Data Mining Tools are analytical engines that use data in a Data
Warehouse to discover underlying correlations. Data Mining Tools are used by
analysts to gain business intelligence by identifying and observing trends, problems and
anomalies.
Because the business environment is so dynamic, it is often difficult for
businesses to quickly identify emerging patterns or trends. Data
Mining Tools help businesses identify problems and opportunities promptly
and then make quick and appropriate decisions with the new business
intelligence.
For example, with the help of a Data Mining tool, one large US
retailer discovered that people who purchase diapers often purchase beer.
Upon analyzing the data, it was discovered that young husbands are
frequently asked by their spouses to pick up diapers after work, and those husbands were
also picking up other household necessities, at the same time!
Needless to say, the retailer quickly capitalized on
this business intelligence by strategically locating the beer right next to
the diapers! By doing so, the retailer sold more diapers and more beer!
