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Road to Data Mining…….

I am going to discuss the evolution of Data Mining from a  layman’s point of view. I have this perception that Data Mining is going to be  the future of BI as we switch over to Knowledge era from Information era. To  understand the evolution of Data Mining we have to recapitulate the basics of  Artificial Intelligence. The concept of intelligence built upon four elements:  Data, Information, Knowledge and Wisdom or Intelligence. Let us unfold each  component briefly,


The basic compound for intelligence is Data. Actually raw  facts and numbers are known as Data.

Information is produced by assigning meaning to Data. Simply  we can consider Information as “Data in context”.

Structured information about one domain is known as knowledge  in that domain.

Intelligence  or wisdom embodies awareness, insight, moral judgments, and principles to  construct new knowledge and improve upon existing ones.


Following Bank example would illuminate the  definitions:
    Data: The numbers 100 or 5 without any  context
    Information: Principal amount of money: $100, Interest rate:  5%
    Knowledge: At the end of Year I get $105 back
    Intelligence:  Concept of growth


We have discussed the basic components of Business  Intelligence. Now we can have a look at the stage by stage evolution of Data  Mining.


Evolutionary Step

Business Need

Enabling Technologies


Data Collection


“What was my total revenue in the last five years?”

Computers, tapes, disks

Retrospective, static data delivery

Data Access


“What were unit sales in New  England last March?”

Relational databases (RDBMS), Structured Query Language  (SQL), ODBC

Retrospective, dynamic data delivery at record  level

Data Warehousing &

Decision Support


“What were unit sales in New  England last March? Drill down to Boston.”

On-line analytic processing (OLAP), multidimensional  databases, data warehouses

Retrospective, dynamic data delivery at multiple  levels

Data Mining

(Emerging Today)

“What’s likely to happen to Boston unit sales next month? Why?”

Advanced algorithms, multiprocessor computers, massive  databases

Prospective, proactive information  delivery



As we know currently we are in the switch over process to  Knowledge era. Data Mining is going to be the indubitable tool in this age. Bear  in Mind the tool for age of Intelligence is still under construction…………

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