Data mining is the process of discovering patterns, trends, and relationships within large sets of data using various techniques such as statistical analysis, machine learning, and artificial intelligence. It is a crucial component of Business Intelligence (BI) and is widely used across industries, including finance, healthcare, retail, and marketing.
Key Steps in Data Mining:
- Data Collection: Gathering data from various sources such as databases, cloud storage, and web applications.
- Data Cleaning: Removing inconsistencies, missing values, and errors to ensure high-quality data.
- Data Transformation: Converting raw data into a suitable format for analysis.
- Pattern Identification: Using algorithms to identify meaningful relationships and patterns in the data.
- Evaluation and Interpretation: Analyzing discovered patterns and deriving actionable insights.