Data Mining as a Practical Business Tool

The tools and technologies available to business continue to grow. Many technologies have been developed over time; these have subsequently been used to leverage corporate databases. Data mining is another step along that path. Pilot Software explains the path of evolution using a table similar to the one below [3]:

Evolutionary Step Business Question Enabling Technologies Product Providers Characteristics
Data collection (1960s) "What was my total revenue in the past five years?" Computers, tapes, disks IBM, CDC Retrospective, static data delivery
Data access (1980s) "What were the unit sales in Ontario last month?" Relational databases (RDBMSes), SQL, ODBC Oracle, Sybase, Informix, IBM, Microsoft Retrospective, dynamic data delivery at record level
Data Warehousing and Decision Support (1990s) "What were the unit sales in Canada last month?  Drill down to Vancouver." On-line analytical processing (OLAP), multidimensional databases, data warehouses Pilot, Comshare, Arbor, Cognos, Microstrategy Retrospective, dynamic data delivery at multiple levels.
Data Mining (emerging today) "What's likely to happen to Vancouver unit sales next month?  Why?" Advanced algorithms, multiprocessor computers, massive databases Pilot, Lockheed, IBM, SGI, numerous startups (nascent industry) Prospective, proactive information delivery.

Data mining now reveals information that could never been discovered before because it's been too time consuming using traditional techniques [3].

Data mining is slowly gaining acceptance as a indispensable tool in the business world. Gerber reports that data mining is still in its infancy (and so care should be required in its use), but that it is a useful tool. [5] In time, data mining usage in production information systems will increase.

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