First of all for those of you who do not know what an Information System is, it can simply defined as a combination of interrelated components including hardware, software and trained personnel that collect, retrieve, process, store and distribute information to support decision making and control in an organisation.
There are many different trends in information systems. Information is a vital factor in the success of any organisation in todays world. Nowadays the role of information systems is edging towards supporting business processes rather than individual functions.
An important trend is the ability for companies to use Data Mining tools to collect information regarding consumer purchases and other economic trends. This allows management in firms to turn information into goals and objectives in order to carry out future operations within the business. Data mining tools predict behaviors and future trends, allowing businesses to make proactive, knowledge-driven decisions. Data mining is primarily used today by companies with a strong consumer focus – retail, financial, communication, and marketing organizations. It enables these companies to determine relationships among “internal” factors such as price, product positioning, or staff skills, and “external” factors such as economic indicators, competition, and customer demographics.
Data mining consists of five major elements:
- Extract, transform, and load transaction data onto the data warehouse system.
- Store and manage the data in a multidimensional database system.
- Provide data access to business analysts and information technology professionals.
- Analyze the data by application software.
- Present the data in a useful format, such as a graph or table.
In the short-term, the results of data mining will be in profitable. In the medium term, data mining may be as common and easy to use as e-mail and In the long-term, the future of Data Mining is truly exciting! Computers may discover and reveal many new things that will help make business a lot easier.
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