Data mining automates the process of finding predictive information in a large database. It uses data on past promotional mailings to identify the targets most likely to maximize return on investment in future mailings.
Automated discovery of previously unknown patterns
Data mining tools sweep through databases and identify previously hidden patterns. An example of pattern discovery is the analysis of retail sales data to identify seemingly unrelated products that are often purchased together.
What if every telephone call you make, every credit card purchase you make, every flight you take, every visit to the doctor you make, every warranty card you send in, every employment application you fill out, every school record you have, your credit record, every web page you visit ... was all collected together? A lot would be known about you!
Data Readiness for Analysis :
Data-mining requires a consolidated "de-duplicated" and cleaned data store to draw from. Seventy to 85 percent of the work in building models using data mining relates to the cleaning and preparation of data prior to a specific analysis.