(Solved Homework): The ability to get information out of all the data gathered today is critical to businesses. Discuss in detail the concepts

The ability to get information out of all the data gathered today is critical to businesses. Discuss in detail the concepts of Data Warehouses and Data Mining and how they meet the needs of obtaining the information from all this data we have today.

Expert Answer

 Data mining is the process of finding patterns in the data that are stored in organization database. These patterns provide valuable information to those who needs it. Data warehousing is the process by which data is collected from different sources and stored in database. The primary goal or data warehousing is to provide business with useful information with the help of data mining.

Data warehousing includes:-

  • Retrieving data from different sources
  • Analyzing data that are obtained
  • Extracting the data that would be useful or removing the unnecessary data
  • Loading the extracted data in the database or central computer in organization
  • Transforming data
  • Managing the stored data appropriately

Data warehousing is designed to provide the structure that stores useful data and provide useful information to the users. Data ware housing can be designed by using customer related data, sales related data or product related data. These data are stored in the central computer in organizations which can be accessed by the authorized individual.

Data warehousing is important in any organization because

  • Any work in an organization requires information about different things. Information plays key role in any business. For example customer information, sales information and product related information are used to develop effective marketing strategies.
  • Success of the organization depends on the research done prior to taking any big decision or gaining knowledge about all aspects of the business.
  • Information is never ending. We can extract information from different sources but that will become complicated and time taking. Data warehousing extract the useful information required from the available data.
  • It saves time by eliminating the unnecessary data.
  • It helps in decision making process by providing useful information.
  • It creates infinite number of combination of information.

Data mining is the extraction of extremely useful data from large database. Data mining includes:-

  • Extract the data, filter and segregate the data and load it to the data warehouse system.
  • Store the data
  • Manage the data in multiple database system
  • Provide data access to the users
  • Analyze, transform and present the data in a useful format
  • Data mining work accurately and provide clarity of information.
  • Sales marketing, Customer retention, inventory, buying pattern etc work with the typical applications of data mining by providing necessary information as per the search result.

The advantages of data mining are as follows:-

  • Data mining helps in research and development, medical science, engineering and technology, games etc
  • Helps in decision making by providing appropriate information.

Data warehousing and data mining work with the concept of providing memory and intelligence to the organization and helps in decision making process.

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