This week's topic dealt with databases and its management. Additionally we had to create a database on our own using Microsoft Access. In the chapter we had to prepare for this week, "data mining" was introduced. The book defines it as a "process to find patterns and relationships among data". I already encountered this concept several times in prior courses and think it is especially valuable, as well as important, to successfully compete in today's business environment.
Data mining is also known as "Knowledge-Discovery in Databases", since it employs algorithms to search large databases automatically to recognize patterns and connections among data points in these databases. These algorithms are based on statistical techniques and make it possible that we detect trends, relationships and the like, that we otherwise would not have detected, since the pool of data available to us is incredibly large and we could impossibly skim through all of it. Data mining is often utilized for a wide range of profiling practices, for example in marketing, where this process is commonly used to identify customers' current purchasing behavior and trends.
I consider this process very important in today's business environment because data mining is a powerful tool to more accurately forecast future sales and enables companies to be more responsive to its customers. Consequently, they can build a competitive advantage in their industry with the potential to become a sustainable one, if companies learn to utilize the data mining techniques effectively to build relationships with their customers.
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