What are the different problems that “Data mining” can solve? Data warehousing

There are basically four problems that “Data mining” can solve:-
Analyzing Relationships
This term is also often called as “Link Analysis”. For instance one of the companies who sold adult products did an age survey of his customers. He found his entire products where bought by customers between age of 25 – 29. He further became suspicious that all of his customers must have kids around 2 to 5 years as that’s the normal age of marriage. He analyzed further and found that maximum of his customers where married with kids. Now the company can also try selling kid products to the same customer as they will be interested in buying it, which can tremendously boost up his sales. Now here the link analysis was done between the “age” and “kids” decide a marketing strategy.

choosing right Alternatives
If a business wants to make a decision between choices data mining can come to rescue.
For example one the companies saw a major resignation wave in his company. So the HR decided to have a look at employee’s joining date. They found that major of the resignations have come from employee’s who have stayed in the company for more than 2 years and there where some resignation’s from fresher. So the HR made decision to motivate the freshers rather than 2 years completed employee’s to retain people. As HR thought it’s easy to motivate freshers rather than old employees.

Prediction
Prediction is more about forecasting how the business will move ahead. For instance
company has sold 1000 Shoe product items, if the company puts a discount on the product sales can go up to 2000.

Improving the current process.
Past data can be analyzed to view how we can improve the business process. For instance for past two years company has been distributing product “X” using plastic bags and product “Y” using paper bags. Company has observed closely that product “Y” sold the same amount as product “X” but has huge profits. Company further analyzed that major cost of product “X” was due to packaging the product in plastic bags. Now the company can improve the process by using the paper bags and bringing down the cost and thus increasing profits.