Data Mining Research Paper Example | Topics and Well Written Essays - 1250 words

Data Mining - Research Paper Example Data mining tools are vital because they have significantly reduced the time taken in answering business questions, which were traditionally too much time consuming to analyze. Currently, most organizations have adopted and implemented the existing data mining software and hardware platforms to improve the value of their stored data. These hardware platforms can be integrated with new products and system as technology advances. Integrating data mining hardware platforms with other parallel processing computers or high performance client/server improves the analysis of massive databases (Hoptroff & Hoptroff, 2001). Foundation of Data Mining Data mining techniques emerged as a result of product development and a long process of research. This idea was first developed when businesses began storing business information on computers. Significant improvements have been witnessed in data access and generated technologies, which allow users to search their data, in real time (Williams & Simo ff, 2006). Data mining software is currently available for use, in the business world, because of the three technologies that support it, and they include data mining algorithms, massive data collection, and powerful multiprocessor computers (Williams & Simoff, 2006). The amount of raw data stored in business databases is currently exploding. A database is measured in gigabytes and terabytes. In the current, competitive business environment, raw data alone does not provide enough information for studying and predicting the market environment. This has called for the need to convert these terabytes of raw data into other significant insights that easily provide a guide for their investment, marketing and management strategies (Prabhu, 2004). Data Warehouses Significant improvements in data transmission, data capture, storage capabilities, and processing power are enabling companies to consolidate their various databases into data warehouse (Prabhu, 2004). Data warehousing is the proc ess of centralizing data retrieval and data management. Data warehouses store large amounts of data based on certain categories that make data more easily to sort, retrieve, and interpret. They also enable managers and executives to manage a series of business transactions, and other information that help in making informed business decisions. Researchers have predicted that all companies shall have adopted and integrated data mining tools, in their business, by the year 2020 (Prabhu, 2004). Companies benefit from data mining when meaningful patterns and trends are extracted from the stored data. How Data Mining Works Data mining tools employ modeling as a technique for performing data analysis. Modeling involves the creation of a model in one situation that is known, and applying the results in another situation where the results are unknown (Kargupta, 2007). Computers are equipped with lots of information about a number of situations, whose answers are known. The data mining softw are, on the computer, runs through the data, and filters the aspects of data that match the designated model. Once the model is developed it can be applied in similar situations, whose answers are unknown. This technique has been in use over the past centuries, but it recently became applicable, in the business field, when communication and data storage capabilities required the collection and storage of huge amounts of data, and the ability to automate