Throughout time all organizations have sought ways to make the most benefits from the data they gather. The techniques in implementing that have changed along the years, and thanks to the technological breakthroughs it has become easier and less costly.
Data mining or knowledge discovery is the process of summarizing data from different perspectives in order to get useful information or charts. In other words, data mining is the organization’s way to determine relationships between “internal" factors such as price, product positioning, staff skills, or promotional effects and "external" factors such as economic indicators, purchasing patterns, competition and customer demographics, to enable them to define the impact on sales, customer satisfaction and profits.
Data mining provides information based on the patterns, associations and correlations among the data. This information is analyzed by specialized software and could give knowledge about past patterns and future behavior (e.g.: which products are more susceptible to promotions, which products are selling more, where and when…).
The vast changes in data handling have allowed organizations to integrate their growing databases into data warehouses, thus centralizing data and making it more flexible for access and analysis, and therefore boosting their internet marketing.
Store and manage the data in a multidimensional database system.
Provide data access to business analysts and information technology professionals.
Analyze the data by application software.
Present the data in a useful format, such as a graph or table.