Data Warehouses and Data Mining

This article gives a detailed summary of the role of data warehouses and data mining, and their relationship to organizational databases. As you read, pay attention to how data warehouses are used to improve decision-making in organizations. Keep a summary in your notes of how an organization you are involved with could benefit from data mining and data warehousing.

How does Data Mining Work?

Several types of analytical software are available: statistical, machine learning, and neural networks. Generally, four types of relationships are sought:

  1. Classes: stored data is used to locate data in predetermined groups.
  2. Clusters: data items are grouped according to logical relationships or consumer preferences.
  3. Associations: data can be mined to identify associations.
  4. Sequential patterns: data is mined to anticipate behavior patterns and trends.