Data Mining

Abstract

The following paper will examine the effective uses of and various methodologies with respect to data mining used by business intelligence. We will explore several different articles and compare different opinions and real life examples within an organization that regularly utilize data mining. Small, mid-size and larger companies will utilize data mining techniques to solve various problems. This is achieved by tracking and analyzing data in an effort to make solid business decisions within the institutions as well as to monitor daily activities and maximize production. Business intelligence within an organization is a key strategy used to identify, process and analyze, and improve data sets that are pertinent to everyday business.

To understand the true definition of data mining we must first explore an in depth analysis of business intelligence and how companies use this technology to assist their managers in making informed business decisions. The techniques and methodologies with respect to data mining are analyzed so that business intelligence divisions within a company can formulate daily operations as well as long term planning. Many different types of businesses utilize data mining however, we will discuss specifics regarding the business intelligence division within a large loan servicing company that specializes in both residential and commercial mortgage lending. There are certain data mining techniques utilized to find and process data that is used to assist the organization in making decisions for marketing, loss mitigation work outs, and best practices for daily operations.

Turban & Volonino indicate the primary role of business intelligence (BI) is to allow management to readily access and analyze the company’s information so appropriate business decisions are made (2011). A structured and functioning BI department contains a large data warehouse, business performance management tools, analytics, and...