Define Data Mining. How it is useful for a future retail firm.

Data Mining is a process of extracting hidden predictive information from large databases. It is a powerful new technology to help companies focus on the most important information in their data warehouses. Data mining tools predict future trends and behaviours, allowing businesses to make proactive, knowledge-driven decisions. It involves the use of various data analysis tools to discover new facts, valid patterns and relationships in large data sets. Data mining in Future retail group would assist in the following: It would help the company in focusing on the most important information in the data warehouses; this could be related to ticket size, sales patterns. It facilitates in extracting meaningful patterns like on which weekday, maximum sales took place. It helps in analysis like which brand is doing better, which product is being sold mostly. It assists in prediction of monthly sales, inventory to be ordered etc. It assists in designing marketing, pricing and operational strategies like whether to run discount or loyalty programme etc. It will also help the company in maintain shelf space for its products and have better product placements which can be converted ultimately in to improved sales.