Introduction

Chapter-5, starts with the definition of Data mining as a process used by companies to
turn raw data into useful information by using software which helps to learn more about
their customers thus develop more effective marketing strategies, increase sales and
decrease costs.

Functionality of Data Mining

Following the introduction, the chapter moves on to talk about how Data Mining works.
The entire process is broken down into 5 steps namely Data collection, data
warehousing, data organizing, data sorting, and finally presenting the data in the needed
format. To elaborate on Data warehousing, it is an important aspect of data mining
where companies centralize their data into one database or program. In data mining, we
classify data into many types for the purpose of implementation and the process flows
initiating with the business understanding, data understanding, data interpretation,
modelling, evaluation, and deployment.

Data Mining Techniques: The techniques involved in the data mining are
Classification, Clustering, Regression, Association rules, Outer detection, Sequential
Patterns, and Prediction. Then the challenges that are involved in the implementation of
Data mining are discussed. Some of the Data mining tools that are available are R-
language, and Oracle Data Mining. Then the chapter progresses to the next section
explaining the Benefits and the disadvantages of Data Mining.

Data Mining Applications: This section elaborates on the application of Data mining in
the context of communications, insurance, education, manufacturing, banking, Retail,
Service Providers, E-Commerce Super Markets, Crime Investigation, Bioinformatics.
Some Data mining Examples and results are considered that seems to be achieving
transformative results such as Groupon Aligns Marketing Activities, and Build the Perfect
Pizza.

In comparison aspect, data mining activities can be divided into 2 categories; Descriptive

Data Mining and Predictive Data Mining that involves classes descriptions, Data
Characterization, Data Discrimination, Mining Frequent Patterns, Associations, and
Correlations, Frequent item set, Frequent Subsequence, Frequent Substructure,
Association Analysis, Correlation Analysis.

Progressing further, the different sources of data that are used in the data mining
process are detailed. The next section deals with the future of Data Mining and how it is
used in Business to make better managerial decisions.

Data Mining - Applications & Trends

Finally, this section concludes discussing the applications and the trends of data mining
in the areas viz., Financial Data Analysis, Retail Industry, Telecommunication Industry,
Biological Data Analysis, Scientific Applications, Intrusion Detection.

Data mining concepts are still evolving and there are latest trends that we get to see in
different domains.