How data mining supports business activities?

Data mining techniques are the result of a long process of research and product development. This evolution began when business data were first stored on computers, continued with improvements in data access, and more recently, generated technologies that allow users to navigate through their data in real time. Data mining takes this evolutionary process beyond retrospective data access and navigation to prospective and proactive information delivery.

Data mining is ready for application in the business community because it is supported by three technologies that are now sufficiently mature:

• Massive data collection and storage
• Powerful multiprocessor computers
• Data mining algorithms

Commercial databases are growing at unprecedented rates. The accompanying need for improved computational engines can now be met in a cost-effective manner with parallel multiprocessor computer technology. Data mining algorithms embody techniques that have existed for at least ten years, but have only recently been implemented as mature, reliable, understandable tools that consistently outperform older statistical methods.

In the evolution from business data to business information, each new step has built upon the previous ones