Question

Explain the relationship between data mining and predictive analytics.

Answer 1

Data Mining:- It is basically the gathering of data from all the sources & then structuring in a way, so that it can be read & analyzed in better way.

Predictive analysis:- Predictive analysis plays a key role in capturing information & then making business decisions for customers. It uses algorithms & functions so that next course of action can be decided which is best suited from business perspective. It also helps to keep an insight on the data & hence future transactions.

Relationship between data mining & predictive analysis:-

As explained above both of these terms are used to apply complicated mathematics rules to data/information so that business problems can be solved and a solution can be achieved. Data Mining is basically referring to analytical toolset that is designed in such a manner that it locates for the useful patterns/ behaviors in giant data. Contrastingly, predictive analysis as name suggests is a technique wherein an analyst in an guided environment studies the patterns of data from past behaviors & graphs & predicts future decisions to be made about business & customers. Basically data mining helps in identifying the hints/clues which define the pattern whereas predictive analysis gives you the most appropriate next move/ step /action to be taken. Data Mining gives you an insight of the problem & data of the transactions whereas predictive analysis delivers you the solution, mentioning the actions which need to be conducted. Data mining is a way to represent relate data in any structured way, be it excel, graphs etc. Predictive analysis starts once you have played with data that is once you have gathered the data & re-presented it in most appropriate form, predictive analysis will define explicitly individual decisions.

Basically Data mining is a first step in the process of predictive analysis. It is a techniques using which data is gathered in a structured manner so that analysis can be performed on the same for better business decision making. Predictive analysis is being done to gain valuable insight to the business; increase competitive advantage; Forecasting the future trends & creating new business opportunities.

The basic relationship between the two is that data mining explores the data & predictive analysis defines the forward looking prediction or forecast.