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Concept of Data Mining

CA Anurag Sharma , Last updated: 21 July 2021  

You switch to Amazon or Flipkart and suddenly you find "Top picks for you".

There's "People you may know" on social networking sites.

Suddenly Youtube has list of videos ready for you.

Have you wondered why?

Let's understand all this through a concept called "Data Mining".

What actually is "Data Mining" and How is it related to above?

Internet is full of data. This world is a world of information where you can find endless data with just a click. But how will you make this data useful? This can be done by linking the patterns in the data and this is what is called "Data Mining". It an information analysis tool that automatically discovers patterns and relationships in a data warehouse.

Concept of Data Mining

Data warehouse is basically organizing data into one data base and data mining is the process of extracting the useful information from that data warehouse.

Data mining is also known as Knowledge discovery in Data (KDD).

Now coming back to the above examples.

You might have done some shopping relating to the "Top picks for you" that are being depicted on the Amazon or Flipkart; or you might have searched about some similar products. Now your shopping patterns or search results are analyzed by these sites to set those items for you.

Same goes with Youtube where you must have searched or watched the relating videos.


That's how data mining works.

Data Mining is the future of the marketing world in this intense competition. This can help companies in expanding to the markets where their products can be sold easily by looking at the behavioral patterns of their targeted customers.


Companies are using Data Mining for increasing their revenues or reducing their costs. 

Data mining also helps banks and other financial institutions in risk analysis.

In this age of information technology Data Mining presents a big opportunity for companies and businesses to grow.

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