Data and Business Intelligence Glossary Terms
Knowledge Discovery in Databases (KDD)
Knowledge Discovery in Databases (KDD) is the process of finding useful information and patterns in data. Think of it as mining for gold, but instead of sifting through rocks and dirt, you’re sifting through data to uncover hidden treasures—valuable insights that can help a business make smarter decisions. KDD involves several steps, starting with preparing the data (cleaning it up and selecting what’s important) and then using data mining techniques to discover patterns and relationships within the data.
The heart of KDD is data mining, which uses algorithms and statistical models to explore the data and find patterns that might not be immediately obvious. For example, a company might use KDD to analyze customer purchase histories to figure out which products are often bought together. This could lead to better product recommendations for customers and increased sales for the company.
In business intelligence and data analytics, KDD is a powerful tool because it transforms raw data into knowledge that businesses can use. By making sense of large amounts of data, companies can predict trends, understand customer behavior better, and make choices that are informed by data, not just gut feelings. This can give them a big advantage in the market.
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