bank to patients of a particular illness or books
in a library. For each entity, the database gives us detailed information
concerning the different characteristics of that entity, such as the name and
address of a customer of a bank, or the accounts owned.

Today’s
businesses have grown from simple sale and profit relation in to a much broader
spectrum. One can simply not afford to jump start a business hoping that
selling would yield the revenues without giving due consideration to market
needs, consumers’ buying behavior, internal and external factors impacting the
sales.

Business
models are complex and interdependent upon the main functionaries of the organization.
Companies banking on market demographics and psychographics and tailoring their
products / services accordingly have higher chances of generating sales
revenue. But, to gather these demographics companies need to be able to gather
data, analyze it, interpret it, and process it with the internal data by
incorporating the decision makers’ intent to full understand the patterns that
need to be addressed to remain competitive.

This
goes beyond a simple data collection and relying on basic tools and techniques
for this purpose. Today’s economy is much more dependent upon the data and size
of data alone calls for the specialized techniques to help going in depth
analysis of data at hand. This analysis would yield hidden insights that would
be helpful in better strategic positioning of the business portfolio and
decision making.

It
is obvious that we are talking about much more then Information extraction from
the data. Business intelligence (BI) is a pinnacle to make all the data
meaningful to the decision makers. It is an umbrella of tools, techniques and
processes for analyzing the collected data to a depth which were not possible
before and making this processed data, meaningful by incorporating internal
data hence making the actionable information for critical decisions. Data
mining is a process under the Business Intelligence.

Data
mining is one of the techniques in the overall Business Intelligence framework
that goes beyond the simple data extraction to identify the hidden structures
in the data sets. Many people confuse data mining as a tool to help in data
extraction which does not come under the scope of the Data Mining.

Put
simply, Data Mining is a process of mining the extracted data out of the large
data sets to identify the hidden patterns which were not known previously and
can be helpful in analyzing and understanding the factors like consumers’
buying behavior which then can be classified based on regional markets and
decision makers could design marketing campaigns to tailor their products /
services to match the consumers’ needs and wants. Data mining is a subfield of
the Computer Sciences. By incorporating techniques from statistics, databases,
machine learning data mining aids the larger process of Business Intelligence
by digging deep into the larger sets of data to identify the patterns,
structures and presenting this critical information to the overall framework
for incorporating and presenting the information in a meaningful way for
competitive decision making 2.

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