The two main functions of data mining are classification and prediction (or forecasting). Data mining helps you make sense of those countless gigabytes of raw data stored in databases by finding important patterns and rules present in the data or derived from it. Analysts then use this knowledge to make predictions and recommendations about new or future data. The main business applications of data mining are learning who your customers are and what they need, understanding where the sales are coming from and what factors affect them, fashioning marketing strategies, and predicting future business indicators.

With the ...